Calculate the equilibrium price and quantity, Macroeconomics

Assignment Help:

2184_Market for good X.png

Question 1: What is the equilibrium price and quantity?

Question 2: How do you describe the market situation, if the market price is higher than the equilibrium price?

Question 3:The government imposes a price ceiling of $1.20/unit. Calculate the surplus (shortage).

Question 4: The government imposes a price floor of $1.50/unit. Calculate the surplus (shortage).

Question 5: If the government imposes a quota of 5000units, calculate the supply price, the demand price, the quota rent, and the deadweight loss to the society.

Question 6: The government decides to tax the good X at a rate of $0.30/unit and collect that tax from the consumers, calculate the price paid by the consumers, the price received by the producers, the tax revenue, and the deadweight loss to the society. Calculate the incidence of tax. By using the elasticity of demand and supply comparison, explain why consumers (producers) are paying more tax than the producers (consumers).

Question 7:The government decides to tax the good X at a rate of $0.30/unit and collect that tax from the producers, calculate the price paid by the consumers, the price received by the producers, the tax revenue, and the deadweight loss to the society. Calculate the incidence of tax. By using the elasticity of demand and supply comparison, explain why consumers (producers) are paying more tax than the producers (consumers).


Related Discussions:- Calculate the equilibrium price and quantity

Is-lm approach, with help of is-lm technique explain the process of integra...

with help of is-lm technique explain the process of integration of money market and goods market by way of keynesian approach

Illustrates about the terms of elasticity, Illustrates about the terms of e...

Illustrates about the terms of elasticity? • Definition of elasticity a. Price elasticity of demand b. Income elasticity of demand and c. Price elasticity of supply

What is labor market, Q. What is Labor Market? Labor market in the IS-L...

Q. What is Labor Market? Labor market in the IS-LM model is the same as in cross model. Hence the IS-LM model is only applicable if profit-maximizing quantity of L would result

Consumers become better educated about the products, How can consumers beco...

How can consumers become better educated about the products they are considering for purchase? To what extent do you personally go to acquire the best information available?

Firm''s total revenues, How much will your firm's total revenues (revenues ...

How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?

BUS668, Assuming that the expectations theory is the correct theory of the ...

Assuming that the expectations theory is the correct theory of the term structure, calculate the interest rates in the term structure for maturity. Next, plot the resulting yield c

Augmented phillips curve, Q. Augmented Phillips curve? Remember that Ph...

Q. Augmented Phillips curve? Remember that Phillips curve, as it was incorporated into the Keynesian model, presumed a stable relationship between wage inflation andunemploymen

Population growth is greater than the growth of real output, If population ...

If population growth is greater than the growth of real output, A. real per capita Gross Domestic Product (GDP) growth will be less than the growth of real Gross Domestic Product

Recommendation reduces cost, In "Kitchen Nightmares", Chef Gordon Ramsa vis...

In "Kitchen Nightmares", Chef Gordon Ramsa visits struggling restaurants and gives the owners of the restaurant a number of recommendations intended to reverse the restaurant's pro

Exchange rate, what are the types of exchange rate

what are the types of exchange rate

Write Your Message!

Captcha
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