Question: A person's demand and supply equations for rice per month are as following: Demand: Q = 40 - 5*P Supply : Q = -20 +

A person's demand and supply equations for rice per month are as following:

Demand: Q =  40 - 5*P

Supply  : Q = -20 + 10*P


Required:

What are the market equilibrium price ($/kg) and quantity (kgs/month) for rice?

At the market equilibrium price, what are the consumer surplus and producer surplus?

If the rice price rises to $5/kg, 

What are the consumer surplus and producer surplus?  

What is the impact of this rice price increase on the consumers and producers as a whole?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To find the market equilibrium price and quantity for rice we need to set the demand equal to the su... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Complexico mine Consider the Complexico mine and assume a 10% constant interest rate; also assume the price of gold is constant at $400/oz. (a) Find the value of the mine (not a 10-year lease) if the...

Q:

Required: Calculate the amount of research and development expenses Delaware must report in its 2018 income statement. Delaware Company incurred the following research and development costs during...

Q:

On August 29, 2005, Hurricane Katrina caused severe damage to oil installations in the Gulf of Mexico. Although this damage could eventually be repaired, it resulted in a substantial reduction in the...

Q:

Multiple Choice Questions 1. In a supply and demand graph, the triangular area under the demand curve but above the market price is a. The consumer surplus. b. The producer surplus. c. The marginal...

Q:

Question3 (30 marks) A person's demand and supply equations for rice per month are as following: Demand: Q = 40 - 5*P Supply : Q = -20 + 10*P Required: What are the market equilibrium price ($/kg)...

Q:

Question 4 (30 marks) A person's demand and supply equations for rice per month are as following: Demand: Q = 40 5*P Supply : Q= -20 + 10*P a. What are the market equilibrium price ($/kg) and...

Q:

Question 4 (30 marks) A persons demand and supply equations for rice per month are as following: Demand: Q = 40 5*P Supply : Q = -20 + 10*P a. What are the market equilibrium price ($/kg) and...

Q:

A person's demand and supply equations for pork per month are as follows: Demand: Q = 25 - 5*p Supply: Q = -20 + 10*p Required: a. What are the market equilibrium price ($/kg) and quantity...

Q:

PLEASE HELP ME WITH THIS. I WILL GIVE YOU POSITIVE FEEDBACK. THE QUESTION IS IN THE IMAGE ATTACHED BELOW. 3. A small country can import a good at a world price of $10 per unit. The domestic demand...

Q:

A small country can import a good at a world price of $10 per unit The domestic demand and supply curves are given by the following equations Demand D 400 5P Supply S 20 10P, where D is the quantity...

Q:

Q3 [110 points] Suppose that an estimated monthly demand and supply functions for apples in the U.S. are given by: Q = 200 - 40 p + 20 pg + 0.015Y Q = 85 + 35 p - 20 p where Q is the quantity of...

Q:

Cultural change was obviously difficult at NASA. Can you think of specific things that could have been done to make cultural changes more lasting or more effective? MINI CASE The first space shuttle...

Q:

The makers of the candy M& Ms report that their plain M& Ms are composed of 15% yellow, 10% red, 20% orange, 25% blue, 15% green, and 15% brown. If you randomly select an M& M, what is the...

Q:

Which statement is correct? Option A Fees on separately - managed non - registered accounts are tax deductible. Option B Fees on separately - managed non - registered accounts are tiered to client...

Q:

Two long, parallel wires hang by 4.00-cm-Iong cords from a common axis (Fig). The wires have a mass per unit length of 0.0125 kg/m and carry the same current in opposite directions. What is the...

Q:

In the situation described in Problem 20 and illustrated in Figure P12.20, the lift cable suddenly breaks! The hinge between the castle wall and the bridge is frictionless, and the bridge swings...

Q:

A company has capital of $200,000,000. It has an expected ROIC of 9 percent, forecasted constant growth of 5 percent, and a WACC of 10 percent. What is its value of operations? What is its MVA?

Q:

Figure shows a beam expander made with two coaxial converging lenses of focal lengths f1 and f2 and separation d = f1 + f2. The device can expand a laser beam while keeping the light rays in the beam...

Q:

Let us consider how we might translate a set of STRIPS schemata into the successor-state axioms of situation calculus. Consider the schema for Fly (p, from. to). Write a logical definition for the...

Q:

The value of tanx is given. Find sinx and cosx if x lies in the specified interval.tanx=25,xin[0,2]

Q:

The supply function and the demand function for a product are linear and are determined by the tables that follow. (a) Write an equation for the supply function and one for the demand function. (b)...

Q:

The manufacturer of a medicine wants to test how a new 300-milligram capsule is released into the bloodstream. After a every half-hour, and the number of milligrams of the drug in the bloodstream is...

Q:

Simplify each of the following (a) 2x / 2x + 4 (b) 4x2y3 - 6x3y4 / 2x2y2 - 3xy3

Q:

A rental agreement requires the payment of $900 at the beginning of each month. a. What single payment at the beginning of the rental year should the landlord accept instead of twelve monthly...

Q:

Bram must choose between two alternatives for $1,000,000 of life insurance coverage for the next ten years. The premium quoted to him by Sun Life Insurance Co. is $51.75 per month. Atlantic Life will...

Q:

Calculate and rank the economic values of the following cash flow streams: (i) A single payment of $10,000 eight years from now. (ii) An annuity due starting today with eight annual payments of $850....