i. Determine the equilibrium quantity and price in the above market, ii. Explain what will happen if the government imposes a price ceiling of RM10 on the chicken.
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b. The daily market demand and supply for chicken in Kuala Lumpur is given by:
= 16,000 – 1,000P
= 2,000 + 1,000P
The quantity and
i. Determine the equilibrium quantity and price in the above market,
ii. Explain what will happen if the government imposes a
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- Consider the world market for wheat, in which Russia is a larger producer. Suppose there is a major failure in Russia's wheat crop due to a severe drought. Explain the likely effect on the equilibrium price and quantity in the world wheat market. Also, explain why Canadian wheat farmers certainly benefit from this droughtThe total demand for Cement and the total supply of Cement per month in the UAE construction market are as shown in the table below: a) Suppose that the government establishes a price ceiling of Dh 295 per ton for ,Cement. What might prompt the government to establish this price ceiling? Explain carefully the main effects. Demonstrate your answer graphically. b) Next, suppose that the government establishes a price floor of Dh 320 per ton for Cement. What will be the main effects of this price floor? Demonstrate your answer graphically. c) Read the article below that published in Khaleej Times and state who sets the price ceiling in UAE? Also comment briefly on the cement prices in 2008 as compared to present cement prices? and comment if price ceiling action by the Government was / is effective.Question 3 Suppose the demand for a product is given by Q-100-5P, where Qp is quantity per year measured in kilogram and P is the price in AUD per kilogram. The supply curve for this product is given by Qs=4P-8. Answer the following questions and provide a graph illustration. a) Determine the equilibrium price? b) Calculate the elasticity of demand and supply at the equilibrium price. c) Determine the consumer surplus and producer surplus at the equilibrium price? d) Suppose that the government imposes a floor price of A$15 and promises to buy any surplus (e.g., Q³- QD) on the market. Determine the new consumer surplus, the new producer surplus, and the government expenditure of this policy e) Instead of using the floor price, now the government imposes a A$3 tax on each kg sold, determine the market price after having this tax policy. f) Calculate the consumer surplus, producer surplus and tax revenue. g) Using the concepts of demand and supply elasticity, predict which party, the…
- Assume that the market demand for a product is represented by the equation P=50- and its market supply by the equation P = 10 + 2Qs where Qd and are quantity demanded and quantity supplied, respectively, and P is the market price. Determine the equilibrium market price and quantity of the product. Clearly show your steps and calculations .Q3 The market for Nissan Navara has the following demand and supply as scheduled as in Table Q3. Table Q3 Price (Thousand Quantity demanded RM) 92.0 Quantity supplied 120 40 94.0 102 70 98.0 90 85 102 80 95 106 60 104 108 50 112 (i) Sketch the demand and supply curves and determine the equilibrium price and quantity in this market. (ii) If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium?a) What is the Equilibrium Price and Equilibrium Quantity b) If the government imposes a $15 per unit tax on sellers on this good what is the new quantity sold in units, how much will the buyers pay, how much will sellers receive?, and how much will the government receive in tax revenue? c) What is the price elasticity of demand and over this price change? What about the supply? d) Based on the elasticities calculated above, who will bear a greater burden from the tax? Why?
- Suppose the demand and supply of firearms in Jail are given as follows: Demand: P = 630 − 349Q Supply: P = 480 + 2Q in which Q is the quantity of firearms in million units and P is the price per each firearm in Jalian dollars. a. The equilibrium price is [ANS1] Jalian dollars and the equilibrium quantity is [ANS2] million units. b. Suppose the government purchases 10 million units of firearms back from the market. After the government enters the market, on the new demand curve, when the price is 555 Jalian dollars, the total quantity demanded is [ANS3] million units of firearms. c. Suppose the government wants to use such buyback program to reduce the quantity of firearms in the community to zero. The government will need to buy at least [ANS4] million units of firearms from the market and spend at least [ANS5] million dollars. d. Suppose the government wants to use taxation to reduce the quantity of firearms in the community to zero. The government will need to impose a…Consider the demand ftunction for processed pork in Canada, Q, = 796.00 - 37p • 20p, + 3p. + 0.002Y %3D The supply function for processed pork in Canada is: Q = 363.00 + 54p - 60ph pis the price of pork Pp is the price of beof = $4 per kg Q is the quantity of pork demanded Pe is the price of chicken = $3 per kg Y is the income of consumers = $12,500 Ph is the price of a hog = $1.50 per kg (measured in millions of kg per year) Solve for the equilibrium price and quantity for pork. The equilibrium price of pork is S and the equilibrium quantity of pork is milion kg per year. (Enter numeric responses using real numbers rounded up to two decimal places.)4. Given the following demand and supply curves, obtain the market-clearing price and graph the equilibrium quantity. Qs = 50P, +100 la = 1300 - 10PX
- Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown below: Suppose government establishes a price ceiling of $3.70 for wheat. What might prompt it to establish this price ceiling? Explain carefully the main effects. Demonstrate your answer graphically.The demand and supply schedules for gatorade is as follows: Price (Gallons) Quantity Supplied $90 888888 80 70 60 50 40 Quantity Demanded 20 88888 25 30 35 40 55 65 339*** 55 45 35 25 15 What is the equilibrium price of gatorade? What is the equilibrium quantity? The city of Fayetteville is worried about the effectiveness of gatorade in thirst quenching young adults. They set a price floor $20 above equilibrium. How much gatorade is sold? in? Thirsty young adults seekers protest to the decision so the city imposes a price calling $10 lower than the price floor from the previous question. How much gatorade is sold? What effect does this resultScenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? Explain. Show graphically the effect of changes in demand or supply. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.
