Determine cost to government of buying firms unsold units

Assignment Help Managerial Economics

Reference no: EM131826532

Consider a market where supply and demand are given by Q_X^S = -14 + P_X and Q_X^d= 76 - 2P_X. Suppose the government imposes a price floor of $35, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $35 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 $35 price floor.

Reference no: EM131826532

Questions Cloud

Define type of connectivity to enterprise systems : With the proliferation of smart phones and intelligent computing tablets such as the iPad, enterprises are increasingly faced with employees who want to bring t

Find the length and width of the wall of the barn : The area of a rectangular wall of a barn is 110 square feet. Its length is 12 feet longer than twice its width.

Which lines get indented in a works cited page : What does the abbreviation Ed. mean? Which lines get indented in a Works Cited page? What word must appear in the citation if it is from the internet?

What is the present value of the offer : Tom Adams has received job offer from large investment bank as clerk to associate banker. What is present value of offer if the discount rate is 10 %.

Determine cost to government of buying firms unsold units : Determine the cost to the government of buying firms unsold units and Compute the lost social welfare (deadweight loss) that stems from the $35 price floor

Describing the design for a small web site : Develop a 5-6 page Word document that describes the design for a small Web site that meets the following specifications.

How many shares of each stock does he ?own : If stock B triples in value and stock A goes up? 50%, his stock will be worth ?$42,000. How many shares of each stock does he ?own?

Demonstrate the skill of creating a web page : Continue to build on the skills of providing Web page content and structure with HTML and Web page style and layout using CSS.

Determine the size of the two replacement payments : Determine the size of the two replacement payments if interest is 4.1% compounded quarterly and the focal date is now

User Account

All Pages