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
vfiekz [6]
3 years ago
11

If the domestic demand curve is Equal 20p Superscript negative 0.5​, the domestic supply curve is Equal 5p Superscript 0.5​, and

the world price is ​$7.00​, use calculus to determine the changes in consumer​ surplus, producer​ surplus, and welfare from eliminating free trade. The change in consumer surplus ​(Upper Delta​CS) from eliminating free trade is ​$ nothing. ​(Enter your resp
Business
1 answer:
pishuonlain [190]3 years ago
5 0

Answer:

$52

$ 1.33

  • consumer price will increase
  • consumer surplus will decrease
  • import will decrease
  • reduced export
  • portends gloom for the general outlook for the economy

Explanation:

Given domestic demand curve, S(p) = 20p⁻⁰°⁵

the domestic supply curve S(p)= 5p⁰°⁵

world price is ​$7.00

using  calculus to determine the changes in consumer​ surplus

by consumer surplus means in this case supply exceeds demand

we establish the equilibrium point where the supply and demand functions meet or are equal

solving 20p⁻⁰°⁵ = 5p⁰°⁵

     20/5 = p⁰°⁵/p⁻⁰°⁵

       4 = p⁰°⁵⁺⁰°⁵

      4= p = q which is the quantity produced

     

consumer surplus =  maximum price willing to pay - Actual price

                             = ∫⁴₀  dp dp - p* q

                               =  ∫⁴₀20p⁻⁰°⁵ dp- 7* 4

                              = 20∫⁴₀p⁻⁰°⁵ dp -28

                              = 20/0.5 p⁰°⁵- 28

                              = 40 *4⁰°⁵ - 28 =  $52

producer surplus = it is a measure of producer welfare. It is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive

thus  producer  surplus = p* q - ∫⁴₀  d(s) dp

                                         = 7 * 4 - ∫⁴₀  5p⁰°⁵  dp

                                         = 28 - 5 ∫⁴₀   p⁰°⁵    dp

                                         = 28 -5 *2/3  p¹°⁵  

                                          = 28 -5 *2/3  4¹°⁵

                                          =$ 1.33

welfare from eliminating free trade

  • consumer price will increase
  • consumer surplus will decrease
  • import will decrease
  • reduced exports
  • portends gloom for the general outlook for the economy

You might be interested in
"if Washburn achieves the sales target of 2,000 units at the $349 retail price, what will its profit be?"
dybincka [34]

Answer: $370,000

Explanation:

Your question isn't complete as there were some further questions asked before getting to this question.

The profit from 2,000 units at $349 will be:

Profit = Total revenue – Total cost

Total revenue = (P x Q)

= $349 x 2000

= $698000

Total cost = [FC + (UVC x Q)]=

= [$38,000 + ($145 x 2,000)]

=$38000 + $290000

= $328000

Profit = Total revenue - Total cost

Profit = $698000 - $328000

Profit = $370000

5 0
2 years ago
What rights are used to obtain credit?
larisa [96]
He federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA. & do me a favor and follow me on instagram @thatgirl.nay

4 0
3 years ago
One draw back of mailed marketing surveys is
castortr0y [4]
The answer would be, "<span>Longer response times, sometimes six to eight weeks".</span>
8 0
3 years ago
Read 2 more answers
1. palmer luckey's backers were early adopters who enjoyed becoming part of the development process
garri49 [273]

The answer is a)True.....

8 0
3 years ago
When her company's dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was ba
insens350 [35]

Complete/Correct Question:

When the company's dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was back on schedule. This is an example of ________ power.

a. reward

b. referent

c. legitimate

d. coercive

e. Expertise

Answer:

D, coercive

Explanation:

Coercive power is the ability of a manager to be able to make an employee/subordinate follow orders by the use of force.

In the above question, Melissa withholds payment after her order of dry goods came in late a third time.

Withholding payment forced the supplier to return to the scheduled arrangement of delivery.

Cheers.

4 0
3 years ago
Other questions:
  • Which of the following communication methods would Phil be most comfortable with?As a manager, you want to praise a team member,
    15·1 answer
  • You have a significant amount of debt due to a medical issue. Your job is secured
    5·1 answer
  • A portfolio consists of three index funds: an equity index, a bond index, and an international index. The portfolio manager chan
    5·1 answer
  • Love Company’s accounting records show an after-closing balance of $42,100 in its Retained Earnings account on December 31, 2018
    13·1 answer
  • Dave has been suggested to assume his firm is operating at full capacity and its net fixed assets can be added by any amount. Th
    13·1 answer
  • Fill in the following table by calculating the official unemployment rate and the U-4 measure of labor underutilization.
    6·1 answer
  • Factors of production are a. the physical relationships between economic inputs and outputs. b. the mathematical calculations fi
    11·1 answer
  • To determine the scope of a bookkeeping clean-up engagement, you are reviewing the Client Overview tab for a potential client. Y
    9·1 answer
  • Preparing job order costing journal entries
    13·1 answer
  • _______ is a hybrid ADR in which both parties first submit to mediation for a set period of time (perhaps two business days). If
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!