Provide correct answers for these questions.
Needing help with part H-K.
The market for pizzas is represented by the following supply and demand conditions:
QD = 660 - 20P and QS = 40P - 240, where P is price per large pizza and Q measures pizzas per day.
Solve for the equilibrium price and quantity.
Find the inverse demand function.
Find the inverse supply function.
Draw a graph of the supply and demand curves. Label your axes, curves, intercepts, and equilibrium price and quantity.
Calculate the consumer surplus at the equilibrium price and quantity.
Calculate the producer surplus at the equilibrium price and quantity.
Suppose the government places a per unit tax of $1.50 on each pizza sold. This tax will be collected from the producers. Solve for the equilibrium price and quantity. Use the supply and demand curves drawn in part d) to illustrate your answer. Explicitly state in your answer how much the buyer will pay for the pizza and how much the seller will receive (and keep) from a pizza that is sold.(Hint: Draw the impact of the tax on your graph. Or, look in your textbook for a similar problem worked out in detail.)
Calculate consumer surplus after the tax.
Calculate producer surplus after the tax.
Calculate the deadweight loss (DWL) from the tax. Shade the DWL area on your graph.
How much revenue will the government collect with the pizza tax?
The number of contaminated samples in week () is described by a random variable Xi that is assumed to follow a Poisson distribution with probability function fxi(mi) = Pr(Xi = Ti) = ; i = 0, 1, 2...andA > 0 Using a Bayesian analysis and based on a target that the mean number of contaminated samples should remain 0, a >0, 32 0 T(a) ALPHA = 3 BETA = 0.25 5. Explain how the gamma distribution is a conjugate prior for the Poisson model. What are the parameters of the gamma posterior distribution? Samples are collected for n=4 weeks with a mean of 9.5 contaminated samples found per week 6. What are the parameters of the posterior distribution corresponding to these observed data?(20 points) A person with initial wealth of 100 faces a lottery that has a 20% probability of losing 10 and an 80% chance of winning 10. The person's utility function is given by U=4w for w 100. a. What is her certainty equivalent value? b. What is her asking price value for selling the lottery? What is her risk premium? c. A second risk-averse person has the same initial wealth and faces the exact same lottery. His utility function is given by V = 4w for w 100. Which utility function (U or V) exhibits a greater level of risk aversion? Why? d. How would you expect the risk premium associated with utility function V (you need NOT calculate this) to compare with the risk premium you calculated in part b (associated with U)? Why?10) 11) Max has utility from wealth given by u(w) = nil/2. He owns a lottery ticket for a prize of $70, 000. Max is aware that the probability of winning the prize is one in a thousand, otherwise the ticket is worthless. Among the following amounts, which is the minimum amount of money that Max would accept in exchange for his ticket, assuming his current wealth is 0? A. 8 cents b. 80 cents c. 8 dollars d. 12 dollars e. Max would not accept any of the above amounts Bob is an expected utility maximizer, with u(w) : 103/2 his utility from having in dollars with certainty. He is considering buying the lottery ticket from Max. Among the following amounts, which is the maximum amount of money that Bob is willing to pay for Max's ticket, assuming his current wealth is 1000? a. $192 b. $585 C. $219 (1. $700 e. Bob would not buy Max's ticket at any of the above prices 26 A competitive industry is in long-run equilibrium. Market demand is linear, p = a - bQ, where a > 0, b > 0, and @ is market output. Each firm in the industry has the same technology with cost function, c(q) = 42 + q2. (a) What is the long-run equilibrium price? (Assume what is necessary of the parameters to ensure that this is positive and less than a.) (b) Suppose that the government imposes a per-unit tax, f > 0, on every producing firm in the indus- try. Describe what would happen in the long run to the number of firms in the industry. What is the post-tax market equilibrium price? (Again, assume whatever is necessary to ensure that this is positive and less than a.) (c) Calculate the long-run effect of this tax on consumer surplus. Show that the loss in consumer surplus from this tax exceeds the amount of tax revenue collected by the government in the post-tax market equilibrium. (d) Would a lump-sum tax, levied on producers and designed to raise the same amount of tax revenue, be preferred by consumers? Justify your answer. (e) State the conditions under which a lump-sum tax, levied on consumers and designed to raise the same amount of revenue, would be preferred by consumers to either preceding form of tax.1. (25 points) For each of the following scenarios, use a supply and demand diagram to illustrate the effect of the given shock on the equilibrium price and quantity in the specified competitive market. Explain whether there is a shift in the demand curve, the supply curve, or neither. (a) (5 points) An unexpected temporary heat wave hits the East Coast. Show the effect in the ice Cream market in New England. (b) (5 points) The government introduces a tax on ice cream which is paid by producers. What is the effect in the ice cream market? (c) (5 points) China and Mexico are major producers of textiles. Workers in Mexico decide to go on strike. Show the effect on the market for Mexican textiles. (d) (5 points) Show the effect of the situation described in (c) on the market for Chinese textiles. (e) (5 points) Suppose the government imposes a price cap on bottled water. Show the effect in the bottled water market
