User Account

All Pages

Find the quantity of toothpaste

Assignment Help Microeconomics
Reference no: EM13161421

Suppose the demand for toothpaste is Qd = 11- 2P while the supply of toothpaste is Qs = 6.5 + P where quantity is measured in millions of tubes of toothpaste and price in dollars per tube.

a. Find the quantity of toothpaste that maximizes economic surplus. What is the relationship between this quantity and the market equilibrium quantity?

b. Evaluate the consumer surplus created in the market for toothpaste when the market is in equilibrium.

c. If the government decides to tax toothpaste $1.50 a tube, what price do buyers pay for toothpaste? What price do sellers receive? What is the deadweight loss of the tax?

d. Suppose instead demand was perfectly inelastic, what would be the incidence of the tax in this case? What would be the deadweight loss of the tax in this case?

Reference no: EM13161421

Questions Cloud

Explain the reaction rapidly establishes equilibrium : Nitrosyl bromide, NOBr, is formed in the reaction of nitric oxide, NO, with bromine,Br2 : 2NO(g)+Br(g) 2NOBr(g) The reaction rapidly establishes equilibrium when the reactants are mixed
What type of externalities arise : What type of externalities arise from driving automobiles fueled by gasoline and what is your view on whether the United States should raise the gas tax to the European level and why?
State what is the molarity of your naoh solution : What is the molarity of your NaOH solution? 2) You are given an impure sample of oxalic acid dihydrate (MW=126.068 g/mole) and asked to determine the percent of oxalic acid dihydrate present in the sample.
Explain fraction propane and methane : 6 moles of a mixture that contains 0.7 mole fraction propane (C3H8) with the remainder methane (CH4). It is burned in air with a 10% excess of oxygen.
Find the quantity of toothpaste : Find the quantity of toothpaste that maximizes economic surplus. What is the relationship between this quantity and the market equilibrium quantity?
How protein c is a repressor or activator of transcription : The gene encoding a hormone necessary for insect development contains DNA binding sites for three gene regulatory proteins called A, B, and C. Because the binding sites for A and B overlap, A and B cannot bind simultaneously.
Explain how would the calculated value of the equilibrium : When adding the solution of HNO3 from the buret in Step 14 to beaker 4, you know that you added 2.5 mL instead of 1.5 mL for a total volume of 11.0 mL. How would the calculated value of the equilibrium constant be affected for this sample?
What effect is the diet likely to have on housing prices : What effect is the new diet likely to have on the number of apple orchards within 100 miles of New York City?
Draw a map showing the relative position of these five loci : Loci A, B, C, D and E are on the same eukaryotic chromosome. A series of test crosses yields the following information. Draw a map showing the relative position of these five loci. Indicate all the shortest distances between genes in map units.

Reviews

Write a Review

Microeconomics Questions & Answers

  Birthrate and market for babysitting services

The small town of Middling experiences a sudden doubling of the birth rate. After three years, the birth rate returns to normal.

  What proportion of annual salary will be economic rent

How much will Jacob earn? What proportion of his annual salary will be economic rent? Why won't the advertising company for which Jacobs works be able to earn an economic profit?

  Productivity of the sheet metal workers

Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at CF&D.

  Four types of market failure

Each instance which follows is an example of one of four types of market failure (imperfect market structure; the existence of public goods; the presence of external costs and benefits; and imperfect information).

  Write a report outlining what firms need

Write a report outlining what firms need to do in order to bring in the most talented people (from anywhere) and make the fullest possible use of their abilities.

  Determining deadweight loss

A small town is served by many competing supermarkets, which have constant marginal cost. Using the diagram of market for groceries, show the consumer surplus, producer surplus, and total surplus.

  How the egg breaking rampage affects egg prices

Would you consider the demand for eggs to be elastic or inelastic and illustrate and explain with a diagram how can the Government intervene and correct this situation

  Explain what is meant by diminishing returns

Explain what is meant by diminishing returns. From these costs curves explain when diminishing return sets in? Why and explain the relationship between ATC, AVC and AFC.

  Delta-hedged portfolio

Stock registers an unexpected price decrease, Evaluate the value of your delta-hedged portfolio.

  Perfect competition-furniture industry

The industry has been very fragmented, so that few companies have the financial backing to make heavy investments in new technology and equipment.

  Computing profit maximizing price and output level

Derive the profit maximizing price and the profits at this price. What is the demand elasticity at this price? What is the total demand when the monopolist charges a price P?

  Details of price discrimination

M is the monopolist selling goods G. M's cost function is c(y)=4y where y is total production of G. Some of M's potential customers are members and get the member magazine with coupons.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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