Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

1. Assume the government wishes to spur the production of peanuts for their potential usage in making biodiesel in order to reduce our dependence on foreign oil. Further suppose that the market demand and supply for soybean oil are given by QD = 100 - P and QS = 50 + .3P, where Q = barrels of peanut oil, and P = price per barrel.

a. What is the equilibrium price in this market with no government intervention? Show your work.

b. What is the equilibrium quantity in this market? Show your work.

c. Suppose the government decides to create a strategic reserve of peanut oil to increase overall demand, raise the price of peanut oil, and encourage more peanut production. To create the reserve, assume the government buys 10 units of peanut oil each year. What is the new equilibrium price and quantity of peanut oil? describe and show your calculations.

d. What is the estimated yearly cost to the government of this program? describe.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M937911

Have any Question? 


Related Questions in Microeconomics

The global market place selected is mumbaitoolscorp

The Global Market place selected is Mumbai. ToolsCorp Corporation is a fictitious company that does exist anywhere. For the purpose of this course, it is located it in Tennessee. As members of the senior management team ...

Assignmentafter read two articles then answer the questions

Assignment After read two articles then answer the questions below Cellini: - How does Cellini criticize Bandinelli's sculpture Hercules and Cacus (1534)? - What technical difficulties does Cellini encounter in making hi ...

Accounting for decision making- learning objectives- to

Accounting for Decision Making- Learning Objectives- To understand the types of information included in a business case and how the content of the business case will be shaped by the information needs of interested stake ...

Case studyprojectthere is a single case project worth 10 of

Case Study/Project There is a single case project worth 10% of your total grade. This is due on Sunday of week 6 at midnight EST. Select a news article dated within the previous two months, and analyzes the issue using t ...

Assignment lasa the costs of productionjoseph farms inc is

Assignment: LASA: The Costs of Production Joseph Farms, Inc. is a small firm in the agricultural industry. They have asked you to help them complete the limited data they have gathered in an effort to enable effective de ...

Questiondescribe the sydney entrepreneur ecosystem by

Question: Describe the Sydney entrepreneur ecosystem by identifying each component and providing a list and one-sentence description of players in each component. Within the category of investors or startups there are to ...

Discussion questionread the wall street journal article the

Discussion Question Read the Wall Street Journal article, The Dish on Hotel Air, (Goetz, 1999) and review the Pure Solutions website related to ultra clean rooms, assess whether you think the hypoallergenic room concept ...

Q1 show a short run situation where a perfectly competitive

Q1. Show a short run situation where a perfectly competitive firm is earning negative profit but deciding that it would be profitable to continue production for the short run. Include in your graph, ATC, AVC, MC, AR, P, ...

Organization theorythis is the take-home midterm

ORGANIZATION THEORY This is the take-home Midterm Examination. You can use all available information, but are not allowed any exchange of Information between students taking this course. The deadline of HARD COPY submiss ...

Discussion forumtopicsanother reason to hate the yankeesand

DISCUSSION FORUM Topics: Another reason to hate the Yankees...and the Red Sox, the Dodgers, the Cardinals, even the Pirates Yankee Stadium and the Power of Sports Monopolies http://www.realclearmarkets.com/articles/2009/ ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate