User Account

All Pages

Consumer surplus and producer surplus

Assignment Help Business Management
Reference no: EM131449305

Suppose the price of natural gas is regulated to be no higher than $3.00 per thousand cubic feet (mcf). The supply and demand curves for natural gas are: 

Supply: QS = 15.90 + 0.72PG+ 0.05 PO 

Demand: QD = 0.02 - 1.8PG+ 0.69

POQS and QD are measured in trillion cubic feet (Tcf), PG is price of natural gas in dollars per thousand cubic feet ($/mcf), and PO is price of oil in dollars per barrel ($/b). Assume PO=50. 

a. Solve for market clearing price and quantity. 

b. Given the price control, what is the change in consumer surplus and producer surplus?

c. What is the deadweight loss?

Reference no: EM131449305

Questions Cloud

What stakeholders will be effected by the change in year end : What stakeholders (entities) will be effected by the change in year end? Explain how each of these stakeholders will potentially be impacted.
Identify data mining techniques you would apply : Identify data mining techniques you would apply to this challenge, and provide your rationale.
Develop a conceptual data model diagram : Draw an appropriate ER diagram - create an Entity Relationship (ER) diagram relevant to the above case study and perform logical design to produce appropriate3NF Relations.
Why would you choose one strategy over the other : Why would you choose one strategy over the other (take into account what product or service you might sell and in which country you may do so)?
Consumer surplus and producer surplus : Solve for market clearing price and quantity. Given the price control, what is the change in consumer surplus and producer surplus?
What will the profit level be : Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200 + 2q2, where q is the level of
Determine the firmoptimal capital-labor ratio : Employees earn $15 per hour. Rental charge is$50 per hour on capital. Davy forecasts annual costs of $500,000 per year.
Expect dollar to weaken against most major world currencies : Suppose we expect the dollar to weaken against most major world currencies over the next 5 years.
Marginal product of individual factor : What happens to the marginal product of each individual factor as that factor is increased and the other factor held constant? Please explain.

Reviews

Write a Review

Business Management Questions & Answers

  Examine the decision-making model

Various elements of critical thinking examine the decision-making model you selected and explain how it influences and/or impacts your proposed solutions

  Define various definitional perspectives of quality

Define Various definitional perspectives of quality

  Us immigration and public policyfind a current public

us immigration and public policyfind a current public policy issuecontroversy in the news today.describe and analyze

  Arizona board of regents case will serve as precedent

If in 2006 a Flagstaff plaintiff brings a lawsuit against an Arizona universities fraternity for providing alcohol to members under the legal drinking age, the Hernandez v. Arizona Board of Regents case will serve as precedent.

  Provide a comparison of the platforms

Provide a comparison of the platforms (i.e., Windows, Apple, Unix) required for the authentication header protocol and address resolution protocol.

  Does knox deserve a reprimand

Sales VP Jeremy Silva emails the sales team, praising Knox's manoeuvres. However, the human resources vice president thinks which Knox breached the industry's ethics code. Does Knox deserve a reprimand? Illustrate what would you do?

  Illustrate what segmenting base is modern maturity using

Modern Maturity magazine is targeted toward adults age 50 years and older. It has articles on health and fitness as well as the arts and finance. Illustrate what segmenting base is Modern Maturity using?

  Is jonnel correct in its assertion and why

When Jonnel did not pay the final payment, Graham and Long brought this action. Jonnel claims that the May 6 contract is controlling. Is Jonnel correct in its assertion? Why?

  Ethics-social and legal responsibility

Identify at least one legal, ethical, and social responsibility issue which impacts your selected organization. Analyze the impact that these factors have on management planning.

  Identify new prospects

Do you think that mark reps would view the website as competing for their consumers' purchases and a source of conflict or would they think that it helps them to promote mark and identify new prospects? Explain your thinking.

  History of profitability and tangible assets

Traditional lending models look for a history of profitability, tangible assets and a reasonably predictable business environment. Knowledge-based businesses do not fit this paradigm'. Discuss.

  Unacceptable at this level of college work

The history of technology is quite fascinating. Pick one type of technology (e.g., telecommunications) and discuss its historic significance and evolution.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd