Find the equilibrium quantity and price in market

Assignment Help Business Economics
Reference no: EM133125816

Consider the market for widgets, which is perfectly competitive market. Demand is given by QD = 240 - P. Supply is given by QS = 120.

a. Find the equilibrium quantity and price in this market.

b. Suppose the government imposes a tax of t = $20 on each widget sold. How many widgets are sold after the tax is imposed? What price do consumer pay? What price do producers receive?

c. Who bears a larger part of the burden of the tax, consumers or producers? Briefly explain the intuition for why this is the case.

Reference no: EM133125816

Questions Cloud

What is the company expected cost of equity capital : Tele Ltd has a beta of 1.3 and is trying to calculate its cost of equity capital. What is the company expected cost of equity capital
Production possibilities frontiers for china and japan : Assume that taste and technology are identical in China and Japan. Assume that China is labor abundant and Japan is capital abundant. Assume that production of
Weaknesses of the w arthur lewis model : What are the strengths and weaknesses of the W. Arthur Lewis model?
Aggregate expenditure model : Which of the following statements is TRUE regarding the Aggregate Expenditure model? 1The expenditure which changes as income and real GDP changes is referred t
Find the equilibrium quantity and price in market : Consider the market for widgets, which is perfectly competitive market. Demand is given by QD = 240 - P. Supply is given by QS = 120.
Explain the genomics methods : Discuss whether the results support their conclusions. You should also discuss whether their results are consistent with previous work
How much should the country club charge : A country club estimates the typical golfer's (inverse) annual demand to play a 9-hole round is P = 1,450 - 80Q, How much should the country club charge
Discuss different political patterns among thirteen colonies : Discuss the different political patterns among the thirteen colonies. Identify the three major regions: the Southern, Mid-Atlantic, and New England colonies. Sp
What is the present value of the bond : The interest rate for similar bonds is currently 9%. Assuming annual payments, what is the present value of the bond

Reviews

Write a Review

Business Economics Questions & Answers

  To let the decision stand-consistent judgments

This means “to let the decision stand” and is used by courts to make consistent judgments.

  Relationship be with local governments

What should the role of international organizations be in helping to shape the global economy? Do they help or hurt local economies? What should their relationship be with local governments? What should their relationship be with global businesses..

  Establish a range for q

Establish a range for Q from 0 to 1,000 in increments of 100 (i.e., 0, 100, 200, ..., 1,000).

  Recall the application about the time involved

Recall the Application about the time involved in including cell phones in the calculation of the CPI to answer the following? question(s). According to this? Application, cell phones were introduced to the public in? 1983, but it took the Bureau of ..

  Projects with different time length

A town's recreation department is trying to decide how to use a piece of land. One option is to put up basketball courts with an expected life of 5 years.

  Calculate the price elasticity of demand

Calculate the price elasticity of demand (using the midpoint method as the price of compact discs increases from 10$ to 13$,assuming that consumer's income is $40,000. Show your work.me is $40,000.Show your work. b.On the bases of your answer to part..

  Market equilibrium wages by the firm

Will monitoring costs decline or increase when employees are paid the above-market equilibrium wages by the firm?

  Configuring a new wireless-enabled thermostat

After configuring a new wireless-enabled thermostat to control the temperature of the company's meeting room, Joe, a network administrator, determined the thermostat was not connecting to the internet-based control system. Joe verified the thermos..

  Illustrate what is the average product of labor

K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor). Illustrate what is the average product of labor.

  Supply and demand schedule for labor hours in france

Here are listed the supply and demand schedule for labor hours in France. This country has several restrictive laws & strikes!

  Discussing the possible reasons for decline in growth rate

A recent report on GDP growth rates showed that the GDP of Dorada, a developed economy, has declined by 1.5 percent this year. Emily George and her friend Tabitha Jude, both students of economics, are discussing the possible reasons for the decline i..

  Finding the required interest rate

Finding the required interest rate Your parents will retire in 15 years. They currently have $270,000, and they think they will need $850,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any ad..

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