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Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the surplus producers receive when an $8 per unit price floor is imposed on the market.
Correct answer(s):
- $33
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the surplus consumers receive when an $8 per unit price floor is imposed on the market.
Correct answer(s):
- $1
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. An $8 per unit price floor will result in a
Correct answer(s):
- surplus of 2 units.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the number of units and the price at which those units will be exchanged when there is an $8 per unit price floor.
Correct answer(s):
- 1 unit and $6 per unit.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the equilibrium price and quantity in this market.
Correct answer(s):
- $6 and 2 units, respectively.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the surplus received by consumers and producers.
Correct answer(s):
- $4 and $4, respectively.
Suppose the market supply for good X is given by QX S = -100 + 5PX. If the equilibrium price of X is $100 per unit then producers’ revenue from X is
Correct answer(s):
- cannot be determined from the information contained in the question.
Suppose the market supply for good X is given by QX S = -100 + 5PX. If the equilibrium price of X is $100 per unit then producer surplus is
Correct answer(s):
- $400.
Suppose the market demand for good X is given by QX d = 20 – 2PX. If the equilibrium price of X is $5 per unit then consumers’ expenditure on X is
Correct answer(s):
- $50
Suppose the market demand for good X is given by QX d = 20 – 2PX. If the equilibrium price of X is $5 per unit then consumer surplus is
Correct answer(s):
- $25
Given a linear supply function of the form QX S = 3,000 + 3PX – 2Pr – Pw, find the inverse linear supply function assuming Pr = $1,000 and Pw = $100.
Correct answer(s):
- PX = -300 + 0.3333QX.
Given a linear supply function of the form QX S = -10 + 5PX, find the inverse linear supply function.
Correct answer(s):
- PX = 2 + 0.2QX.
Given a linear demand function of the form QX d = 500 – 2PX – 3PY + 0.01M, find the inverse linear demand function assuming M = 20,000 and PY = 10.
Correct answer(s):
- PX = 335 - 0.5QX.
Given a linear demand function of the form QX d = 100 – 0.5PX, find the inverse linear demand function.
Correct answer(s):
- PX = 200 - 2QX.
Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?
Correct answer(s):
- It will rise.
An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline, would shift the supply curve
Correct answer(s):
- up by $1.00.
All else held constant, as additional firms enter an industry
Correct answer(s):
- more output is available at each given price.
Good X is an inferior good if a decrease in income leads to
Correct answer(s):
- an increase in the demand for good X.
Demand shifters do not include the
Correct answer(s):
- price of the good.
For a wood furniture manufacturer, an increase in the cost of lumber will cause the supply curve to:
Correct answer(s):
- shift to the left.