Search & Filtering
The park service wants to limit the number of visitors to Bhitarkanika National Park in Odisha to Q*, which is less than the current volume, Qo. It considers two policies: (a) raising the price of admissions and (b) setting a quota. Compare the effects of these two policies on consumer surplus, producer surplus, and welfare. Use a graph to show which policy is superior according to the welfare criterion.
The initial equilibrium is e, where the linear supply curve intersects the linear demand curve. Show the welfare effects of imposing a specific tax τ. Now suppose the demand curve becomes flatter, but still goes through pointe, so that it is more elastic at e than originally. Discuss how the tax affects the equilibrium, CS, PS, welfare, and DWL differently than with the original demand curve.
The park service wants to limit the number of visitors to Bhitarkanika National Park in Odisha to Q*, which is less than the current volume, Qo. It considers two policies: (a) raising the price of admissions and (b) setting a quota. Compare the effects of these two policies on consumer surplus, producer surplus, and welfare. Use a graph to show which policy is superior according to the welfare criterion.
İf the supply curve is q = 3 + 1.5p, what is the producer surplus if the price is 12?
Discuss the main features of the Ricardian Theory of Rent. How do these contrast with the Modern Theory of Rent?
What is a Pareto superior allocation? When is an allocation said to be Pareto improving? At what point is Pareto Efficiency reached.
Suppose that the government decides to issue tradable
permits for a certain form of pollution.
a. Does it matter for economic efficiency whether the
government distributes or auctions the permits?
Does it matter in any other ways?
b. If the government chooses to distribute the permits,
does the allocation of permits among firms matter
for efficiency? Does it matter in any other ways?
The market demand and supply functions for milk are: QD = 58 - 30.4P and QS = 16 + 3.2P.
Suppose a price floor of R1.75 is implemented.
a) Calculate the equilibrium price and quantity that would prevail without the price
floor.[1]
b) Calculate producer and consumer surplus at this equilibrium. [3]
c) Provide a rough sketch of the information calculated in (a) and (b). [2]
d) If this price floor is implemented, how many surplus units of milk are being
produced? [2]
e) How much would government need to spend to purchase the surplus units? [1]
f) What is the change in consumer and producer surplus due to the price floor?[3]
g) When the government regulates the price of a good to be no lower than some
minimum level. Can such a minimum price make producers as a whole worse off?
The market demand and supply functions for milk are: QD = 58 - 30.4P and QS = 16 + 3.2P.
Suppose a price floor of R1.75 is implemented.
a) Calculate the equilibrium price and quantity that would prevail without the price
floor.[1]
b) Calculate producer and consumer surplus at this equilibrium. [3]
c) Provide a rough sketch of the information calculated in (a) and (b). [2]
d) If this price floor is implemented, how many surplus units of milk are being
produced? [2]
e) How much would government need to spend to purchase the surplus units? [1]
f) What is the change in consumer and producer surplus due to the price floor?[3]
g) When the government regulates the price of a good to be no lower than some
minimum level. Can such a minimum price make producers as a whole worse off?
Suppose that the demand curve for wheat is Q=100-10p and that the supply curve is Q=10p.what are the effects of a subsidy (negative tax) of s=1 per unit on the equilibrium government subsidy cost,consumer surplus,producer surplus, ,welfare, and dead weight loss?
