Deadweight loss attributed to the quota

Assignment Help Microeconomics
Reference no: EM132472891

Demand function: Q = 220 - 20P Supply function: Q = 20 + 20P

Question 1: The equilibrium price of taxi rides is _____ and the equilibrium quantity is ______:

Question 2: Suppose the city government establishes a medallion system that limits the number of taxi rides available per week to 80 taxi rides. The price at which consumers will want to purchase 80 taxi rides per week (demand price) is ______.

Question 3: With the quota in place, the price at which suppliers will be willing to supply 80 rides per week (supply price) is ______.

Question 4:The quota rent per medallion is,

Question 5: The total value of the taxi medallions per week is _____

Question 6: The deadweight loss attributed to the quota is _____

Reference no: EM132472891

Questions Cloud

Discuss the assumptions of freuds psychoanalytical theory : Explain whether you believe it is appropriate to apply psychoanalytic theory to women and individuals from racial and ethnic minority groups.
Summarize what was learned from the lesson and readings : Regarding my last discussion post assignment please respond to this: Thanks for your discussion and thoughts for addressing the situation that occurred.
Calculate the most efficient level of production per week : Make any assumptions necessary to calculate the most efficient level of production per week.
Discuss about assessing threats to the freedom of the press : Discuss about Assessing Threats to the Freedom of the Press. How serious are the current threats to the freedom of the press? Support your views with reason
Deadweight loss attributed to the quota : Suppose the city government establishes a medallion system that limits the number of taxi rides available per week to 80 taxi rides.
Discuss about the awareness of stereotypes : In this unit, you will be using the template to explore your growing awareness of stereotypes and their impact on cultural diversity. Download the Stereotypes.
Construct a typical weekly income leisure constraint : Suppose that the wage rate is $20 per hour for a typical labor. a. Construct a typical weekly income leisure constraint for this person.
What are the impacts of gender role socialization : Discuss what is the mean for Gender, masculinity, gender roles, and the impacts of gender role socialization. Must be APA format, 4 references
Draw a graph of a competitive market in? equilibrium : Draw a graph of a competitive market in? equilibrium, and illustrate a decrease in Demand. Carefully label everything. Use the? "E" labels to label

Reviews

Write a Review

Microeconomics Questions & Answers

  Why is the given firm considered a natural monopoly

Why is this firm considered a natural monopoly? If the firm is unregulated, what price and output would maximize its profit? What would be its profit or loss? Explain your answer.

  Will inflation rise and continue at the new higher rate

If oil (or energy) prices double, then remain steady at the new higher price, and the Fed does nothing, will inflation rise and continue at the new higher rate.

  Supposing equilibrium in the loanable funds market

Supposing equilibrium in the loanable funds market exists use the following numbers to determine the quantity of funds supplied in the loanable funds market.

  What long-run adjustment should you expect

Suppose the demand and cost function for a monopolistically competitive firm are given by: Q=36-4Q,C(Q)=124-16Q+Q^2. Determine the profit maximizing price and level of output.

  Why was an undervalued currency good for germany

Shortly after World War II, the US occupying forces set the value of the Dmark and the yen below equilibrium values in Germany and Japan.

  What is their short run optimal input combination

Suppose production function for noodle soup at Slurping Turtle is Q =4k^1/2 L^1/2. They currently own 4 units of capital and are not able to change this during the short run. The rental rate of capital is $10 and the wage rate is $20. Suppose Slurpin..

  Explain the concept of deadweight loss as well as answer

explain the concept of deadweight loss. as well as answer the questions why does taxing a product lead to deadweight

  Calculate the value of tariff revenue

The world price of books is $20. Suppose this economy opens its book market to trade and simultaneously enacts a tariff of $20 per book. Calculate the value of tariff revenue given the above information

  Argue that deficit spending promotes economic growth

Keynesian economists argue that deficit spending promotes economic growth because it stimulates aggregate demand in the economy. Monetary economists argue that the benefits of deficit spending are offset by the crowding out of private investment. Gra..

  Evaluate the impact of price cut

How much would Wyandotte have to reduce the price of polyol to achieve a 15 percent increase in the quantity sold? Evaluate the impact of such a price cut on(i) total revenue, (ii)total costs, and (iii)total profits.

  What macroeconomic indicator should be monitored closely

What macroeconomic indicator should be monitored closely in India in 2016? What can the Reserve bank of India do to control this indicator

  Calculate judy income elasticity of demand for bus rides

When Judy's income increased from $130 to $170 a week, she increased her demand for concert tickets by 15 percent and decreased her demand for bus rides.

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