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
melamori03 [73]
3 years ago
7

Assume that the market for Good X is defined as follows: QD = 64 - 16P and QS = 16P - 8. If the government imposes a price floor

in this market at $3.00, what will be the total loss in welfare to the economy?
Business
1 answer:
s2008m [1.1K]3 years ago
6 0

Answer:

The total loss in welfare to the economy will be -$32.

Explanation:

By intersecting the supply function QS to the demand function QD, we will find the equilibrium price:

QD = QS

16P - 8 = 64 - 16P

16P + 16P = 64 +8 =

32P = 72

P = $2.00

Replacing the equilibrium price either in QS or QD, we foind the equilibrium quantity:

QS = 64 - 16*2  = 64 -32

QS =  32

In this case the total revenues at the equilibrium price RE will be:

RE = 32 * $2 = $64

On the other hand if the government imposes a price floor at $3.00, then the new total revenues RN will be:

RN = 32 * $3 = $96

Therefore the total losses is find by subtracting the revenue at the goverment price floor RN to the revenue at the equilibrium price RE:

LT = RE - RN

LT = $64 - $96 = -$32

You might be interested in
Roger is almost done with his feasibility study and is concerned about the financing. Up until this point, he has been operating
Andrews [41]

Answer:

True

Explanation:

Hope this helps.

8 0
2 years ago
Harrison is generally satisfied with his current work, but he is not satisfied with how much he is being paid and the benefits h
Lostsunrise [7]

Harrison is generally satisfied with his current work, but he is not satisfied with how much he iAs being paid and the benefits he is receiving. Which type of job satisfaction is low for Harrison is facet satisfaction.

Job satisfaction is described as the level of contentment employees sense with their activity. This goes past their each day obligations to cover satisfaction with team participants/managers, satisfaction with organizational rules, and the impact in their process on employees' personal lives.

Activity pride, job satisfaction, or painting pride is a measure of employees' contentedness with their activity, whether or not they just like the job or character factors or sides of jobs, which includes the nature of labor or supervision. activity pride can be measured in cognitive, affective, and behavioral components.

Job satisfaction is primarily based on how we experience our activity – the good profession additives that make us feel valued or let us feel like we've got a cause, vs. the terrible additives, which include long hours or ugly tasks, or feeling undervalued as a worker.

Learn more about job satisfaction  here brainly.com/question/235909

#SPJ4

8 0
1 year ago
Buying office space is ______________ in the long run-in comparison to leasing. Which is the correct answer?
Vedmedyk [2.9K]

Answer:

less expansive

Explanation:

i took the test. i got it right

5 0
2 years ago
What is the common term for the endline in soccer?
Mama L [17]
It is the goal line that is the common term for endline
8 0
2 years ago
Read 2 more answers
What is the drawback of carrying more inventory than is needed?
lbvjy [14]

Answer:

One of the most important disadvantages of excess inventory is the loss of revenue. Products depreciate over time and lose their initial value. So the longer you hold a product, the cheaper it gets.

7 0
2 years ago
Read 2 more answers
Other questions:
  • How does a diversified investment portfolio reduce investors' risk of losing money?
    6·2 answers
  • Security dealers: are limited to trading non-listed stocks. buy and sell from their own inventory. operate exclusively in auctio
    5·1 answer
  • A CSR should not use email, newsletters, managers and other
    7·1 answer
  • Q6. Explain why most experts believe that official U.S. data underestimate the actual rate of unemployment. What factors could m
    5·1 answer
  • In the Baldrige assessment, _____ refers to how a company refines the approach through cycles of evaluation and improvement, enc
    6·1 answer
  • Adina deposits $1,000 in the bank. The bank can then use her savings to make _____ to/for _____.
    6·2 answers
  • Which term refers to an economic situation where the large amount of money in circulation creates continuous pressure to raise p
    8·2 answers
  • Which speaker is most likely to make high-risk investments?
    8·1 answer
  • The parts can be purchased from an outside supplier for only $28 each. The space in which the parts are now produced would be id
    12·1 answer
  • What was the value proposition of Maggi in India which made it a success but not in Pakistan? What is the better value propositi
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!