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

Principle of acceleration, importance and limitation of principle of accele...

importance and limitation of principle of acceleration

Trends of trade shares, Trends of Trade Shares: India's share in total...

Trends of Trade Shares: India's share in total world exports in 1950 was 1.85 percent and the share in total world imports was 1.7 1 percent. The share of both exports and imp

EXCHANGE RATES, WHAT IS THE BEST EXCHANGE RATE TYPE

WHAT IS THE BEST EXCHANGE RATE TYPE

Elasticity with respect to the price of gasoline, Suppose the annual demand...

Suppose the annual demand function for the Honda Accord is Qd = 430 - 10 PA + 10 PC - 10 PG where PA and PC are the prices of the Accord and the Toyota Camry respectively (in thous

Explain about penicillic acid, Q. Explain about Penicillic Acid? This m...

Q. Explain about Penicillic Acid? This mycotoxin has biological properties similar to patulin. It is produced by a large number of fungi, including many Penicillia as well as m

Perfect competition and monoploy, 1. # of sellers, # of buyers 2. entry and...

1. # of sellers, # of buyers 2. entry and exit conditions 3. product characteristics 4. short run P&Q determinations and the resulting 3 possibilities for excess profit (graphs ar

Average price-earnings ratio, In a survey of 120 publicly-traded companies,...

In a survey of 120 publicly-traded companies, the average price-earnings ratio was 18.5 with a standard deviation of 8.2. When testing the hypothesis (at the 5% level of significan

Var table, From estimating the aforementioned unrestricted VAR, a table of ...

From estimating the aforementioned unrestricted VAR, a table of coefficient and statistics will be produced. From this table, certain statistical information can be analysed, such

Consumer price index, (Consumer Price Index)Given the following data, what ...

(Consumer Price Index)Given the following data, what was the value of the consumer price index in the base year? Calculate the annual rate of consumer price inflation in 2013 in ea

Define the tools of competitive market, Define the tools of Competitive mar...

Define the tools of Competitive market. Competitive market: The supply and demand model a. The demand curve b. The supply curve c. Factors which cause the demand cu

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