Compute value for p that prevails before police intervention

Assignment Help Business Economics
Reference no: EM1365398

In a certain city, the demand function for crack cocaine is q = 1,000 - p, where p is the street price. The cocaine industry is competitive. Cocaine distributors can buy as much cocaine as they wish at a price of $50 per unit from Colombian sources. Whenever the city narcotics police catch a cocaine dealer, they confiscate all the cocaine that he has. The jails are full so they do not imprison the dealers. The police are able to catch the dealers about half the time, so they get about half the cocaine that enters the city. Instead of destroying confiscated crack, the police simply resell it on the street. If the original supply curve of cocaine on the streets was horizontal, what is the net effect of police activities on the market for crack in this city?

Calculate the value for p that prevails before police intervention in the market.

Calculate the value for q that prevails before police intervention in the market.

Calculate the value for p that will result from police intervention in the market.

 

Reference no: EM1365398

Questions Cloud

What comprising both an order of chicken and of biscuits : If LFC sells chicken and biscuits as a meal deal, what price would be set for the meal deal which comprising both an order of chicken and an order of biscuits
Express the potential difference between the plates : express the potential difference between the plates.
What do you mean by the pattern of trade : No suppose that the soy industry produces differentiated products and is characterized by EOS and monopolistic competition. Auto industry is still perfectly competitive. what do you mean by the pattern of trade.
Find the electric field at the position of the electron : Find the electric field (in N/C) at the position of the electron.
Compute value for p that prevails before police intervention : If the original supply curve of cocaine on the streets was horizontal, what is the net effect of police activities on the market for crack in this city. Compute the value for p that prevails before police intervention in the market.
Define the potential difference between the plates : define the potential difference between the plates.With what force must the player push the puck so that his force just equals the frictional force.
Describe if the demand for the following products is price : Describe if the demand for the following products is price elastic or price inelastic, and explain your answer.
Illustrate what were some of the marginal benefits : Illustrate what were some of the marginal benefits that the city would derive as the result of keeping this project alive.
What is the approximate mass of the cat : What is the approximate mass of the cat.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Annual percentage change in velocity

What would the annual percentage change in velocity have to be on average for the quantity theory to hold.

  Kuwait had the capacity to produce a certain amount of oil

Consider we did technological change in the class where it does contribute to one side of the production use that to understand the problem.

  Marginal cost of abatement is for the firm

Assume that after the exchange of one permit, the marginal cost of abatement is for the firm that sold the permit for $170 also the marginal cost of the firm

  Consumption pattern and welfare be affected

how will Kristine s consumption pattern and welfare be affected

  Supply and demand model

Use supply and demand model to explain the dramatic rise in the price of a college education.

  Most important in determining development

Illustrate what factors seem to be most important in determining development also why

  Illustrate what are the monopolist''s profit-maximizing price

Illustrate what are the monopolist's profit-maximizing price and total output.

  Find out the real rate of interest earned by albert in each

Find out the real rate of interest earned by Albert in each of the three years and his total real return over the three-year period. Suppose that interest earnings are reinvested each year and themselves earn interest.

  Elucidate the impact does the dollar appreciation

Elucidate the impact does the dollar appreciation have on the firm's international competitiveness.

  Economic envijorgement led to this new equilibrium

Illustrate what change in the economic enviJorgement led to this new equilibrium.

  Independent of quantity produced

Clarify why might the Homo sapiens production possibilities curve have shifted outward to right much more rapidly than persons of Neanderthals.

  Illustrate at what level of l do diminishing marginal return

Consider the following short-run production function: q = 5L2 - 1/3L3. Illustrate at what level of L do diminishing marginal returns begin. At what level of L do diminishing returns begin.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd