2
answers
0
watching
239
views
28 Sep 2019
Consider a market where demand is: P = 6 - Q and supply is S: P = Q.
1)Equilibrium quantity Qe is
a)2
b)3
c)4
d)5
2)Equilibrium price Pe is
a)$2
b)$3
c)$4
d)$5
3)Consumer surplus CS is
a)$0.5
b)$4.5
c)$12.5
d)$16.5
4)Producer surplus PS is
a)$0.5
b)$4.5
c)$12.5
d)$16.5
5)Total surplus TS is
a)$5
b)$7
c)$8
d)$9
6)Construct a budget-neutral subsidy in the above market.
Quantity Qâ is
a)2
b)3
c)4
d)5
7)Post-subsidy producer price Pp is
a)$2
b)$3
c)$4
d)$5
8)Consumer surplus CS is
a)$0.5
b)$4.5
c)$12.5
d)$16.5
9)Producer surplus PS is
a)$0.5
b)$4.5
c)$12.5
d)$16.5
10)Total surplus TS is (do not forget to account for the subsidy expenditure SE)
a)$5
b)$7
c)$8
d)$9
Consider a market where demand is: P = 6 - Q and supply is S: P = Q.
1)Equilibrium quantity Qe is
a)2
b)3
c)4
d)5
2)Equilibrium price Pe is
a)$2
b)$3
c)$4
d)$5
3)Consumer surplus CS is
a)$0.5
b)$4.5
c)$12.5
d)$16.5
4)Producer surplus PS is
a)$0.5
b)$4.5
c)$12.5
d)$16.5
5)Total surplus TS is
a)$5
b)$7
c)$8
d)$9
6)Construct a budget-neutral subsidy in the above market.
Quantity Qâ is
a)2
b)3
c)4
d)5
7)Post-subsidy producer price Pp is
a)$2
b)$3
c)$4
d)$5
8)Consumer surplus CS is
a)$0.5
b)$4.5
c)$12.5
d)$16.5
9)Producer surplus PS is
a)$0.5
b)$4.5
c)$12.5
d)$16.5
10)Total surplus TS is (do not forget to account for the subsidy expenditure SE)
a)$5
b)$7
c)$8
d)$9
Yusra AneesLv10
28 Sep 2019
Already have an account? Log in
