Help me answer the following questions correctly.
Your firm has estimated the following equations:
QD = 5,000?10P
QS = ?600+4P
(a) Graph the supply and demand curves (Hint: remember to use the inverse curves). Make sure
to label correctly and show the optimal price and quantity on the graph (just use P* and Q*).
(b) Using the information given, calculate the equilibrium quantity and price.
(c) Based on the information in (a) and (b), who do you think has more market power in this market? Explain your reasoning.
(d) Calculate the consumer and producer surplus for this market.
(e) Now, assume the government sets a price ceiling of $200. Calculate the new demand and supply then explain if we have a surplus or shortage.
(f) provide a new graph with the demand curve, supply curve, and price ceiling. Label consumer surplus, producer surplus, and deadweight loss.
(g) Calculate the deadweight loss in this market (Hint: use the graph above).
(h) Finally, calculate the new supply and demand if the government instead implements a price floor of $200.
Question 3 I35 Marksl Consider the following market for paper notebooks for students: Price (5 per Quantity Quantity New quantity New quantity calculator) demanded supplied demanded supplied (thousands of {thousands of {thousands of {thousands of notebooks notebooks notebooks per notebooks per per year] per year} year] year) 22 17 8 23 16 10 24 15 12 25 14 14 26 13 15 27 12 18 28 11 20 c. Suppose the prices of iPad and other note-taking devices rise, while the price of pulp (a wood-based material) used in making notebooks falls. Explain how each of these two events will affect the demand or supply of notebooks. Will each increase or decrease demand or supply? Briefly explain. (5 marks). . Suppose that bemuse of the above events the demand shifts by 2 thousand notebooks per year, while supply shifts by 8 thOusand per year. Based on this information and your answer in part c, calculate the new demand and supply schedules {ll in the above table]. You n'th t show or lcul n . What are the new equilibrium price and quantity now? Indicate them in the space below: (7 marks) . Draw a clear demand/supply graph of this market. On your graph show the initial equilibrium price and quantity, and the new equilibrium price and quantity (found in part d}. Label the initial demand and supply curves as D; and 51, and the new curves as D; and 52, respectively. Mark both market equilibriums as E and E2, respectively. (8 marks) The following graph shows the monthly demand and supply curves in the market for teapots. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 100 Market for Teapots Price 30 (Dollars per teapot) Supply Quantity 500 Quantity Supplied Demanded 0 (Teapots) Teapots) PRICE (Dollars per teapot) Demand 50 100 156 200-280 300 390 400 450 500 QUANTITY (Teapots) Type here to searchThe equilibrium price in this market is $50 per teapot, and the equilibrium quantity is 250 teapots bought and sold per month; Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage of surplus, and whether this places upward or downward pressure on prices. Price Shortage or Surplus Amount (Dollars per teapot) Shortage or Surplus (Teapots) Pressure 40 60 Grade It Now Save & Continue Continue without saving Type here to search S acerSuppose as a student of AIBA Savar you are interested to know about the financial situation and quality assurance of the canteen. For that you have to evaluate the "Financial Statements" by ratio analysis. Here the "Balance sheet" & 'Income statement" of a year is given below: Assets (Taka) Liabilities Cash = 30,000 Account payable = 28,000 Account receivable = 7,000 Accrued wages = 10,000 Inventories = 4,000 Accrued taxes = 5,000 Machineries = 25,000 Debt (Long)= 23,000 Amount(Taka) Net Sales 2,50,000 Gross Profit 1,20,000 (-)Total OPERATING EXPENSES 70,000 Net Income Before Taxes 50,000 (-)Taxes on income (15%) 7,500 Net Income After Taxes 42,500 NET INCOME 42,500 Calculate "the net operating profit after taxes (NOPAT)" &" the net operating working capital" to know the financial position of AIBA Savar Canteen's. (5)(20 points) The market inverse demand curve is P(y) = 10 2y, and a monopolist's cost curve is y2 + 2. (a) (b) What output level y maximizes the monopolist's revenue? What output level 3; maximizes the monopolist's prot? Identify which of the two output levels is lower, and explain Why using economic intuition. Suppose a second rm with cost curve y2 + 2 is considering entering the market. If after entry, the rms would compete a la Cournot, What would be the Cournot Nash equilibrium output levels yl and gm of rms 1 and 2? What would be the equilibrium prots for each rm? Will rm 2 choose to enter the market? Suppose that if rm 2 enters, both rms collude, choosing output levels that maxi mize total prots and then split the prots equally between them. What would be the prots to each rm? Will rm 2 choose to enter the market in this case
