1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dsp73
3 years ago
15

The market for plywood is characterized by the following demand and supply equations: QD = 800 – 10P and QS = 50P – 1,000, where

P is the price per sheet of plywood and Q measures the quantity of plywood. What is the size of the deadweight loss if the government imposes a price ceiling of $25 per she
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
7 0

Answer:

$3,750

Explanation:

at $25 per sheet of plywood:

total demand = 800 - (10 x 25) = 800 - 250 = 550

total supply = (50 x 25) - 1,000 = 1,250 - 1,000 = 250

the equilibrium price is:

800 - 10P₁ = 50P₁ - 1,000

1,800 = 60P₁

P₁ = 1,800 / 60 = 30

the equilibrium quantity (Q₁) is:

Q₁ = 800 - (10 x 30) = 800 - 300 = 500

at 250 units, the price should be:

250 = 800 - 10P₂

10P₂ = 550

P₂ = $55

total deadweight loss = 0.5 x  (P₂ - P₁)  x (Q₂ - Q₁) = 0.5 x  ($55 - $25)  x (250 - 500) = 0.5 x $30 x -250 = -$3,750

You might be interested in
Explain how<br> Globalization<br>can impact a labor market.​
Romashka-Z-Leto [24]
It’s clearly contributing to increased integration of labor markets and closing the wage gap between workers in advanced and developing economies, especially through the spread of technology. It also plays a part in increasing domestic & income inequality ^^
3 0
3 years ago
Iris Company has provided the following information regarding two of its items of inventory at year-end: There are 160 units of
maw [93]

Answer:

$7,840

Explanation:

The inventory of Items A and B should be valued at the lower of cost and the net realizable value.

The cost is the invoice price at time of purchase ,while the net realizable value is the selling price less to sell

Products              Cost          Selling price cost to sell NRV    unit value

   A                         $18               $22                $6     $16             $16

   B                          $48              $54                $4    $50             $48

Item A is valued at $16 each i.e $16*160=$2,560

Item B is valued at $48 each i.e $48*110=$5,280

total value of inventory                             =$7,840

The ending inventory valued at the lower of cost or net realizable value is worth $7,840

6 0
3 years ago
Which type of account will typically have the highest interest rates
anyanavicka [17]
The correct answer is <span>Certificate of Deposit 

</span>
4 0
3 years ago
A reduction in U.S net exports would shift U.S. aggregate demand a. leftward. In an attempt to stabilize the economy, the govern
dimulka [17.4K]

Answer:

A reduction in U.S net exports would shift U.S. aggregate demand goes d. leftward. In an attempt to stabilize the economy, the government could decrease expenditures.

Explanation:

Decrease in net exports shifts the AD curve leftward and to stabilize the economy government should cut taxes.

8 0
3 years ago
Students who live on campus and purchase a meal plan are randomly assigned to one of three dining halls: the Commons, Northeast,
Brut [27]

Answer:

What is the probability that the next student to purchase a meal plan will be assigned to the Commons?a. 0.33

Explanation:

P(A) = (No. of ways A can occur)/(Total no. of possible outcomes)

P=1/3

P=0,333

5 0
3 years ago
Read 2 more answers
Other questions:
  • Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expec
    12·1 answer
  • Home Baked Bread Company hires Craig to sell the company's products in a certain area. Home Baked Bread agrees to pay Craig a sa
    12·1 answer
  • Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. The dollar amo
    5·1 answer
  • A 4-year project has an annual operating cash flow of $49,000. At the beginning of the project, $4,000 in net working capital wa
    11·1 answer
  • If the returns on a stock index can be characterized by a normal distribution with mean 12% and standard deviation of 3%, the pr
    11·1 answer
  • Oxygen Optimization is considering the caffeine project, which would involve selling caffeinated oxygen for 1 year. The firm exp
    11·1 answer
  • The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2016, the end of the year, and its revenue and
    15·1 answer
  • Consider a product with a daily demand of 400 units, a setup cost per production run of $100. Monthly holding cost are 15%. Unit
    13·1 answer
  • It will not let me see the answers so this is garbo sorry for the rude comment it is just that this will not show me the answer.
    9·2 answers
  • HELP QUICK PLEASE!!!!! William is not generally a risk-taker, but he knows he may need to step out of his comfort zone to make e
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!