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ISL 233 MİKROİKTİSAT
UYGULAMA (8)
10-11 ARALIK 2012
1.
The supply and demand curves for corn are as follows:
QD = 3,750 - 725P
QS = 920 + 690P,
where Q = millions of bushels and P = price per bushel.
a.
b.
c.
Calculate the equilibrium price and quantity that would prevail in the free market.
The government has imposed a $2.50 per bushel support price. How much corn will the
government be forced to purchase?
Calculate the loss in consumer surplus that would occur under the support program.
Solution:
a.
set QD = QS
3,750 - 725P = 920 + 690P
2,830 = 1,415P
P = 2.00
QD = 3,750 - 725(2) = 2,300
b.
Quantity supplied at the support price of $2.50 is:
QS = 920 + 650(2.50)
QS = 2645
Quantity demanded at the support price of $2.50 is:
QD = 3750 - 725(2.50)
QD = 1937.50
Government quantity purchased is then 707.5 bushels.
ARAŞ. GÖR. GÜLÇİN ELİF YÜCEL
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ISL 233 MİKROİKTİSAT
UYGULAMA (8)
10-11 ARALIK 2012
c.
Solve supply and demand for P in terms of Q:
QD = 3750 - 725P
P = 5.17 - 0.0014Q
QS = 920 + 690P
P = -1.33 + 0.00145Q
QD at P = 2.50
QD = 3750 - 725(2.50)
QD = 1937.50
C.S. under free market: = 0.5(5.17 - 2.00) x 2300
C.S. under free market = 3645.5
C.S. under support price: = 0.5(5.17 - 2.50) x 1937.50
C.S. under price support = 2586.56
Price support results in a loss of $1058.94 in consumer surplus.
ARAŞ. GÖR. GÜLÇİN ELİF YÜCEL
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ISL 233 MİKROİKTİSAT
UYGULAMA (8)
10-11 ARALIK 2012
2.
The total cost function for a typical soft coal producer are:
TC = 75,000 + 0.1Q2
where Q is measured in railroad cars per year. The industry consists of 55 identical producers.
The market demand curve is:
QD = 140,000 - 425P,
where P is the price per carload. The market can be regarded as competitive.
a.
b.
Calculate the short run equilibrium price and quantity in the market. Calculate the
quantity that each firm would produce. Calculate producer surplus, consumer surplus,
and total surplus at the equilibrium values. Calculate the firm's profit (or loss).
The Federal government is considering the imposition of a $15 per carload tax on soft
coal. Calculate the short-run equilibrium price and quantity that would exist under the
tax. What portion of the tax would be paid by producers and what portion by consumers?
Calculate the producer and consumer surplus under the tax and analyze the efficiency
consequences of the tax. Calculate the firm's profit (or loss) under the tax. Could the tax
be justified despite its efficiency implications?
ARAŞ. GÖR. GÜLÇİN ELİF YÜCEL
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ISL 233 MİKROİKTİSAT
UYGULAMA (8)
10-11 ARALIK 2012
ARAŞ. GÖR. GÜLÇİN ELİF YÜCEL
4
ISL 233 MİKROİKTİSAT
UYGULAMA (8)
10-11 ARALIK 2012
ARAŞ. GÖR. GÜLÇİN ELİF YÜCEL
5
ISL 233 MİKROİKTİSAT
UYGULAMA (8)
10-11 ARALIK 2012
DÜZELTME
PS = [52497*(205,89+15)] / 2 = 5.798.031,16 (YAMUĞUN ALANINA EŞİT)
TS = 9.040.245,88
TS'deki kayıp = 9.058.775 - 9.040.245,88 = 18529,12
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