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Consider product Y with industry supply given by p = 40 + q and industry demand given by p = 20 - 2q. What is
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- Consider the perfectly competitive market for gasoline. The aggregate demand forgasoline is D (p) = 100 - p. Given the choke price is 100, if the equilibrium price is P25 and the equilibrium quantity is 75 units, what is the consumer surplus?When the perfectly elastic supply curve shifts upwards (increase in price), does producer surplus exist? If so, where does it existAs the only producer in the apple market, at what price, how many apples would Alex sell per week in order to maximize his economic profit? Calculate his producer surplus.
- demand equations QD = 3550 - 20P supply equations QS = 1800 + 30P Calculate initial consumer surplus for the above firm.Producer surplus is the difference between the price the firm would be willing to sell its food for and the price the firm actually receives. True or falseSuppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P. Assume this market is perfectly competitive. How much consumer surplus is created in this market? How much producer surplus?
- Question 8 (1 point) Listen Junior's Sporting Goods sells camping equipment and outdoor gear. The company is willing to sell a particular fishing pole for as little as $55. Its main competitor is Sporty Gear, which is willing to sell the fishing pole for as little as $35. The current market price of that type of fishing pole is $75. What is the total producer surplus for the two firms? Your Answer: Answer Question 9 (1 point) Listen Karen can make 1 jackets or 17 ties in one day working at the clothing factory. Joe can make 8 jackets or 32 ties in one day working at the clothing factory. What is Joe's opportunity cost of producing 1 tie? Round your answer to one decimal place. Be sure to enter the correct units for what they are giving up. Your Answer: Answer unitsYou are the benevolent social planner for your city. several small foods businesses approach you, stating that they plan to increase their prices to compete with national food establishments. as a benevolent social planner, would you advise them to raise their prices or not? explain your answer using concepts in producer and consumer surplus?Refer to Table 4-4. The table above lists the marginal cost of sunglasses by Miami Dade Shades, a firm that specializes in producing designer sunglasses. If the market price for a pair of Miami Dade Shades sunglasses is $175, producer surplus is $10. $35. $140. $230.
- Imagine you are the owner of the Omaha Surfboard Company. You have a branch in Omaha and in Long Beach CA. After some market research you find the following surfboard demand for each market, Omaha Demand: Qo = 1000 – 10P Long Beach Demand: QL = 1000 – 5P Combined/Total Demand: Q = 2000 – 15P Your marginal cost is constant at $40. a. Find your price and quantity if you treated the market as a single entity with a single price. What is your profit? (Hint: find Marginal Revenue and set equal to MC) b. If you treat each market separately, what is P and Quantity in each market, and final profit?Given a demand curve of P = 131 - 4Qd and supply of P = 2 + 6Qs, please calculate producer surplus, assuming this is the output marketSuppose there is a downward sloping demand curve that has a y-intercept of 60 and an upward sloping supply curve that has a y-intercept of 8. If the competitive equilibrium Price is 38 and Quantity is 48 what would be the size of the overall total surplus (consumer surplus plus producer surplus) for this market? (Please answer to 2 decimal places as needed) Your Answer: 42 Answer