SECTION A QUESTION ONE: Use the diagram below to calculate total consumer-surplus at a price of $8 and production of 8 Million metric tons of barley per day. For the same equilibrium calculate total producer-surplus. If price remained at the $8 but production was cut to 4 million metric tons per day, calculate producer-surplus and consumer-surplus. Also, carefully calculate the deadweight loss due to under production. $14 12 10 8 4 8 10 S D Q
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- What is Producer Surplus at a price of $5? Price 12 10 8 6 42 Quantity Demanded 1 2 WN 3 456 Quantity Supplied 6 5 4 3 2 1If a $6 per unit tax is introduced in this market, then the price that consumers pay will equal producers receive net of the tax will equal_ 12 11 10 9 8 7 6 5 4 10 20 30 40 50 60 70 80 90 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer a and the price thatⒸMacmillan Learning (Figure: Market for Sustainable Furniture) Consider the market for furniture made from sustainable, man-made forests that is shown in the figure. The government wants to encourage buyers to buy such furniture and places a price ceiling of $250 thousand pieces of on the market. The market quantity actually sold after implementation of the price ceiling is furniture.T Price ($ per piece of fumiture) $350 $250 $100 Ⓒ700 300 O 500 350 300 500 Supply Demand 700 Quantity of fumiture pieces (thousands)
- 16. What is the difference between an agricultural export subsidy and an agricultural production subsidy?Price te ng 20 18 16 14 12 10 8 6 4 O -~ 2 8 10 Quantity What is the amount of producer surplus after the government imposes the excise tax on the market? C Multiple Choice ооо 4 $40 $32 $9 $7 6 12 14 S₂ 16 SQuestion 4 Figure 6-20 30 16 24 18 Price 12+ 6+ $8 O $6 $2 80 O $4 160 210 240 Supply D₂ Refer to Figure 6-20. What is the amount of the tax per unit? D₁ 320 Quantity
- olent comic book) $10- 9. 001 10 V $10, $4 $8. $4 $8, 58 4321 $₂ S₁ ( 1 2 3 4 5 6 7 8 9 10 Once a quota is imposed on violent comic books at two sales per day, producer surplus is $4, $10 Quantity of violent comic books/day and deadweight loss isuse diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?Fig 1 shows a domestic market of a gadget. The horizontal axis shows the quantity (count) and the vertical axis price ($). 15 Demand 10- Supply 10 15 Quantity What is the change in consumer surplus due to the $1 tariff? O-7.5 O-2.5 2.5 O75 Price
- Title Calculate consumer surplus for a demand curve like the one just describedexcept that the buyers’ reservation prices for each unit are $2 higher thanbefore, as shown in the graph below. Description Calculate consumer surplus for a demand curve like the one just describedexcept that the buyers’ reservation prices for each unit are $2 higher thanbefore, as shown in the graph below.If a $6 per unit tax is introduced in this market, then the price that consumers pay will equal, producers receive net of the tax will equal and the price that 12 S 11 10 B 6 10 20 30 40 50 60 70 80 90S. $24 $15 D Quota 430 620 800 1170 How much is the decrease in consumer's surplus as a result of Quota?