the numbers below are the numbers you plug into the problem First, assume that t
ID: 1183711 • Letter: T
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the numbers below are the numbers you plug into the problem First, assume that there are no restrictions on the market and that the market will achieve its free-market equilibrium. Find . . . a. the market clearing price and quantity. b. the consumers' surplus. c. the producers' surplus d. the total benefit created by the market for consumers and producers. Next, suppose that for some reason, the quantity that may be sold is restricted to the number that was e-mailed to you. Find . . . e. the demand price and the supply price, PD and PS. f. the consumers' surplus. g. the producers' surplus. h. the total benefit created by the market for consumers and producers. i. the deadweight loss that is caused by the quantity restriction. QD = 8950 - 50P QS = 200P - 14800 The quantity restriction for parts e - i is 2800.Explanation / Answer
A)In economics, market clearing refers to either a simplifying assumption made by the new classical school that markets always go to where the quantity supplied equals the quantity demanded; or the process of getting there via price adjustment. B)An economic measure of consumer satisfaction, which is calculated by analyzing the difference between what consumers are willing to pay for a good or service relative to its market price. A consumer surplus occurs when the consumer is willing to pay more for a given product than the current market price. C)In mainstream economics, economic surplus (also known as total welfare or Marshallian surplus after Alfred Marshall) refers to two related quantities. Consumer surplus or consumers' surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay. Producer surplus or producers' surplus is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for. In some schools of heterodox economics, the economic surplus denotes the total income which the ruling class derives from its ownership of scarce factors of production, which is either reinvested or spent on consumption. D)An import quota is a limit on the quantity of a good that can be produced abroad and sold domestically.[1] It is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. If a quota is put on a good, less of it is imported. [2] Quotas, like other trade restrictions, are used to benefit the producers of a good in a domestic economy at the expense of all consumers of the good in that economy.
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