Reference no: EM131045984
1. Suppose that the market for milk is a competitive market and can be described by the following demand and supply curves:
D = 1,400 - 400P S = 400P - 200
Where P = price per litre of milk
Calculate the equilibrium price and quantity of milk and draw a diagram to illustrate your answer.
Calculate the (i) producer surplus (ii) consumer surplus (iii) economic surplus and (iv) deadweight loss if the market for milk operates at the equilibrium price and quantity.
Suppose that the government imposes a price ceiling of $1 per litre of milk.
1. (i) Illustrate the price ceiling on the diagram you drew in (a)
2. (ii) How much milk is now purchased in the market?
3. (iii) Calculate the amount of the surplus or shortage of milk created by the imposition of the price ceiling.
4. (iv) Calculate the (i) producer surplus (ii) consumer surplus (iii) economic surplus and (iv) deadweight loss after the introduction of the price ceiling.
(v) Is society better off following the introduction of the price ceiling?
(vi) Are producers better off following the introduction of the price ceiling?
(vii) Are consumers better off following the introduction of the price ceiling?
|
Give the sizes and offsets of the sequence of fragments
: Give the sizes and offsets of the sequence of fragments delivered to the network layer at the destination host.
|
|
What was the quantity of money
: A country has a constant population, capital stock, and technology. In 2010, real GDP was $ 300 million, the quantity of money was $60 million, and the velocity of the circulation of money was $10 million. In 2011, the price level rose by 20%.
|
|
City bank a depositary bank
: Jones, a food wholesaler whose company has an account with City Bank in New York City, is traveling in California on business. He finds a particularly attractive offer and decides to buy a carload of oranges for delivery in New York. He gives Salt..
|
|
Problems that can occur if the timeout value is too small
: Describe the problems that can occur if the timeout value is too small or too large.
|
|
Equilibrium price and quantity of milk
: Calculate the equilibrium price and quantity of milk and draw a diagram to illustrate your answer.
|
|
Ip currently uses 32-bit addresses
: If we could redesign IP to use the 6-byte MAC address instead of the 32-bit address, would we be able to eliminate the need for ARP? Explain why or why not.
|
|
Why is being a foster parent a difficult role
: What other professionals are involved in a child abuse intervention process? What are some ways of preparing children if they have to testify in Court that minimizes trauma? What are some goals in treating physically abusive family?
|
|
Assume that dinah draws a check on oxford bank
: Assume that Dinah draws a check on Oxford Bank, payable to the order of Pam; that Pam indorses it to Amy; that Amy deposits it to her account in Houston Bank; that Houston Bank presents it to Oxford Bank, the drawe
|
|
Average inventory carrying-holding cost
: 1. What is the average inventory carrying/holding cost for the brakes? 2. What is the EOQ for the brakes? 3. What is the ROP for the brakes?
|