Examlex

Solved

The Supply and Demand for Almonds Are QD = 80

question 125

Essay

The supply and demand for almonds are QD = 80 - 10P and QS = 10P, where P is price per bag and Q measures hundreds of bags per day.
a. What are the equilibrium price and quantity?
b. Calculate consumer and producer surplus.
c. Suppose the government imposes a price floor of $7 per bag. Is there a shortage or surplus of almonds? If so, what size is it?
d. Calculate consumer and producer surplus with the price floor.
e. What is the size of the deadweight loss?


Definitions:

Mortuary

A facility where the bodies of deceased persons are prepared for burial or cremation and where funerals might be conducted.

Legal Capacity

Legal capacity is the ability of an individual or entity to enter into legally binding contracts, sue or be sued, and make decisions that carry legal consequences.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and other operational details among partners in a business venture.

Minor Partner

A partner in a business who has not reached the age of majority, limiting their legal capacity and liabilities within the partnership.

Related Questions