User Account

All Pages

What is the equilibrium price and quantity of sugar

Assignment Help Business Economics
Reference no: EM133080453

The demand for sugar is: ?Q = 20 - P

The supply of sugar is:?Q = 2 + P 

Quantities are in million hundredweight (cwt.) and price is dollars per cwt.

Please graph on graph paper the following problems.  Label all axes, lines, and equilibrium values

1. What is the equilibrium price and quantity of sugar in the absence of any agricultural policy?

2. If the government establishes a support price for sugar of $12 per cwt. (hundred pounds) and is willing to buy up any surplus sugar at that price, indicate on your graph the quantity supplied, quantity demanded, and quantity purchased by the government.  If the units are million cwt., how much money is required for the government purchases?  Show this amount on your graph.

3. The government decides that the sugar price support program is getting too expensive.  It abandons the support-price program and instead assigns a marketing quota to each sugar producer.  This quotagives the holder the right to sell sugar on the market and can be transferred to other producers.  Altogether the quotas allocated to sugar growers add up to 9million cwt.  Please graph this problem, indicating clearly the market price and quantity.

4. If there is a free market for renting quota, what is the maximum the quota should rent for per cwt? If a farmer with marginal production costs of $6 per cwt. owned quota, would it be more profitable for her/him to produce the sugar or to rent the quota to someone else? Please explain.

Reference no: EM133080453

Questions Cloud

Explain the benefits and costs of education : 1.The debate over the appropriate role of government in education began centuries ago and continues unabated to date. Explain briefly some of the arguments for
Crucial evidence of minnie guilt : Mrs. Hale and Mrs. Peters cover up crucial evidence of Minnie's guilt, which means she'll probably be acquitted of her husband's murder.
How much money can a production company that makes : How much money can a production company that makes fluidized bed scrubbers spend now instead of spending $200,000 in year 5 if the interest rates are estimated
Why do rental cars require more maintenance : Why do rental cars require more maintenance in their first 50,000 kilometres than comparable cars driven by private owners?
What is the equilibrium price and quantity of sugar : Please graph on graph paper the following problems. Label all axes, lines, and equilibrium values
What is the impact of the tariff on producer surplus : A country named Lobbyland is a large economy trading freely in the world marketplace. However, the automobile industry has been recently lobbying the government
Compute the cournot equilibrium quantities and price : Which one has constant marginal cost? 2. Define the reaction functions of the firms. 3. Compute the Cournot equilibrium quantities and price.
Why do some communities have volunteer fire departments : Why do some communities have volunteer fire departments? Short answer please
Understand the value of self-care in addiction : Charlie is a co-worker who has worked as an addiction counselor with the agency for 22 years. You notice that Charlie takes long lunch breaks and recently you h

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd