Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question 2
Show all working and draw graphs indicating Consumer surplus, producer surplus and dead weight loss as required.
Suppose the demand curve is p = 80 − x and the supply curve is p = 4x.
1. What is the market equilibrium price and quantity?
2. How much is the consumer surplus and the producer surplus?
CS =______ and PS =_______
3. Suppose the government manipulates the price and fixes it to $90. How much is the dead weight loss?
DWL = ________
4. Instead of the price manipulation, the government introduces a per unit production tax, t = $1. What is the dead weight loss?
DWL = _________
Why is elasticity of demand, useful in policy decisions Consider both price elasticity of demand and income elasticity of demand. Using graphs to illustrate your explanations of elasticity of demand, when elasticity changes and when it does not
The CEO of Always Round Tire has decided to open a battery division. He thinks that batteries would sell well with tires at their outlets AND that Always Round's quality reputation will be transferred to the batteries. Should he set up the new div..
What will be the possible concequences if a large scale like Toyota place its new product in Indian market without having forecast the demand for its product
Consider an economy with three types of drivers: safe (s), inexperienced (i), and crazy (c). There is an equal number of each of these drivers, and their wealth when they do not get into an accident is $324 per person. In any given year, the proba..
A recent newspaper circular advertised the following special on tires: Buy three, get the fourth tire for free-limit one free tire per customer. If a consumer has $500 to spend on tires and other goods and each tire usually sells for $50 how does ..
After few years, cost of production of Panadol increased due to increase in price of paracetamol (one of the main ingredient used in the production of Panadol). Due to this increase people started using Disprine instead of Panadol.
1) PowerSki uses to transmit design changes to suppliers of the 340 components that make up the Jetboard. association software collaboration software design software alliance software 2) Following basically the same process that you'd use to buy a ..
The fiscal policy measure that has more direct impact on the economy is an increase in government spending if consumer confidence is lower than the previous month. One of the ways the President Obama stimulated the economy was through increased g..
Critics of traditional welfare programs often argue that a downside of traditional welfare programs is that when the government gives lower income people money, it causes them to work less. Compare and contrast the theoretical implications on lab..
What amount must be deposited into a savings account that pays 8% interest if the inflation rate is 10% and you want to set aside enough money to purchase a red tape cutting machine ten years after the deposit? The current cost of a red tape cutting ..
Assume that the unemployment profits provided through the private sector are raised permanently,
Why does international trade occur What does it mean to run a deficit in the merchandise trade balance Distinguish between a tariff and a quota. Who benefits from and who is harmed by such restrictions on imports
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd