Determine consumer surplus the producer surplus total

Reference no: EM13394711

Suppose that the demand curve for apartments near the university is given by P =1000 -Q and the supply curve is given by P = 400+ 2Q

a. Plot a diagram of the market for apartments.

b. Find the equilibrium in the market.

c. Find the consumer surplus, the producer surplus and the total surplus from the market.

d. Suppose that the local government, in an attempt to help the students financially, imposes a price ceiling of $500 on rental apartments. Find the number of apartments that students will be able to rent at that price.

e. Find the excess demand for rental apartments that will arise from the price ceiling.

f. Find the consumer surplus, the producer surplus, the total surplus and the deadweight loss in the presence of the price ceiling.

g. Illustrate with a diagram the market for apartments after the price ceiling is imposed and show on your diagram the excess demand in the market, the consumer surplus, the producer surplus, and the deadweight loss resulting from the price ceiling.

Reference no: EM13394711

Questions Cloud

How do norms of the informal groups to which you belong : the consider tuckman group stage process schema as discussed in your text. identify specific actions a manager can take

The given discussion board task will help you in evaluating : at least 400 words-all new content- at least 2-referencesrisks can occur as a result of both known riskssuch as for

Illustrate consumer surplus before and after price subsidy : suppose that micronesia is a small country that imports milk thus it takes the world price of milk as given. illustrate

Discuss environmental factors that may impact the : select a business or organization that does both domestic and international marketing. be sure to cover each of the

Determine consumer surplus the producer surplus total : suppose that the demand curve for apartments near the university is given by p 1000 -q and the supply curve is given by

Consider the experiment of drawing two cards from a deck in : 1consider the experiment of drawing two cards from a deck in which all picture cards have been removed and adding their

In this discussion you will consider how you would involve : involving the community in program developmentin this discussion you will consider how you would involve the community

Analyze the importance of competitive intelligence and : select one of the following companies1.nbspnbspnbspnbsp ford motor company2.nbspnbspnbspnbsp

What are the different types of plans that organizations : what are the different types of plans that organizations can use? what types of plans does your organization use and

User Account

All Pages