Construct a budget neutral subsidy

Assignment Help Macroeconomics

Reference no: EM13181515

Consider a market where demand is: P = 6 - Q and supply is S: P = Q.

1. Equilibrium quantity Qe is

a. 2

b. 3

c. 4

d. 5

2. Equilibrium price Pe is

a. $2

b. $3

c. $4

d. $5

3. Consumer surplus CS is

a. $0.5

b. $4.5

c. $12.5

d. $16.5

4. Producer surplus PS is

a. $0.5

b. $4.5

c. $12.5

d. $16.5

5. Total surplus TS is

a. $5

b. $7

c. $8

d. $9

Construct a budget neutral subsidy in the above market.

6. Quantity Q' is

a. 2

b. 3

c. 4

d. 5

7. Post-subsidy producer price Pp is

a. $2

b. $3

c. $4

d. $5

8. Consumer surplus CS is

a. $0.5

b. $4.5

c. $12.5

d. $16.5

9. Producer surplus PS is

a. $0.5

b. $4.5

c. $12.5

d. $16.5

10. Total surplus TS is (do not forget to account for the subsidy expenditure SE)

a. $5

b. $7

c. $8

d. $9

Reference no: EM13181515

Questions Cloud

Explain water consistent with the oversimplified approach : water consistent with this oversimplified approach? Explain your answer ( note that there is a threshold temperature below which this approach will have a significant error)

Find the maximum value of the quadratic function : Find the maximum value of the quadratic function. Make sure to show your work.

State gibbs free energy and equilibrium the reaction : Gibbs Free Energy and Equilibrium The reaction SO2(g)+2H2S(g)?3S(s)+2H2O(g) is the basis of a suggested method for removal of SO2 from power-plant stack gases

Find the rate in feet per minute at which he should rappel : Hunter is at the top of a cliff getting ready to rappel. If Hunter is 1,418 feet above the ground, and he wants to complete his rappel down the cliff in m minutes, which expression can be used to find the rate in feet per minute at which he should..

Construct a budget neutral subsidy : Consider a market where demand is: P = 6 - Q and supply is S: P = Q. 1. Equilibrium quantity Qe is Total surplus TS is (do not forget to account for the subsidy expenditure SE) Construct a budget neutral subsidy in the above market.

Explain primary standard for acid-base titrations : Constant-boiling HCl can be used as a primary standard for acid-base titrations. A 50.00 mL sample of constant-boiling HCl with a concentration of 0.1193 M was collected and titrated to an end point with 34.89 mL of Ba(OH)2 solution. What is the m..

What is the height of the tree : angle of elevation to the top of the tree to be 53°. What is the height of the tree? Round your answer to the nearest foot.

Express the hydrostatic force against one side : A trapezoid with bases 4 m and 6 m is partially submerged vertically in water so that the top is 1 m above the surface and the bottom is 1 m below the surface. Express the hydrostatic force against one side of the plate as an integral and evaluate..

Civil compliant with a criminal charge : How do you practically bridge a civil compliant with a criminal charge? Which case comes first? Can info from one case be shared with the other?

User Account

All Pages