Cnsider a market where supply and demand are given by qxs , Ask an Expert

Economics

Consider a market where supply and demand are given by QXS = -14 + PX and QXd = 85 - 2PX. Suppose the government imposes a price floor of $38, and agrees to purchase any and all units consumers do not buy at the floor price of $38 per unit.

a. Determine the cost to the government of buying firms’ unsold units.

b. Compute the lost social welfare (deadweight loss) that stems from the $38 price floor.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91275061

Have any Question?Write your Review or question?

Related Questions in Business Economics

How does consumers influence the market price of goods it

How does consumers influence the market price of goods it sells, and what does the term, "market power" means?

The increase in prescription drugs cost increases the drug

The increase in prescription drugs cost, increases the drug companies profit. Should there be restrictions to lower consumer cost and how much of their profit should be reinvested into research and development?

Doing research for insurance rates it is found that those

Doing research for insurance rates, it is found that those aged 30 to 49 drive an average of 38.7 miles per day with a standard deviation of 6.7 miles. These distances are normally distributed. If a group of 60 drivers i ...

Your client is going to be traveling to las vegas in the

Your client is going to be traveling to Las Vegas in the near future and he wants to place some bets on his favorite professional baseball team. To ensure he knows the odds on his bets he wants to know the probability of ...

Define economies of scope is this concept related to

Define economies of scope. Is this concept related to economies of scale? Explain. Define economies of scale. How does this relate to returns to scale?

In a certain city a school administrator hypothesized that

In a certain city, a school administrator hypothesized that students enroll in school within 5 km from their homes. To check this claim you asked 30 student from the said city and you found that the mean distance between ...

A psychologist examining art appreciation selected an

A psychologist examining art appreciation selected an abstract painting that had no obvious top or bottom. Hangers were placed on the painting so that it could be hung with any one of the four sides at the top. The paint ...

A school district is trying to estimate the proportion of

A school district is trying to estimate the proportion of students at the high school who would eat a school breakfast if the cafeteria were opened to students at 6 am. A new employer opened up within the district and th ...

Trans-pacific partnership tppwhat possible impact could

Trans-Pacific Partnership (TPP) What possible impact could this event have on global trade? Provide a credible citation. What is President Trump's position on the TPP? Citation?

To investigate this a random sample of 18 bean leaflets was

To investigate this, a random sample of 18 bean leaflets was taken. The freezing temperatures were: -1.6 -0.9 -1.3 -2.7 -1.9 -2.2 -3.1 -2.3 -2.1 -0.2 -2.7 -2.9 -2.3 -3.8 -3.6 -4.3 -2.0 -3.3. Make a histogram of the data ...

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

Recent Questions

Ask Business Economics Expert