Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the loss in social welfare when an $8 per unit price floor is imposed on the market.
  • $1
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.
  • $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.
  • $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
  • 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.
  • 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.
  • $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.
  • $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
  • 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
  • $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
  • $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
  • $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.
  • PX = -300 + 0.3333QX.
Given a linear supply function of the form QX S = -10 + 5PX, find the inverse linear supply function.
  • 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.
  • PX = 335 - 0.5QX.
Given a linear demand function of the form QX d = 100 – 0.5PX, find the inverse linear demand function.
  • PX = 200 - 2QX.
Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?
  • It will rise.
An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline, would shift the supply curve
  • up by $1.00.
For a wood furniture manufacturer, an increase in the cost of lumber will cause the supply curve to:
  • shift to the left.