Exam 15: Equilibrium-Part A

The demand function for abalone is q = 30 - 9p and the supply function is q = 6p.Suddenly the yuppies discover abalone.The quantity demanded at every price doubles.The supply function, however, remains the same as before.What is the effect on the equilibrium price and quantity?

If a quantity tax is collected from competitive suppliers of a good, placing a tax on the good causes the price paid by consumers to increase more than if the tax had been collected directly from the buyers.

The inverse demand function for cases of whiskey defined by p = 186 - 6q, and the inverse supply function is defined by p = 90 + 2q.Originally there was no tax on whiskey.Then the government began to tax suppliers of whiskey $32 for every case they sold.How much did the price paid by consumers rise when the new equilibrium was reached?

The inverse demand function for cigars is defined by p = 240 - 2q, and the inverse supply function is defined by p = 3 + q.Cigars are taxed at $4 per box.

The inverse demand function for cases of whiskey defined by p = 160 - 6q, and the inverse supply function is defined by p = 61 + 3q.Originally there was no tax on whiskey.Then the government began to tax suppliers of whiskey $27 for every case they sold.How much did the price paid by consumers rise when the new equilibrium was reached?

The demand function for orange juice is q = 269 - 9p and the supply function is q = 9 + 4p, where q is the number of units sold per year and p is the price per unit, expressed in dollars.The government decides to support the price of orange juice at a price floor of $24 per unit by buying orange juice and destroying all that it has purchased.How many units must the government destroy per year?

Schrecklich and Lamerde are two obscure modernist painters, who are no longer alive but whose paintings are still enjoyed by persons of dubious taste.The demand function for Schrecklichs is 200 - 4P_S - 2P_L and the demand function for Lamerdes is 200 - 3P_L - P_S, where P_S and P_L are respectively the price of Schrecklichs and Lamerdes.If the world supply of Schrecklichs is 100 and the world supply of Lamerdes is 70, then the equilibrium price of Schrecklichs is

Schrecklich and Lamerde are two obscure modernist painters, who are no longer alive but whose paintings are still enjoyed by persons of dubious taste.The demand function for Schrecklichs is 200 - 4P_S - 2P_L and the demand function for Lamerdes is 200 - 3P_L - P_S, where P_S and P_L are respectively the price of Schrecklichs and Lamerdes.If the world supply of Schrecklichs is 110 and the world supply of Lamerdes is 110, then the equilibrium price of Schrecklichs is

The inverse demand function for eggs is p = 84 - 9q, where q is the number of cases of eggs.The inverse supply is p = 7 + 2q.In the past, eggs were not taxed, but now a tax of 33 dollars per case has been introduced.What is the effect of the tax on the quantity of eggs supplied?

The demand function for orange juice is q = 247 - 8p and the supply function is q = 19 + 4p, where q is the number of units sold per year and p is the price per unit, expressed in dollars.The government decides to support the price of orange juice at a price floor of $27 per unit by buying orange juice and destroying all that it has purchased.How many units must the government destroy per year?

Daily demand for gasoline at Billy-Bob's Mobile Station is described by Q = 980 - 300p, where Q are gallons of gasoline sold and p is the price in dollars.Billy-Bob's supply is Q = 22,980 + 3,000p.Suppose the state government places a tax of 18 cents on every gallon of gasoline sold.What is the deadweight loss resulting from this tax?

Suppose that King Kanuta, whom you met in your workbook, demands that each of his subjects give him 2 coconuts for every coconut that they consume.The king puts all of the coconuts that he collects in a large pile and burns them.The supply of coconuts is given by S(p_s)= 100p_s, where p_s is the price received by suppliers.The demand for coconuts by the king's subjects is given by D(p_d)= 6,000 - 100p_d, where p_d is the price paid by consumers.In equilibrium, the price received by suppliers will be

The inverse demand function for mangos is defined by the equation p = 91 - 5q, where q is the number of crates that are sold.The inverse supply function is defined by p = + 6q.In the past there was no tax on mangos but now a tax of $44 per crate has been imposed.What are the quantities produced before and after the tax was imposed?

The amount of a good supplied is independent of the price.If a sales tax is imposed on the good, then the price paid by consumers will not change at all.

The inverse demand function for cantaloupes is defined by the equation p = 305 - 5q, where q is the number of units sold.The inverse supply function is defined by p = 8 + 4q.A tax of $45 is imposed on suppliers for each unit of cantaloupes that they sell.When the tax is imposed, the quantity of cantaloupes sold falls to

In a certain kingdom, the demand function for rye bread was q = 181 - 8p and the supply function was q = 13 + 6p, where p is the price in zlotys and q is loaves of bread.The king made it illegal to sell rye bread for a price above 6 zlotys per loaf.To avoid shortages, he agreed to pay bakers enough of a subsidy for each loaf of bread so as to make supply equal demand.How much would the subsidy per loaf have to be?

The demand function for fresh strawberries is q = 200 - 5p and the supply function is q = 60 + 2p.What is the equilibrium price?

The inverse demand function for video games is p = 240 - 2q and the inverse supply function is p = 3 + q.When the government imposes a $6 tax on each video game purchased,

The inverse demand function for lemons is defined by the equation p = 120 - 11q, where q is the number of crates that are sold.The inverse supply function is defined by p = 8 + 3q.In the past there was no tax on lemons but now a tax of $84 per crate has been imposed.What are the quantities produced before and after the tax was imposed?

The price elasticity of demand for a certain agricultural product is constant (over the relevant range of prices)and equal to -1.50.The supply elasticity for this product is constant and equal to 4.Originally the equilibrium price of this good was $15 per unit.Then it was discovered that consumption of this product was unhealthy.The quantity that would be demanded at any price fell by 11%.The percent change in the long-run equilibrium consumption of this good was