1 answer

4. The diagram below shows supply and demand in a perfectly competitive local market for cubic...

Question:

4. The diagram below shows supply and demand in a perfectly competitive local market for cubic metres (m3) of garden soil. Pr
4. The diagram below shows supply and demand in a perfectly competitive local market for cubic metres (m3) of garden soil. Price is per LLL LLD 10 20 30 40 50 60 70 NO90 100 110 120 Quantity (m' day) a. At the equilibrium market price, determine the following values: - total revenue received by sellers -consumer surplus producer surplus total economic surplus b. Now suppose that sellers in this market cooperate and restrict their total output to 30m3 per day. At the resulting price of $45 per m3, m3, determine each of the same values as in part (a). c. What is the change in consumer surplus when output is restricted? What is the change in producer surplus? d. What is the deadweight loss to the economy in this market when output is restricted? Show the area of this loss in the diagram.

Answers

(as Total Revenue Consumer al Revenue received by sellers = Gole $30x 60 = 11800 sumer I Deadweight surplus ar I ODEF) = X 60

.

Similar Solved Questions

1 answer
7-56 Classification and Deductibility: In each of the following independent situations indicate for the current taxable...
7-56 Classification and Deductibility: In each of the following independent situations indicate for the current taxable year the amounts deductible for AGI, from AGI. or not deductible at all. Unless otherwise stated, assume all taxpayers use the cash basis method of accounting and report using the ...
1 answer
*Note: Please don't use previous solutions answered on cheg, they are incorrect* Question: Georgia, Inc. bought 30%...
*Note: Please don't use previous solutions answered on cheg, they are incorrect* Question: Georgia, Inc. bought 30% of Carolina Company on January 1, 2016 for $225,000. The equity method was used. No amortization was required. In 2016, Carolina shipped to Georgia merchandise with a cost of $12,0...
1 answer
3. Which data set has the smallest standard deviation? A. 0, 1, 3, 5,9 B. 21,...
3. Which data set has the smallest standard deviation? A. 0, 1, 3, 5,9 B. 21, 22, 23, 24 C. 30, 40, 50, 60 D. 121.2, 121.09, 121.4, 122.05 4. Each of 55 subjects tastes two unmarked cups of coffee and says which he or she prefers. One cup in each pair contains instant coffee and the other contains f...
1 answer
If you are using SPSS to conduct a two independent samples t-test, examining the impact of...
If you are using SPSS to conduct a two independent samples t-test, examining the impact of your independent variable of "smoking status" (smoker vs. non-smoker) on your dependent variable of "number of cavities reported in a 3 year period", the variable of "smoking status" wo...
1 answer
Question Three: (8 Points) You are given the following information: a. Salaries earned by employees that...
Question Three: (8 Points) You are given the following information: a. Salaries earned by employees that are unpaid and unrecorded, $2,500. b. Supplies account before adjustments showed a balance of $1,500. The ending inventory of supplies showed $500 of unused supplies still on hand. c. Depreciatio...
1 answer
Latona Hardware store completed the following merchandising transactions in the month of May. At the beginning...
Latona Hardware store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona Hardware showed cash of $5,000 and Common Stock of $5,000. Enter the beginning cash and common stock balances and post the transactions. Problem 5-2A La...
1 answer
A) Why did you select this example? b) What are some of the concepts or ideas that the author is ...
a) Why did you select this example? b) What are some of the concepts or ideas that the author is trying convey or teach with this example? c) Which details or facts of the example are the most relevant and why? d) What alternative policies or measures would you propose to solve the problem or challe...
1 answer
P1= 5 bars, P2 = ?, V1 = .3 m^3 , V2 = .7 m^3, Cv...
P1= 5 bars, P2 = ?, V1 = .3 m^3 , V2 = .7 m^3, Cv = .5 KJ/kgK, dv = 2.5 KJ/kg *du = 2.5 KJ/ Kg PART B(1) A gas mixture expands with a known pressure-volume relation, PVConst. The gas mixture behaves as an ideal gas. The process is polytropic with n=1.3. Kinetic and Potential energy effects are or (...
1 answer
Why does this show that H is a subspace of R3? O A. The vector v...
Why does this show that H is a subspace of R3? O A. The vector v spans both H and R3, making H a subspace of R3. OB. The span of any subset of R3 is equal to R3, which makes it a vector space. OC. It shows that H is closed under scalar multiplication, which is all that is required for a subset to be...
1 answer
In the 1980s land prices in Japan surged upward in a "speculative bubble." Land prices then...
In the 1980s land prices in Japan surged upward in a "speculative bubble." Land prices then fell for 11 straight years between 1990 and 2001. Use graphical analysis to illustrate what happened to land rent in Japan over those 11 years. Instructions: Use the tools provided "1990, 1995, an...
1 answer
A global research study found that the majority of​ today's working women would prefer a better​...
A global research study found that the majority of​ today's working women would prefer a better​ work-life balance to an increased salary. One of the most important contributors to​ work-life balance identified by the survey was​"flexibility," with 41​% of w...
1 answer
Mestion Completion Status: Why did I suggest that the secret to life is electrons and protons?...
mestion Completion Status: Why did I suggest that the secret to life is electrons and protons? A. Because redox reactions are necessary for all of the reactions in live cells and these redox reactions require both H+ and electrons B. Because electrons carry a negative charge and protons have a posit...
1 answer
Form the polynomial given,degree 4 and zeros: i, 1+2i
form the polynomial given,degree 4 and zeros: i, 1+2i...
1 answer
Consider the following sequence of deposits and withdrawals over a period of our years end of...
Consider the following sequence of deposits and withdrawals over a period of our years end of four years? you earn 10% interest on your deposit how much wil you abletow draw at the $1 2 4 1.000 $1.000 $1,500...
1 answer
A while ago, a couple purchased a home with a sales price of $890,000, making a...
A while ago, a couple purchased a home with a sales price of $890,000, making a 15% down payment and financing the rest with a 30-year adjustable rate mortgage fixed at 3.2% for the first seven years. Now that the fixed rate period is up, the couple is facing a higher adjustable rate. They now plan ...
1 answer
1/3 Assigneu: 202.01.10 Due: 2020.01.2 w 1. The total load on the beam is W lbs,...
1/3 Assigneu: 202.01.10 Due: 2020.01.2 w 1. The total load on the beam is W lbs, distributed triangularly. (a) Find an equation for the distributed loading, w(x), in terms of W and L. (b) Integrate the equilibrium equation Elv(x)" = w(x), and use the appropriate boundary conditions to obtain equ...
1 answer
(Figure: AD– AS Model II) Refer to Figure: AD– AS Model II. If the value of...
(Figure: AD– AS Model II) Refer to Figure: AD– AS Model II. If the value of household wealth increases, the _____ curve will shift to the _____. A. SRAS; right B. SRAS; left C. AD; left D. AD; right Aggregate price level LRAS SRAS1 E1 P1 AD1 Y, = potential output...
1 answer
QUESTIONS Which of the following is not something that could be considered part of the transaction...
QUESTIONS Which of the following is not something that could be considered part of the transaction costs involved in two people making an exchange? Ensuring the other participant in the exchange is trustworthy Transferring the product from the seller to the buyer Determining the location of a point ...