Cost to the government of buying firms unsold units

Assignment Help Business Economics

Reference no: EM13995925

Consider a market where supply and demand are given by QXS = -10 + PX and QXd = 71 - 2PX. Suppose the government imposes a price floor of $33, and agrees to purchase any and all units consumers do not buy at the floor price of $33 per unit. a. Determine the cost to the government of buying firms’ unsold units. b. Compute the lost social welfare (deadweight loss) that stems from the $33 price floor.

Reference no: EM13995925

Questions Cloud

Create an application architecture plan for rps : Create an application architecture plan for RPS to follow for the next five (5) years. Create a technology architecture plan and graphic rendering using Visio or its open source alternative software for RPS to follow for the next five (5) years

Tutorials folder under how to brief legal case : Please read Ximpleware Corp. v. Versata Software, Inc. Et Al, 2013 U.S. Dist. Lexis 172411. I've included the case below. Be sure to read the case and then brief it using the case brief format found in the tutorials folder under How to Brief a Legal ..

Determine the quantity demanded-the quantity supplied : Suppose demand and supply are given by Qd = 50 - P and Qs = 1.0P - 10. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $45 is imposed in this market Quantity demanded: Quantity supplied: Su..

Influences the contemporary practice of ihrm : Essay on Contemporary IHRM pre-departure cross-cultural training programs are critical for successful expatriate assignments. Discuss."

Cost to the government of buying firms unsold units : Consider a market where supply and demand are given by QXS = -10 + PX and QXd = 71 - 2PX. Suppose the government imposes a price floor of $33, and agrees to purchase any and all units consumers do not buy at the floor price of $33 per unit. Determine..

Determine rate of return of additional investment required : Two alternative investment proposals are under consideration for a vacant owner by Urban Development Corporation. Plan A would require an immediate investment of $120,000 and first-year expenditure for property taxes, maintenance, and insurance of $4..

The notion of dominant strategy-concept of nash equilibrium : Explain the Prisoner’s Dilemma game, the notion of dominant strategy, and the concept of Nash equilibrium and cooperation. Using these concepts, then, analyze the following duopoly game.

What are the long-term consequences of manifest destiny : How did early stereotypes of Jewish Americans differ from stereotypes of different racial and ethnic groups? Provide at least one example. What are the long-term consequences of Manifest Destiny? Please provide an example

The saving equals investment equation be derived : Looking at the circular flows model, how can the saving equals investment equation be derived?

User Account

All Pages