What is the equilibrium price and quantity-producer surplus

Assignment Help Business Economics

Reference no: EM13800495

Assume the demand for balloons is P=40-2Q. The supply is P=3Q.

1) What is the equilibrium price and quantity?

2) What is producer surplus?

3) What is the consumer surplus? (Make sure you show all your work)

Reference no: EM13800495

Questions Cloud

Examples of economic indicators : Which of the following are examples of economic indicators? check all that apply. Which of the following statements regarding procyclical, countercyclical and leading economic indicators is corrects? check all that apply

Compare and contrast two events motivated by incentives : Compare and contrast two events motivated by incentives, one where the self-interested behavior was good for society and the other where it was bad.

Order to finance a government-sponsored health plan : These graphs describe the competitive dynamic model. Suppose that, in order to finance a government- sponsored health plan, the government needs to increase spending by 10%. The government plans to finance the higher spending with an increase in taxe..

Describe the competitive dynamic model : Suppose that, in order to finance a government- sponsored health plan, the government needs to increase spending by 10%. The government plans to finance the higher spending with an increase in taxes. As a consequence of this government policy, the ag..

What is the equilibrium price and quantity-producer surplus : Assume the demand for balloons is P=40-2Q. The supply is P=3Q. What is the equilibrium price and quantity? What is producer surplus? What is the consumer surplus?

What is the equilibrium price and quantity : The demand for a good is P=200-5Q. The supply is P=50+10Q. What is the equilibrium price and quantity? (Make sure you show all your work)

How much producer surplus is created by this trade : John advertises his used car for $5,000 in the newspaper. He would be willing to sell his car for as little as $4,000. Bill values the car at $4,800 but offers $4,500 for it and John accepts. How much producer surplus is created by this trade? How mu..

Two changes affect the equilibrium in the market for coffee : The government releases a report saying that drinking coffee makes you live a longer, healthier life. At the same time, we discover that a very bad winter has killed most of the coffee plants in Brazil. How will these two changes affect the equilibri..

Therefore with the foreign aid program : Consider the case of a poor country that receives foreign aid. The aid consists on donations to consumers which represent an increase in their lifetime income of 5%. One of your economist friend is against this foreign aid program. He says that it do..

User Account

All Pages