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- The task I am struggling with: Determine the supply and demand function and the equilibrium point.Graph the results.Demand. If a given product is priced at $7 per unit, there is a demand for 4 units;if a given product is priced at $6 per unit, there is a demand for 8 units.Supply. If a given product is priced at $9 per unit, suppliers are willing to produce4 units; if a given product is priced at $23 per unit, suppliers are willing toproduce 12 units. Thank you very much.QUESTION 3: Refer to the graph below and answers the following questions. AllI Underling work must be shown to earn full credit. Supply 4 Demand 40 80 120 160 A Refer to the graph above. When the market is in equilibrium, consumer sumplus is equal to: A) 160 B) 320 C) 240 D) 80 B. Refer to the graph above. When the market is in equilibrium, producer surplus is equal to: C) 80. A) 160 B) 240. D) 320. C. Refer to the graph above. With an effective price ceiling at $2, total consumer surplus would be: A) 240 B) 200 C) 160. D) 320. D. Refer to the graph above. The effective price ceiling at $2 increases the amount of a product that consumers buy to120 units, therefore all consumers in this market are better off with the price ceiling at $2. Briefly explain your choice of answer. TRUE ( FALSE ( E. Refer to the graph above. With an effective price ceiling at $2, the reduction in economic surplus and market efficiency would be: A) 0. B) 160 C) 40 D) 80 F. Refer to your answer above. How the…Solve a Consumers' or Producers' Surplus Problem. A sports watch has a price-demand equation given by p= D(z) = 40-2-0174176a dollars, which gives the price per watch when a watches are demanded. The price-supply equation for the watch is given by p= S(x) = 0.6z+4 dollars, which gives the price per watch when z watches are supplied. If the equilibrium quantity is 11, find the consumers' surplus and the producers' surplus. The consumers' surplus is. (Your answer must begin with S.) The producers' surplus is Your answer must begin with $.)
- The following graph plots the weekly market supply curve (orange line) for banana bread in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of banana bread is $2.25 per slice. Then, use the green point (triangle symbol) to shade the area representing additional producer surplus when the price rises to $3.00 per slice. (?) PRICE (Dollars per slice) 9.00 8.25 7.50 6.75 + 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 H 0 + 0 P=$3.00 P=$2.25 Small Economy's Weekly Supply Supply 24 48 72 98 120 144 168 192 216 240 284 288 QUANTITY (Thousands of slices of banana bread) > Initial PS (P=$2.25) A Additional PS (P=$3.00)Question 2 For each of the following events identify which of the determinates of demand or supply are affected. Also indicate whether demand or supply is increased or decreased. Why? People decide to have more children. A strike by aluminum workers rises aluminum prices. Engineers develop new automated technology for use in production. A stock market crash lowers people’s wealth. Batelco increases the prices of mobile services. Diminishing returns mean rising costs while economies of scale mean falling costs. Therefore, a firm cannot be facing both diminishing returns and economies of scale. Do you agree? Why or why not?Find the consumers' surplus and the producers' surplus at the equilibrium price level for the given price-demand and price-supply equations. Include a graph that identifies the consumers' surplus and the producers' surplus. p=D(x) = 80e-0.002x. p= S(x) = 20+ 0.0002x² The consumers' surplus is approximately $ (Round to the nearest dollar as needed.)
- Assume that demand in the market for consoles is QD = 1000 - P and supply is QS = 2P - 200. a) In equilibrium, what will be the price of a consoles? How many units will sell at this price? b) What is the value of consumer surplus at equilibrium? c) What is the value of producer surplus at equilibrium? d) Suppose that the government imposed a $300 price ceiling on consoles. How many units are sold? e) What is consumer surplus now? What is producer surplus? What is the "deadweight İoss" from this policy?A new chemical cleaning solution is introduced to the market. Initially, the demand is QD 1,000 2P and the supply is QS = 100 + P. Determine the equilibrium price and quantity. The government then decides that no more than 300 units of this product should be sold per period, and imposes a quota at that level. How does this quota affect the equilibrium price and quantity? Show the solution using a graph and calculate the numerical answer.At a price of $2.28 per bushel, the supply of a certain grain is 7100 million bushels and the demand is 7700 million bushels. At a price of $2.35 per bushel, the supply is 7500 million bushels and the demand is 7600 million bushels. (A) Find a price-supply equation of the form p = mx +b, where p is the price in dollars and x is the supply in millions of bushels. (B) Find a price-demand equation of the form p=mx+b, where p is the price in dollars and x is the demand in millions of bushels. Р (C) Find the equilibrium point. (D) Graph the price-supply equation, price-demand equation, and equilibrium point in the same coordinate system. (A) The price-supply equation is p = (Type an exact answer.) (B) The price-demand equation is p =. (Type an exact answer.) (C) The equilibrium point is. (Type an ordered pair. Type an exact answer. Use integers or decimals for any numbers in the expression.) (D) Choose the correct graph below. O A. Ap 3- 2- 7000 8000 Q O B. Ap 7000 8000 Q O C. 3 Ap 7000…
- Question#3 Assuming hypothetical equilibrium in Demand/Supply Model of Apples, illustrate impact of following events:Suppose the Doctors recommend eating Apples every morning. The Monsoon rains adversely affect the Apple Harvest. The government announces increase in Wages of workers. The price of petrol in the market comes down. Consumers Income falls during government imposed Lockdowns due to health concerns. Question#4 Given below is the Supply Schedule of Nestle Milk per liter:Price of Milk per liter (in Rs) 100 200 300 400Quantity Supplied per day in liters (in 1000s) 100 200 300 400Use the above data to illustrate the Supply Curve in a graph with complete labels. Assume Rs. 200 is the original price of milk per liter and 200,000 liters is the original quantity of supply. Suppose the price rises from Rs. 200 to Rs. 300, what will be the amount of Quantity Supplied? Illustrate the impact of (C) on the graph.Is this a movement along the supply curve or shift of the curve?At a price of $2.27 per bushel, the supply of a certain grain is 7400 million bushels and the demand is 7500 million bushels. At a price of $2.38 per bushel, the supply is 7800 million bushels and the demand is 7400 million bushels. (A) Find a price-supply equation of the form p = mx + b, where p is the price in dollars and x is the supply in millions of bushels. (B) Find a price-demand equation of the form p=mx + b, where p is the price in dollars and x is the demand in millions of bushels. (C) Find the equilibrium point. (D) Graph the price-supply equation, price-demand equation, and equilibrium point in the same coordinate system. (A) The price-supply equation is p= (Type an exact answer.) (B) The price-demand equation is p= (Type an exact answer.) (C) The equilibrium point is (Type an ordered pair. Type an exact answer. Use integers or decimals for any numbers in the expression.) (D) Choose the correct graph below. O A. Ap В. С. Ap 3- 3 2- X 2- 2- 7000 8000 7000 8000 7000 8000Assume that we are looking at the market for California wine. Assume that the initial equilibrium price is $20 and quantities are 1,000. What would be the impact on this market of a severe drought that destroys 50% of the grapes that are used to make this wine? Supply would shift to the left, a shortage would develope, prices would decrease resulting in higher prices and lower quantity of wine. Supply would shift to the left, a surplus would develope, prices would increase resulting in higher prices and lower quantity of wine. Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and higher quantity of wine. Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and lower quantity of wine.