6. Assume Psub and Tech is zero for all sections EXCEPT for (vi) below (Double Shift).
i. Market Equilibrium: What is the equilibrium price and equilibrium quantity for and ?
What is the elasticity at the equilibrium price and output level?
iii. Producer and Consumer Surplus:
What are the Consumer and Producer Surplus?
iv. Price Controls: Suppose a relevant price control at price of $10 is implemented?
1. What type of price control is it? Price Ceiling Price Floor (Circle One)
2. What is the result? Surplus Shortage (Circle One)
3. How large is the shortage or surplus? ____________
v. Taxes: Given and what is the effect of a $10 dollar tax? Please identify:
2. Price received by the sellers
3. Price paid by the consumers
4. Consumer Surplus
5. Tax Revenue
vi. Double Shifts: Given and . Suppose Tech increases to 225 and Psub to $1.
1. Please calculate the new equilibrium price and quantity.
i) Qd = -49.08P + 8000, Qs = 10P - 25, at equilibrium, Qd = Qs
-49.08P + 8000 = 10P - 25, P = 135.83, Q = 1333.3
ii) elasticity of demand = P/Q X (dQ/dP)
dQ/dP = d(-49.08P + 8000)/dP = -49.08,
elasticity = (135.83)/(1333.3) X (-49.08) = -5
iii) Look at the graph I attached (csps),
The expert calculates the new equilibrium price and quantity. Double shifts are analyzed.
Short answer questions in economics: economics, market economy, command economy,supply and demand
Questions (also attached):
1) What is economics?
2) What types of things are considered in economics? What is not?
3) What role does economics play in your personal decisions?
4) What are the advantages of a market versus a command economy?
1. What is the difference between the shift of and a movement along the demand curve?
2. What is the difference between the shift of and a movement along the supply curve?
3. How do shortages and surpluses develop?
4. What types of shortages and surpluses affect you either personally or in your work environment?
2. Answer the following questions:
a. What causes the changes in supply and demand?
b. How do shifts in supply and demand affect your decision making?
c. List four key points in the study of economics.