Calculate the initial consumer surplus

Assignment Help Business Management
Reference no: EM131217567

Suppose that in the market for aluminum rods the demand and supply functions are given by:

Demand Function: QD = 300 - 2.5PSupply Function: QS = 5P - 15

Where P = price per aluminum rod and Q = number of aluminum rods

(a) Find the initial equilibrium price and quantity. Calculate the initial consumer surplus (CS) and producer surplus (PS).

(b) Suppose the government imposes a price floor on aluminum rods. Aluminum rods must now sell for$50 per unit. Will there be a surplus or a shortage of aluminum rods at the price floor? Calculate theamount of the surplus or shortage.

(c) Calculate the consumer surplus (CS) and producer surplus (PS) after the imposition of the price floor.Calculate the deadweight loss associated with the imposition of the price floor.

(d) Are households better off or worse off after the imposition of the price floor? Are firms better off orworse off after the imposition of the price floor? Use your answers from Parts (a) and (c) to explain youranswer.

Reference no: EM131217567

Questions Cloud

Discuss relevant reasons for the current condition : Discuss relevant reasons for the current condition of collective bargaining, union contracts, and the decline in private sector union membership.
Determine if the following systems are asymptotically stable : Without using the Routh-Hurwitz criterion, determine if the following systems are asymptotically stable. marginally stable, or unstable. In each case, the closed-loop system transfer function is given.
Equilibrium price and quantity of canadian maple syrup : (a) Find the initial equilibrium price and quantity of Canadian maple syrup. (b) Calculate the initial consumer surplus (CS) and producer surplus (PS).
Discuss the concept of patient centered care : Evaluate the tools and resources identified by the Institute for Healthcare Improvement-"http://www.ihi.org/Pages/default.aspx" to develop an organizational culture, and systems. Examine how multidisciplinary collaboration and patient centered car..
Calculate the initial consumer surplus : (a) Find the initial equilibrium price and quantity. Calculate the initial consumer surplus (CS) and producer surplus (PS). (b) Suppose the government imposes a price floor on aluminum rods. Aluminum rods must now sell for$50 per unit. Will th..
Determine the number of roots of each equation : Using the Routh-Hurwitz criterion, determine the stability of the closed-loop system that has the following characteristic equations. Determine the number of roots of each equation that are in the right-half s-plane and on the jω-axis.
Explain quality initiatives that reduce organizational risk : Lastly, explain how you would promote collaborations among clinical professionals, explain methods that encourage physician leadership in patient care enhancement, and explain quality initiatives that reduce organizational risk and support patient..
Calculate the most economical conductor size : A 2-conductor cable 1 km long is required to supply a constant current of 200 A throughout the year.- Calculate the most economical conductor size.
Examine the current pressures on the labor side : In a three-page paper detail the current pressures on the U.S. labor relations system-on the corporate side, such issues can be workplace flexibility and employment involvement. Also, examine the current pressures on the labor side, such as low un..

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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