If a subsidy of $3 is given to consumers in the market above, what is the new price consumers pay?

Q: Which one of the following statements is incorrect? At equilibrium: A. demand is equal to supply. B.…

A: Equilibrium is a point of rest that is the point from which neither the buyer nor the seller has nay…

Q: Calculate the consumers' surplus at the indicated unit price  p  for the demand equation. HINT [See…

A: Consumer surplus(CS) is the difference between what the buyer expects to pay (area under the demand…

Q: If the price of X decreases and this decreases the demand for Y, then

A: If the quantity demanded of a commodity decrease due to change in the price of another commodity is…

Q: A price ceiling of p=8, if perfectly enforced, will create a shortage equal to 11. shortage equal to…

A: With Price ceiling of p = 8, the set price is binding as it is set below equilibrium price. Price…

Q: If government sets a price ceiling of $8 per unit in the market illustrated in the diagram, the…

A: A price ceiling is a government- or group-imposed price control, or limit, on how high a price is…

Q: The quantity demanded of walnuts is greater than the quantity supplied.

A: Answer for 34th Question The correct option is (d) The quantity demand of  walnuts is greater than…

Q: Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose the following: •x…

A: Given: Current price = $3 Market supply = 4 sandwiches Slope of the supply curve = 2 x = 2 Price…

Q: A Maximum Price set below the equilibrium price is called a______

A: Price ceiling A Maximum Price set below the equilibrium price is called a Price ceiling. The term…

Q: Based on the diagram below, if a $60 per-unit subsidy were implemented in this market, what would…

A: Equilibrium is achieved where the quantity demanded is equal to the quantity supplied. Thus,…

Q: Calculate the effect of a subsidy on the equilibrium price and quantity.

A: The subsidy is a payment by the government to producers for each unit produced. It encourages…

Q: if the equilibrium quantity is 50 units, show on a raph that the difference between the maximum…

A: A supply (ss) curve is a graphical representation of different units of a good supplied by a…

Q: Which change would cause a decrease in price and a decrease in the quantity sold? Pick a,b,c, or d…

A: "Correct answer is option b."

Q: There are 100 sellers in the market for widgets: 40 people are willing to sell a widget at £10 or…

A: The supply curve is a realistic portrayal of the connection between's the expense of a good or…

Q: When quantity supplied and quantity demanded are equal, consumer surplus is equal to

A: Consumer surplus is computed as the difference between the maximum price that a potential consumer…

Q: If the price of hamburger decreases from $3 to $2, then the weekly market quantity supplied will

A: Quantity supplied is the total quantity of products that producers manufacture to sell in the market…

Q: The government is considering levying a tax of $30 per unit on suppliers of either jeans or allergy…

A: Taxes are defined as mandatory contributions levied by the government on individuals and firms. Tax…

Q: Use two market diagrams to explain how an increase in state subsidies to public colleges might…

A: The law of supply establishes the direct and proportional relationship between the price of a good…

Q: A price ceiling will result in a shortage only if the ceiling price is _______________ the…

A: Price controls are those government restrictions that are enforced to regulate the prices of goods…

Q: A consumer is willing to purchase an item for  $30 but he gets item at a market price of $22.…

A: # There is a situation where the consumer has a more willingness to pay for a good then for what he…

Q: Calculate the producers' surplus (in dollars) for the supply equation at the indicated unit price p.…

A: Given: Supply function

Q: Find the consumers surplus at a price level of $6 for the price-demand equation p= D(x) = 20 - 0.05x

A: Consumer surplus is the area between the demand curve and the price line.  Given the price is $6,…

Q: find the producers' surplus under market equilibrium.

A: The producers’-surplus is the area(A) above the supply(SS) curve up to the price(P) line. We have to…

Q: If the UK government paid a fixed subsidy to existing restaurants for each day on which they are…

A: If the UK government paid a fixed subsidy to existing restaurants for each day on which they are…

Q: If the supply and demand functions are given by  p=20e0.4Q and p=100e-0.2Q, respectively, find the…

A: Answer: Given, Supply function: p=20e0.4Q Supply function: p=100e-0.2Q Note: the values will be in…

Q: Two supply curves are as follows: P = 10 + Q and P = 10 + 50Q. If you were going to impose a price…

A: Given supply curves :- P = 10 + Q P = 10 + 50Q

Q: What is the consumer and producer surplus when the price of penicillin remain the same when both…

A: Consumer surplus refers to the difference between the amount which the consumer is willing to pay…

Q: why does a subsidy on a good lower the price consumers pay and raises the price producers recieve?

A: The subsidy refers to the provision of financial assistance to the business or the individual to…

Q: Refer to Figure 4-1. What is the shortage or surplus of butter at a market price of $5 per kilogram?…

A: A surplus is a situation where supply of the good or service exceeds the demand at given price. Here…

Q: please plot a graph showing the effect of a government subsidy on the market for surgical masks.

A: The amount given by the government to the producer is known as a subsidy. The main aim of subsidy is…

Q: The consumer surplus for John is $10 and his maximum willingness to pay for the product is $30…

A: The information being given is:- Consumer surplus = $10 Maximum willingness to pay = $30 We have to…

Q: What effect will each of the following have on the supply of auto tires? The granting of a…

A: Supply of a commodity refers to the relationship between market price and the amount of goods the…

Q: Assume that bread and butter are complementary goods. The government begins to subsidize the…

A: Two goods are complements when they are consumed together.

Q: Consider a consumer who is choosing between All Other Goods (AOG) and food. Suppose the market price…

A: We are going to draw the budget lines as per the various scenarios mentioned in the question.

Q: Consider two substitute products X and Y. Consumers are willing to pay a maximum price of $2 per…

A: Substitute goods are products or items that can be used in replacement, or simple words in place of…

Q: Calculate the producers' surplus (in dollars) for the supply equation at the indicated unit price p.…

A: Producer surplus(PS) refers to the difference between how much a seller(s) is willing to accept for…

Q: Find the producer surplus

A: According to the image given in question: Demand function: Qd=10-3P Supply function: Qs=-3+5P…

Q: Find the consumers' surplus at a price level of $1 for the price-demand equation p=D(x)=20−0.1x…

A: Here, demand function is given as, p=D(x)=20−0.1x To find: consumer surplus at the price of $1.

Q: Suppose the prevailing price is $9 per bushel. Is there a shortage or a surplus in the market?

A: The Last Done Price or any other price determined by the Exchange prior to and/or during the same…

Q: California LifeLine provides discounted home phone and cell phone service to qualified households.…

A: The law of supply and demand is a hypothesis that makes sense of the communication between the…

Q: Calculate the producers' surplus for the supply equation at the indicated unit price p. HINT [See…

A: Given Information: Supply equation P = 90 + q P = 230 First, we need to find the value of q at P =…

Q: Suppose the price of gasoline is $1.60 per gallon. Is the quantity demanded higher or lower than at…

A: Equilibrium is the point of stability at which both the demand and supply forces are in balance.

Q: Equilibrium Price: Skateboards   The demand for your hand-made skateboards, in weekly sales, is q =…

A: Given that: The demand for your hand-made skateboards: q = −2p + 700 The supply of skateboards: q…

Q: Find the consumer surplus if maximum willingness to pay is $48 and market price is $23

A: *Answer:-  Given that the market price= $23 and Consumer's maximum willing price =$48 * If we talk…