Business, 06.03.2020 23:44 DivineMemes420
Price Floor (10 points) The market for Brussels Sprouts in California is represented by the equations below. Q is measured in thousands of bushels. P = 9 - Qd P = 2Qs a. What is the equilibrium price and quantity of brussels sprouts (in thousands of bushels)? b. Graph the two equations, labeling the axes (with units) and equilibrium price and quantity. Imagine the government of California is considering placing a price floor of $8 per bushel on brussels sprouts. C. Is this price floor binding? How do you know? d. What are the quantities supplied and demanded with the price floor? [Hint: you can find Qs and Qd by plugging the new price into the supply and demand equations] e. What type of disequilibrium situation is created, and what is its magnitude? How many thousand bushels of brussels sprouts will be sold under this policy? Now let's look at how Consumer, Producer, and Total Surplus are affected by this policy. f. Without calculating the values, state whether each of CS, PS, and TS will increase, decrease, or stay the same. (Hint: Looking at the areas on the graph can help to determine the changes.] g. Which parties are made better off by the price floor? Who is worse off? h. What is the dollar value of the deadweight loss caused by this policy? (Hint: You can either use the graph to find the area of the triangle, or calculate the change in total surplus.]
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 14:00, breana758
Bayside coatings company purchased waterproofing equipment on january 2, 20y4, for $190,000. the equipment was expected to have a useful life of four years and a residual value of $9,000. instructions: determine the amount of depreciation expense for the years ended december 31, 20y4, 20y5, 20y6, and 20y7, by (a) the straight-line method and (b) the double-declining-balance method. also determine the total depreciation expense for the four years by each method. depreciation expense year straight-line method double-declining-balance method 20y4 $ $ 20y5 20y6 20y7 total $
Answers: 3
Business, 22.06.2019 19:00, sharri44
Read the scenario. alfonso is 19 years old and has a high school diploma. recently, he was promoted to assistant manager at the fast-food restaurant where he has worked since the age of sixteen. his dream is to become the restaurant’s manager. what is his best option for achieving his dream? he should find another job and work his way up to a higher position. he should hope that his manager transfers to another location and that he is his replacement. he should attend classes at the local college to receive training in management. he should work hard, work longer hours, and remain assistant manager.
Answers: 2
You know the right answer?
Price Floor (10 points) The market for Brussels Sprouts in California is represented by the equation...
Questions in other subjects:
