Question: Please answer questions a, b1 and b2. A market has a demand function given by the equation Qd = 180 - 2p, and a supply

Please answer questions a, b1 and b2.

A market has a demand function given by the equation Qd = 180 - 2p, and a supply function given by the equation Qs = -15 + P. The market is government regulated with a price support per unit and production quotas.

(a) If the price is set at $72 per unit, what production quota is needed to make sure there are no shortgages or surpluses?

(b) Due to good weather, there is an increase in demand for the good. The new demand equation is Qd = 190 - 2P. The government is trying to decide between two options:

Maintain the number of quotas and let the market adjust, or
Maintain the price support and increase the number of quotas.

Suppose that the government decided to maintain the number of quotas and let the market adjust calculate:

price observed in the market
the consumer surplus

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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 Economics Questions!

6-4 APPLICATION PROBLEM Finding and correcting errors in accounting records Ervin Watkins has completed the April monthly work sheet for his business, EverClean. The work sheet and general ledger...

Please confirm if the solutions to the following questions are correct Question 6 A market has a demand function given by the equation Gd 2 180 RP, and a supply function given by the equation Qs : 1...

1. Market demand function is given by Qd = 180 - 2P, and a Market supply function is given by Qs = 15 + P. The market is government-regulated with a price support per unit and production quotas. If...

Market demand function is given by Qd = 180 - 2P, and a Market supply function is given by Qs = 15 + P. The market is government-regulated with a price support per unit and production quotas. If the...

\fQuestion 6 A market has a demand function given by the equation Qd = 180 - 2P, and a supply function given by the equation Qs = -15 + P. The market is government-regulated with a price support per...

Please assist with the following questions by confirming if the answers entered are correct A market has a demand function given by the equation Gd 2 18C! 2P, and a supply function given by the...

Part A Question 6 A market has a demand function given by the equation Gd 2 180 2P, and a supply function given by the equation Qs : 1 5 + P. The market is government regulated with a price support...

1) Suppose that Elon Musk successfully implements hyperloops all over the country, which can transport people between major cities cheaper, faster, and more safely than airlines can. What would...

Question 1 Imagine that you have been given a job as an economic advisor to evaluate a certain competitive US manufacturing industry. Your (accurate) statistical analysis indicates the market is...

Digrams are necessary where applicable Question: 1. Suppose the price of x1 is $20 and the price of x2 is $4. If good x1 is on the horizontal axis... 1. Suppose the price of x, is $20 and the price...

Provide solutions to the following attachments. Question 1 There are 10,000 identical individuals in the market for commodity X, each with a demand function given by Qodx = 12 - 2Px, and 1000...

Fatima Fertilizer is thinking of replacing its existing machinery and two options are available. The German model is available but only on lease basis. The lease payments of this model are expected...

The critical values from the chi-square distribution table are important to compute the confidence interval of a population variance. Use Excel to replicate the chi-square critical values table from...

Use THOpital's Rule to rewrite the given limit so that it is not an indeterminate form. lim x 0 1 - c o s x 3 x 2 = lim x 0

After establishing their companys fiscal year-end to be October 31, Natalie and Curtis began operating Cookie & Coffee Creations Inc. on November 1, 2012. On that date, they issued both preferred and...

A 1.0 kg copper rod rests on two horizontal rails 1.0 m apart and carries a current of 50 A from one rail to the other. The coefficient of static friction between rod and rails is 0.60. What are the...

Grignard reagents react with oxetane, a four-membered cyclic ether, to yield primary alcohols, but the reaction is much slower than the corresponding reaction with ethylene oxide. Suggest a reason...

Odlaw Corporation had the following transactions relating to debt investments: Jan. 1 Purchased 50, $1,000, 12% Clinton Company bonds for $50,000 plus brokers fees of $1,500. Interest is payable...

The following selected accounts and their current balances appear in the ledger of Drapery Land Co. for the fiscal year ended July 31, 2010: Instructions 1. Prepare a multiple-step income statement....

son A manufacturer is designing a product layout for a new product production. It plans to use a production line for 8 hours per day in order to meet forecasted demand of 100 units per day. The...

6. List examples from your local environment of people that have a so-called Protestant character. Add further characteristics to this phenomenon than those mentioned in this chapter.

10. Choose someone you know and answer the following questions: a) Does this person have a low or high level of competence in a particular field? b) Do you have a low or high level of confidence in...

1. To gain insight into how a communication situation can be framed to maximize impact.