Question
Hi there, I need help with theses questions. Please explain in full detail. Thank you Q1) If the inverse demand function for toasters is p
Hi there, I need help with theses questions. Please explain in full detail.
Thank you
Q1) If the inverse demand function for toasters is p = 60 - Q , what is the consumer surplus if price is 30?
Q2)If the inverse demand function for books is p = 60 - Q and the supply function is Q = p , what is the initial equilibrium? What is the welfare effect of a specific tax of t = $2?
Q3) Suppose that the demand curve is Q = 100 - 10 p and the supply curve is Q = 10 p . The government imposes a price ceiling of p = 3.
a. Describe how the equilibrium changes.
b. What effect does this ceiling have on consumer surplus, producer surplus, and deadweight loss?
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