The demand and the supply of timber for construction in Australia are given by QD =100 – 20P QS = 5P Suppose there is a strike of loggers, which changes the supply to QS = 4P. Calculate the new equilibrium quantity and use a demand and supply graph to explain how the strike affects the equilibrium price and quantity. After the strike in 2.6, suppose the government subsidizes the buyers s dollars for every unit they purchase. Write the price paid by consumers in the equilibrium as a function of s. Would the government be able to use the subsidy to achieve the surplus before the strike,. If no, explain why. If yes, what should be the value of s?
The demand and the supply of timber for construction in Australia are given by QD =100 – 20P QS = 5P Suppose there is a strike of loggers, which changes the supply to QS = 4P. Calculate the new equilibrium quantity and use a demand and supply graph to explain how the strike affects the equilibrium price and quantity. After the strike in 2.6, suppose the government subsidizes the buyers s dollars for every unit they purchase. Write the price paid by consumers in the equilibrium as a function of s. Would the government be able to use the subsidy to achieve the surplus before the strike,. If no, explain why. If yes, what should be the value of s?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 53P: Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles...
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The
QD =100 – 20P
QS = 5P
Suppose there is a strike of loggers, which changes the supply to
QS = 4P. Calculate the new
the strike affects the
After the strike in 2.6, suppose the government subsidizes the buyers s dollars for every unit they
purchase. Write the price paid by consumers in the equilibrium as a function of s. Would the government
be able to use the subsidy to achieve the surplus before the strike,. If no,
explain why. If yes, what should be the value of s?
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