Microeconomics Answers

suppose that the government gives rose produces a specific subsidy of s=11 cper stem shows that the original demand and supply curve what is the effect of the subsidy on the equilibrium prices and quantity,Consumer surplus,producer surplus ,WELFARE AND DEAD WEIGHT LOSS?

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 point e, 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.

Suppose that the demand curve is Qd = 120 - 6p and the supply curve is Qs = 18p. Calculate the effects of a specific tax of t=2 per unit on the equilibrium, government tax revenue,consumer surplus, producer surplus,welfare and deadweight loss?

Suppose for a commodity X, demand and supply curves

are given by the equations

(1)

Q d = 4 P

(2)

Q s = 2+P

(i) What is the equilibrium price?

(ii) What is the equilibrium quantity?

What are the advantages and disadvantages of biofuel in terms of addressing the challenge of sustainable development?

Which Change would make the supply of a product more price elastic?

A. an increase in the number of close substitutes for the product

B. An increase in the proportion of firms working at full capacity.

C. A reduction in the time taken to make the product

D. A reduction in the time that the product can be stored

Given the demand and supply function below: q=40-P and q=6P

Find the equilibrium price and quantity

A cob Douglas production function for a firm is given as Q=4L ½K½. The firm has also established that wage rate and interest paid on capital are $3 and $5 respectively for a production period. The firm intents to spend $200 million for the period on production cost. Compute the levels of capital and labor that will maximize output. What is the maximum output?                      (10 Marks)

Is a headache the cost of studying to hard?