What is the value of the price elasticity of demand if the

Question

QUESTION 1: For Questions 1-20, consider a competitive market for a good where the demand curve is determined by the demand function: P=10-2QD and the supply curve is determined by the supply function: P=1+QS. What is the quantity demanded of the good when the price level is P = $4?

QUESTION 2: What is the quantity supplied of the good when the price level is P = $4?

QUESTION 3: At P=$4 there is:

a. Competitive equilibrium in the market;
b. Excess supply in the market;
c. Excess demand in the market;
d. Rationing in the market;

QUESTION 4: What is the value of the price elasticity of demand if the price of the good changes from Po=$4 to Pi=$5? NOTE: Express your answer in NEGATIVE terms.

QUESTION 5: What is the value of the price elasticity of supply if the price of the good changes from Po=$4to Pi=$5?

QUESTION 6: What is the equilibrium quantity level for the good in the competitive market?

QUESTION 7: What is the equilibrium price level for the good in the competitive market?

QUESTION 8: What is the consumer surplus in the competitive market?

QUESTION 9: What is the producer surplus in the competitive market?

QUESTION 10: What is the total surplus in the competitive market?

QUESTION 11: For Questions 11-15, assume a market intervention of the form of price floor. The price floor is set at P=$6. This price floor is binding, so it has an impact on the equilibrium of the economy.
How many units of the good the producers are willing to supply the market at the considered market intervention?

QUESTION 12: How many units of the good the consumers are willing to demand the market at the considered market intervention?

QUESTION 13: How many units of the good are going to be sold in the market at the considered market intervention?

QUESTION 14: What is the value of the Consumer Surplus considering this market intervention?

QUESTION 15: What is the value of the Producer Surplus considering this market intervention?

QUESTION 16: For Questions 16-20, assume a market intervention of the form of a $3 per unit tax on the consumption of the good.
How many units of the good are sold in the market at equilibrium considering this market intervention?

QUESTION 17: How much are consumers going to pay per unit of the good under this market intervention?

QUESTION 18: How much is the per unit amount that producers will receive as payment under this market intervention?

QUESTION 19: How much are the tax revenues under this market intervention?

QUESTION 20: How much is the Dead Weight Loss under this market intervention?

Answer 1

The Questions below are designed to allow individual students to explain their theoretical understanding and numerical application of significant features of competitive market for a good. Please provide me the solution of the two questions illustrated below: 1) Consider a competitive market for a good in which the demand curve is determined by the demand function: P = 10 - 2QD and the supply curve is determined through the supply function: P = 1 + QS. Determine the quantity demanded of good if the price level is P = $4? 2) Find the quantity supplied of good if the price level is P = $4? Students are requisite to make use of course textbook so concepts must come from text all along with other unbiased research based sources. Elucidate your responses to questions posed in step by step format all along with respective graphs and formulas.