The demand for rides during Coachella is given by QD=4000-10P. Suppose supply is given by Qs=15P. Many consumers want rides and many drivers are willing to supply rides, so we can treat the market for rides as a competitive market. If Uber sets the price at the competitive market price, the price is 160 v. Total surplus (consumer plus producer surplus) is If Uber instead sets the price at that assumes `regular' demand, QD=2000-5P, the deadweight loss is
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- Please helo me with this question There are 50 residents that live in a small town in California. Each resident uses electricity and there is one power station that produces electricity for the residents from coal. Each residents' demand for electricity is Q = 10 - 2P and the supply function for the power plant is Q = 150P. For each unit of electricity that the power station produces, there is a corresponding release of pollution that leads to asthma and other health problems for the 50 residents. The marginal damage of each unit of electricity produced, per person, is $.05. a. What is the market equilibrium price and quantity per unit of electricity? b. What is the efficient Pigouvian tax per unit of pollution? c. The government of this small California town decides to impose the efficient Pigouvian per unit tax on the power station. What is the new social optimum price and quantity per unit of electricity? d. What is the government tax revenue? e. What is the gain in total…There are two person in the cmmunity. Jack who has demand given as Pj=20-0.25qj and Mary demand given as Pm = 35-0.4qm. if the MC =15 Draw the two demand curves and market demand curves in the same graph Find the efficient market allocation Estimate the efficient price and determine the free riding.Consider the market for CD players, illustrated in the figure to the right. Suppose there are network externalities in this market such that the quantity of a good demanded grows in response to the growth of purchases by other individuals (as indicated by the demand curve "Demand" in the figure). Suppose that the price is initially $130 where the quantity demanded is 60 (thousand CD players per month). 200- Do 180- 160- Demand 140- If the price of CD players falls to $90, demand will increase to thousand CD 120- players per month. (Enter your response using an integer.) 100- 80- 60- 40- Do P120 20- 0+ 20 40 60 80 100 120 140 160 180 200 220 CD Players (thousands per month) Price
- Consider a market for rides (as in the market that Uber operates). Demand for rides is given by QD=120-2P. Supply of rides by drivers is given by Qs=10P. The equilibrium price in this market is 10 The consumer surplus is The producer surplus is v. Note that producer surplus is calculated in the standard way. Some of it goes to drivers and some to Uber. The total surplus is Suppose now that Uber sets the price of a ride at $12. The quantity of rides in the market is now The consumer surplus is now The producer surplus is now v (still calculated in the standard way). Assuming Uber's revenue is 20% of ride revenue, their revenue at the equilibrium price is v and at a price of $12 isThe accompanying diagram shows the demand and supply curves for taxi rides in New York City. Uber's entry into the market reduces the quantity of rides demanded from taxis at every price. On the accompanying graph, shift the demand curve to accurately represent the change in demand. Then, move point E₁ to the new equilibrium point. The unlabeled point is to help you answer the next question and is not movable. Assume that New York City politicians respond by imposing a regulated price of $2.50 per mile. Calculate consumer surplus, producer surplus, and total surplus for the taxi market after Uber has entered the market. Consumer surplus: $ Producer surplus: $ Total surplus: $ million million million Price ($ per mile) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 0 2.50 1.30 240.00 600.00 D S 120 240 360 480 600 720 840 960 1,080 1,200 Quantity of taxi rides (millions of miles)Many governments subsidise electric vehicles. Draw two sup- ply and demand diagrams (one for electric vehicles and one for petrol- powered vehicles) to show the impact of an electric vehicle subsidy. As- sume that an increase in electric vehicles sales reduces petrol powered vehicles by the same amount. On these diagrams show: (a) The quantity of both types of vehicles before the subsidy. (b) The quantity of both types of vehicles after the subsidy. (c) The deadweight losses in both markets before and after the subsidy. 4. is a fuel excise or an electric vehicle subsidy a better policy response to address externalities associated with driving? Your answer should draw on the answers above and could also include: Which policy is simpler to administer. How the two policies impact use of other forms of transport (like public transport or riding a bike). Which policy is fairer. Any additional information that you would like to know to inform your decision Note:- Do not provide…
- Utilize the following graph of the medical doctor services market, in which there is a third-party present (insurance company), to answer the following question: P 180 100 20 40 ● 72 Question: Suppose that co-payments are set at $20 per doctor visit and quantity demanded is 72 from patients. In order for doctors to supply 72 doctor visits the price has to be $180. In a regular market (no third-party) the equilibrium price is $100 and the quantity is 40. Why is there a difference between a regular market and a third-party payer market in regards to total costs? What is the difference? All of the available answers are correct. D In third-party payer markets, consumers do not have to pay the full costs of their consumption. This induces people to have lower quantity demanded than otherwise would be the case in a regular market. Therefore total costs increase under a third-party payer market compared to a regular market. The difference in this case is $12,960. In third-party payer markets,…When focusing on Uber, what are some reasons that the demand curves may be constantly shifting? Give a specific example of something that would be moving the demand curve and how it moves it.(i.e weather,....)Consider the market for hyperbaric chambers. The market price of each hyperbaric chamber is $340,000, and each consumer demands no more than one hyperbaric chamber. Suppose that Darnell is the only consumer in the hyperbaric chamber market. Their willingness to pay for a hyperbaric chamber is $595,000. Based on Darnell's willingness to pay, the following graph shows his demand curve for hyperbaric chambers. Shade the area representing Darnell's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dollars) 680 595 510 425 340 255 dual demand and cons mer surplu 170 85 0 0 1 Darnell's Demand 2 3 Market Price QUANTITY (Hyperbaric chambers) 4 Darnell's Consumer Surplus ?
- Consider the market for hyperbaric chambers. The market price of each typerbaric chamber is $110,000, and each consumer demands no more than one hyperbaric chamber. Suppose that Hubert is the only consumer in the hyperbaric chamber market. Their willingness to pay for a hyperbaric chamber is $275,000. Based on Hubert's willingness to pay, the following graph shows his demand curve for hyperbaric chambers, Shade the area representing Hubert's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dolla 4400 275 A 220 305 11 Hubert's Demand Market Price Hubert's Consumer SurplusLewis University + F3 X Problem 2 Student X -us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/5dfaf8e708673/1358081?X-Blackboard-Expiration= + //c a C. If the price of donuts rose to $0.40, how many donuts would she purchase now? What would happen to Tammy's consumer surplus? Content You are an advisor to the Indian government. Until now, government policy in India has been to severely limit imports into India, resulting also in a low level of hidian exports. The government is considering a policy shift to much freer trade. 1/1 CD A [T Based on what you have learned so far about the benefits of international trade, give at least three arguments to support free trade. C ra X LP A Bb 1358081 FO P F10 0:- F11Suppose the local lake has a population of 200 trout at the beginning of the fishing season. If the population at the end of the season is below 100, fishing won't be allowed next year to allow the population to recover. Three people live on the lake. Abhi's demand for fish is QA=40-P; Bea's demand is Qg=30-0.2P; Charlie's demand is Qc=50-2P. If fishing is free (P=0), there will be fish remaining at the end of the season, and the lake will be open • for fishing next year. Suppose the local government wants to ensure that there are 100 fish left in the lake at the end of every season. Then the government should impose a fee of $ per fish.