Whats the change in price due to the subsidy

Assignment Help Managerial Economics

Reference no: EM13753515

MARKET DATA
Price of tuna	$15.00
Quantity demanded	1129
Quantity supplied	3763
Excess demand	-2634

DEMAND DATA
Income	$20,000
Price of tacos	$6.00
Price of wine	$20.00

SUPPLY DATA
Price of sauce	$3.00
Price of labor	$5.00
Per unit tax	$0.00

1. Set the price of tuna to its equilibrium level. Now the price of tacos falls to $3. At the current price of spaghetti, supply changes by what?

2. Set the price of tuna to its equilibrium level. Govt grants a subsidy of $3 per plate. What's the change in price due to the subsidy.

Reference no: EM13753515

Questions Cloud

Different software development methods : Compare and contrast at least three (3) different software development methods. Explain why the testing of software products is of great importance

Identify two financial intermediaries : Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy?

Evaluate the median and convolution filters to reduce noise : Evaluate the median and convolution filters to reduce noise while preserving edges. Study the behavior of various 3x3 convolution filter kernels for smoothing, edge detection, and sharpening

Maintain a wireless network within the store : Maintain a wireless network within the store and Maintain a Web server in the DMZ that is protected by another firewall

Whats the change in price due to the subsidy : Set the price of tuna to its equilibrium level. Now the price of tacos falls to $3. At the current price of spaghetti, supply changes by what?

Who ruled over babylon''s last era of greatness : Who ruled over Babylon's last era of greatness? The earliest agriculturists to migrate into Europe probably came from.

Data center management : Data Center Management- Imagine you are an IT security specialist of a large organization which is opening a new data center

Recommendations on potential discretionary financing needs : Discuss and interpret the financials in relation to the initiative. Make recommendations on potential discretionary financing needs.

Find the probability of winning the jackpot : In a separate drawing, you must also select the correct single number. Find the probability of winning the jackpot.

User Account

All Pages