In countries like _____________ the command economy predominates.
1 answer:
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Answer: Hello your question is poorly written attached below is the complete question
answer:
a) Cs = 800,000 , Ps = 1,500,000
b) Cs = 1437500, Ps = 525,000
Explanation:
Demand function ( Qd ) = 200,000 - 4000 P
supply function ( Qs ) = 20,000 + 2000 P
at equilibrium : 200,000 - 4000P = 20,000 + 2000P
therefore ; P = 180,000 / 6000 = 30
Q = 20,000 + 2000 ( 30 ) = 80,000
<u>a) Determine consumer and producer surplus in the market</u>
consumer surplus ( Cs ) This is the area above the price and below the demand curve = 1/2 * ( 50 - 30 ) 80,000 = 800,000
producer surplus ( Ps ) This is the area above supply and below price
= 30 * ( 80,000 ) - 1/2 (80,000 - 20,000 ) (30)
= 1,500,000
<u>b) Determine the new levels of consumer and producer surplus with a price ceiling of $15 </u>
Pc (ceiling price ) = $15
Qd = 200,000 - 4000 ( 15 ) = 140,000
Qs = 20,000 + 2000 ( 15 ) = 50,000
∴ New consumer surplus = area ( a , Pc, b, d )
= ( 30 - 15 ) (50,000) + 1/2(50-30) (80,000) - 1/2 (80,000 - 50,000 ) (37.5 - 30)
= 1437500
New producer surplus = area ( Pc , b, e 0 )
= ( 15 ) ( 50000) - 1/2 ( 50,000 - 20,000 ) (15)
= 525,000
Answer: <em><u>Cash to be distributed to Harding = $ 17000, Jones = $ 3000 </u></em>
Explanation:
It has been indicated that the ($9,000) deficit will be covered with a forthcoming contribution
∴ The Remaining Capital Balance is = (24000 + 24000) = $48000
∵Total cash Available = $20000
Loss = 48000 - 20000 = $ 28000
Loss will be shared between Harding & Jones in ratio = 16:48
∴ Harding Capital balance = = $ 17000
∴ Jones Capital balance = = $ 3000
Cash will be Distributed in their capital balance ratio
Therefore,
<u><em>Cash to be distributed to Harding = $ 17000, Jones = $ 3000 </em></u>