What is the equilibrium price and quantity in this market

Assignment Help Business Economics

Reference no: EM13983900

The market for pumpkins is a competitive market where the quantity of crates demanded is given by Qd = 18.2 – 0.2P and the quantity of crates supplied is given by Qs = (P/6) – 0.5.

Provide the inverse demand and inverse supply functions for pumpkins. What is the equilibrium price and quantity in this market?

A tax of $44 per crate of pumpkins is imposed on the pumpkin sellers. What is the equilibrium price and quantity after the tax? How much tax revenue and how much deadweight loss are produced by the tax on pumpkins?

Reference no: EM13983900

Questions Cloud

Business with the intention of earning : PiR8 Systems has borrowed a sum of $2.5M from a bank at interest rate of 4.5%. The company also borrowed $0.5M from other sources at a interest rate of 4%. Additionally the owners have invested $2.5M in the business with the intention of earning 15% ..

Ratio between the price of labor and the price of capital : If the ratio between the price of labor and the price of capital (w/r) is smaller than the ration between the marginal product of labor and the marginal product of capital, the firm should hire more capital. Normally the ratio between the price of a ..

When a perfectly competitive firm is producing : When a perfectly competitive firm is producing at its profit maximizing level of output, its MR is equal to price and its MC while it may or may not be making an economic profit. The price a profit maximizing monopoly charges is always greater than i..

A monopolistically competitive firm sets its price equal : A monopolistically competitive firm sets its price equal to its MR, while keeping it above MC. We say that the long-run equilibrium of a monopolistically competitive firm reflects excess capacity because its MC is not equal to its ATC. In a duopoly w..

What is the equilibrium price and quantity in this market : The market for pumpkins is a competitive market where the quantity of crates demanded is given by Qd = 18.2 – 0.2P and the quantity of crates supplied is given by Qs = (P/6) – 0.5. Provide the inverse demand and inverse supply functions for pumpkins...

The firm should hire at least one additional worker : Assume a firm employs 10 workers and pays each $15 per hour. Also assume that the marginal product of an 11th worker would be 5 additional units of output per hour and that the price the firm receives for its good is $4 per unit. In the short run, a...

Maximum amount of utility he will receive at the optimum : Suppose Lyle's utility function is U= XY + X + Y, X,Y greater than or equal to 0. Determine the optimal quantities of X and Y that Lyle should purchase as well as the maximum amount of utility he will receive at the optimum

Because agricultural demand is inelastic : "Because agricultural demand is inelastic, a technological advance that lowers costs will reduce total revenues. Thus, farmers have no incentive to adopt such new technology." True or false? Explain

Ratio of consumer liabilities to consumer financial assets : The ratio of consumer liabilities to consumer financial assets rose from just over 10% in 1950 to more than 30% in 2009. However, recent researches points to a number of factors that bear on the consumer’s decision of when and how much to borrow. Lea..

User Account

All Pages