Answers
a) At equilibrium,
Demand equals supply
3Q + 6 = -2Q + 146
Q = 28
P = 90
Equilibrium occurs at point D
Consumer surplus is area of triangle ABD whose area is (1/2) * (28 - 0) * (146 - 90) = 784
Producer surplus is area of triangle BCD whose area is (1/2) * (28 - 0) * (90 - 6) = 1,176
b) With price ceiling at $78,
Consumer surplus is area of triangle AGF + area of rectangle FGHE whose area is (1/2) * (24 - 0) * (146 - 98) + (98 - 78) * (24 - 0) = 1,056
Producer surplus is area of triangle EHC whose area is (!/2) * (24 - 0) * (78 - 6) = 864
Deadweight loss is area of triangle GHD whose area is (1/2) * (28 - 24) * (98 - 78) = 40
c) Due to price ceiling, there is less supply of goods than the desired quantity in the market which creates a shortage of goods in the market. Consumers who are willing to higher quantity than this would be hurt off.
trie 2146 625 2813
A-146 fos ge- В 9 - Price Ceiling €278 13 24 28
.
Similar Solved Questions
1 answer
Variable Costing Income Statement for a Service Company The actual and planned data for Underwater University...
Variable Costing Income Statement for a Service Company The actual and planned data for Underwater University for the Fall term were as follows: Actual Planned Enrollment 4,500 4,125 Tuition per credit hour $120 $135 Credit hours 60,450 43,200 Registration, records, and marketing costs per enrolled ...
1 answer
Exercise 15-05 a-c (Video) (Part Level Submission) Sheffield Company applies manufacturing overhead to jobs on the...
Exercise 15-05 a-c (Video) (Part Level Submission) Sheffield Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $331,515 for the year, and machine usage is estimated at 125,100 hours. For the year, $356,850 of overhead costs are i...
1 answer
How many electrons does an iron atom contain?
How many electrons does an iron atom contain?...
1 answer
On January 1,2021,Catty Company issued$840,000 of 8%,10-year bonds for 97. Catty retired all of these bonds...
On January 1,2021,Catty Company issued$840,000 of 8%,10-year bonds for 97. Catty retired all of these bonds on January 1,2022,at 102.If Patty uses the straight-line amortization,how much loss should be recognized on this bond retirement?...
1 answer
Which gives the force on a charged particle placed in an electric field? Which gives the...
Which gives the force on a charged particle placed in an electric field? Which gives the force on a charged particle placed in an electric field? The force is the product of the charge and the electric field The force is the ratio of the electric field to the charge. The force is the ratio of the c...
1 answer
Repeat SPIDER 2 Q1, but write a function that accepts a year as an input argument...
Repeat SPIDER 2 Q1, but write a function that accepts a year as an input argument and determines whether that year is a leap year. The output should be the variable extra_day, which should be 1 if the year is a leap year and 0 otherwise. Spider two Q1 1. Write code to determine whether a year is a l...
1 answer
Consider a large hospital that wants to estimate the average length of stay of its patients....
Consider a large hospital that wants to estimate the average length of stay of its patients. The hospital randomly samples n = 100 of its patients and finds that the sample mean length of stay is 4.5 days. Assume that the standard deviation of the length of stay for all hospital patients is 4 days. ...
1 answer
An electric dipole consists from charges Q and Q (where Q-2.0 nC) separated by distance 2.0...
An electric dipole consists from charges Q and Q (where Q-2.0 nC) separated by distance 2.0 cm. What is the strength of the electric field in the middle of two charges. (Provide your answer in N/C, use 3 significant figures) Type your response...
1 answer
John's parents recorded his height at various ages up to 66 months. They decide to use...
John's parents recorded his height at various ages up to 66 months. They decide to use the least-squares regression line of John's height on age to predict his height at age 21 years (252 months). We conclude: a. John's height, in inches, should be about half his age, in month...
1 answer
Exercise 1-11 Cost Behavior; Contribution Format Income Statement (LO1-4, LO1-6) 5.5 points Harris Company manufactures and...
Exercise 1-11 Cost Behavior; Contribution Format Income Statement (LO1-4, LO1-6) 5.5 points Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and cos unit over the relevant range of 62,000 to 102.000 units is given below: Required...
1 answer
Proell governor has equal arms of length 300 mm. The upper and lower ends of the...
Proell governor has equal arms of length 300 mm. The upper and lower ends of the arms are pivoted on the axis of the governor. The extension arms of the lower links are each 80 mm long and parallel to the axis when the radii of rotation of the balls are 150 mm and 200 mm. The mass of each ball is 10...
1 answer
Question Completion Status: Year Unemployment rate 2001 4.7 2002 5.8 2003 6.0 2004 5.5 2005 5.1...
Question Completion Status: Year Unemployment rate 2001 4.7 2002 5.8 2003 6.0 2004 5.5 2005 5.1 2006 4.6 2007 4.6 2008 5.8 2009 9.3 2010 96 2011 89 2012 8.1 National Bureau of Labor Statistic Source: Use your cakulator to draw a time series plot for this data and describe the trend you A 8.87 see, B...
1 answer
Problem 6-34 (LO 6-2) (Algo) Larry recently invested $26,500 (tax basis) in purchasing a limited partnership...
Problem 6-34 (LO 6-2) (Algo) Larry recently invested $26,500 (tax basis) in purchasing a limited partnership interest. His at-risk amount is also $26,500. In addition, Larry’s share of the limited partnership loss for the year is $2,325, his share of income from a different limited partnership...