What is the equilibrium price and quantity of the product

Assignment Help Econometrics
Reference no: EM13232130

Suppose the demand for a product is given by P = 30 - 2Q. Also, the supply is given by P = 5 + 3Q.

A)  What is the equilibrium price and quantity of the product?
B)  What is the price elasticity of demand at the equilibrium price?

assume that there is a $5 per unit excise tax levied on the consumers of the product.

C)  What price will buyers pay after the tax is imposed?
D)  What is the deadweight loss created by the tax?
E)  What is the quantity of the good that will be sold after the tax is imposed?

Reference no: EM13232130

Questions Cloud

At what level of output is the firm breaking even : The market rpice for siding and triming a house is $10,000. The Total Cover-Up Co. has fixed costs of $4,000 for ladders, supplies and so on, and the company's variable cost for siding are: Output in # of houses 2 at VC $26,000,3 housesat $32,000
Speculations about the future : What has been called the Tea Party movement has been much in the news these days. Whether it is a movement for good or will is not at issue here. Nor are we engaged in speculations about the future.
What are popular database management systems why use oracle : What are some of the more popular database management systems? Why use Oracle
Write a memo to attach to the agenda for a team meeting : Write a memo to attach to the agenda for a team meeting - Request that the team members come with ideas so this problem can be resolved at the meeting and implemented immediately.
What is the equilibrium price and quantity of the product : Suppose the demand for a product is given by P = 30 - 2Q. Also, the supply is given by P = 5 + 3Q. A)  What is the equilibrium price and quantity of the product B)  What is the price elasticity of demand at the equilibrium price
Modern and postmodern arts revealed the human condition : In your opinion, what impact have the arts had on 20th and early 21st century society? How have modern and postmodern arts revealed the "human condition?"
What is the future of family owned business in uae : What is the future of "family owned" business in UAE? Can family owned business survive in today's fast-paced and entrepreneur environment and what are some of the additional economic/political/socio factors to be analyzed for a successful internat..
What kings of long-term benefits and-or costs result : What kings of long-term benefits and/or costs result from such a strike Draw some assumptions. Maybe the variables are what is the current wage and how long the strick will last, how much money will be lost. Are unions in the business of selling w..
Increases financial leverage : Which statement is TRUE regarding a firm that increases financial leverage? Expected returns to shareholder decreases, while shareholder risk increases. Expected returns to shareholders increases, while shareholder risk decreases.

Reviews

Write a Review

Econometrics Questions & Answers

  Determine what is the expected value of the delay

The internal study could be started immediately, and then the decision on the consultant could be made in three months. If this option is selected, the internal study will reliably indicate the outcome. If the consultant were hired, it would add t..

  Find costs incurred to be at the end of the respective year

The construction of a dam will cost $1,000 at time 0, $500 in year 1, and $500 in year 2. It will be completed at the end of year 2. From year 3, maintenance costs will be $100 per year through year 10. From years 11 on, maintenance costs will be ..

  Determine the annual effective interest rate

You have just applied for a credit card with the following term and condition: You are to pay 13.9% APR, compounded monthly.If your current balance is $3000 and you skip payments for 2 months, what would be the total balance in your credit card stat..

  Determine effective annual interest rate paid

If a person borrows $12455.37 and agrees to pay it back in 60 monthly installments of $550.55, determine a) effective interest rate paid (corresponding with payment frequency units). b) nominal interest rate paid. c) effective annual interest rate pa..

  What level of govt purchases is needed to achieve profit

In the Keynesian cross, assume that the consumption function is given by: C=200+0.75 (Y-T). PLanned investment is 100, government purchases and taxes are both 100. a. Graph planned expenditure as a fraction of income. b. What is the equilibrium lev..

  What change in govt purchases and taxes would be needed

Suppose instead that the goverment wished to raise GDP to 7,100, but it was unwilling to run a surplus or deficit. Therefore the change in government purchases would have to be matched by and equal change in taxes. What change in government purcha..

  What is the probability for different cases of meal price

The 2003 Zagat Restaurant Survey provides food, décor, and service ratings for some of the top restaurants across the United States. For 15 top-ranked restaurants located in New York, the average price of a dinner including, one drink and tip, wa..

  What is the price of the perpetuity

A perpetuity pays $200 per year. The issuer promises to increase payment by 1 percent per year. The current interest rate is 5 percent. What is the price of this perpetuity

  Compute the value of the test statistic

According to the Census Bureau, 3.20 people reside in the typical American household. A sample of 26 households in Arizona retirement communities showed the mean number of residents per household was 2.86 residents.

  What would a export in adam smiths world

Country B has 35000 units of labor and takes 7 units of labor to produce one unit of manufactures and 5 units to produce one unit of food. What is the price of manufactures in terms of food at which A and B would respectively supply manufactures.

  Define which country has the higher wage

America takes 10 hours to make a cup and 5 hours to make a bag. In Britain the two goods cost $24 and 6 hours. America has 40 hours of labor available. Which goods does America export. Which country has the higher wage

  What is the standard error of the mean in seconds

CRA CDs, Inc., wants the mean lengths of the "cuts" on a CD to be 135 seconds (2 minutes and 15 seconds). This will allow the disk jockeys to have plenty of time for commercials within each 10-minute segment. Assume the distribution of the length

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