Minimum size of deadweight loss

Assignment Help Business Economics
Reference no: EM13904730

The demand for comic books is given by P = 90 - Qd. Supply of comic books is given by P = 2Qs. Suppose that the government imposed a price floor of $70 in this market. What will be the minimum size of deadweight loss?

Reference no: EM13904730

Questions Cloud

The difference between common and preferred stock : The difference between common and preferred stock
Formula for the total demand in the market : If we assume that a given bus market is in competition which charges a flat fare of N$1, and if the formula for the total demand (in thousands) in the market is given by the equation:
How often is the adjustment recalculated? : How often is the adjustment recalculated?
Apply to nursing practice in order to implement competency : Select two (2) of the six QSEN competencies and consider the definitions. For each competency selected, discuss two (2) strategies the RN can apply to nursing practice in order to implement the competency. Indicate if you are addressing the knowledge..
Minimum size of deadweight loss : The demand for comic books is given by P = 90 - Qd. Supply of comic books is given by P = 2Qs. Suppose that the government imposed a price floor of $70 in this market. What will be the minimum size of deadweight loss?
Expected to play under the affordable care act : Long-term care services must be individualized, integrated, and coordinated. Elaborate on this statement, pointing out why these elements are essential in the delivery of long-term care. Describe in detail the role managed care is expected to play un..
What will be the expected return to the stockholders : Assume that, if Don Jackson's proposal were adopted, next year's dividend would be zero but earnings growth would rise to 14 percent. What will be the expected return to the stockholders?
Price elasticity of demand at the market equilibrium : Suppose that the market for paint is in equilibrium. The demand for paint is given by Qd=5000-8P. The supply of paint is given by Qs=2000+2P. What is the price elasticity of demand at the market equilibrium?
How much time will thoreau spend in leisure : How much time will Thoreau spend in leisure - How many units of consumption good will he produce - Using the production function from part a), what is the marginal product of labor at the amount of labor in part a)?

Reviews

Write a Review

Business Economics Questions & Answers

  What is the expected return for this bond if market price

Your company is interested in analyzing the behavior of interest rates and the models used to predict interest rates in the future. As an initial project in this area, you have been assigned the task of creating a presentation that will show the top ..

  Illustrate account in order to make a decision of policy

Illustrate what or considerations may be taken into account in order to make a decision on implementation of policy.

  Contractionary and expansionary monetary policy

What is the difference between contractionary and expansionary monetary policy? What is the difference between contractionary and expansionary fiscal policy? How does each policy affect the AD in the economy? What are the benefits and major problems ..

  How can fiscal policy create jobs

How can fiscal policy create jobs? Discuss Can the government make things worse by intervening in markets? Are there other options outside the markets and government that will fix macroeconomic failure? Discuss

  Assume no transactions to prevent exchange rate risk

Assume an American company sells $10 million in goods to a German firm. The American company will receive less than $10 million in revenues if (assume no transactions to prevent exchange rate risk):

  Each with an quantity of two goods-corn and sugar

Consider two consumers, John and Maria, each with an quantity of two goods: corn and sugar. a. John has 30 gallons of gasoline (G) and 20 bags of sugar (S); for that basket of goods, his MRS(GS) is 1G/5S. Maria has 30 gallons of gasoline (G) and 50 b..

  Consumption bundles lies on the same indifference curve

Fisher's utility function for trout (T) and salmon (S) is given by U = ST, where the MUT = S and MUs = T. Which set of consumption bundles lies on the same indifference curve?

  What is the equilibrium wage and employment

In a particular industry, labor supply is ES = 6w - 4 and labor demand is ED = 52 ? 2w, where E is the level of employment and w is the hourly wage. What is the equilibrium wage and employment if the labor market is competitive? What is the unemploym..

  Discuss arguments for and against monopolies

Using the characteristics of the monopoly structure to help you, discuss the arguments for and against monopolies. Explain the moral hazard problem and the adverse selection problem. Describe the difference between them, and discuss instances where t..

  What are the equilibrium prices and quantities

Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2. What are the equilibrium prices and quantities if the firms..

  Your firm faces considerable revenue uncertainty

Your firm faces considerable revenue uncertainty because you have to negotiate contracts with several customers. You forecast a 20 percent chance that your revenues will be $200,000, a 30 percent chance that your revenues will be $300,000, and a 50 p..

  Considering a decrease in the real interest rate

Recently, there has been a spate of instability throughout the world. The immigration crisis in the EU, and the political instability in parts of the Middle East. Explain intuitively why the NCO curve slopes downward. Begin your explanation, by consi..

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