Economics....Urgent help needed.

[nitish0810]

Hey friends plz help me in these above question.

(a) The market demand and supply functions for a commodity X are given
by:
Qd = 12,000 – 1,000 P
Qs = -3,000 + 2,000 P
where Qd = quantity demanded, Qs = quantity supplied , P = price
(i) Calculate the equilibrium price and quantity of good X
[2 marks]
(ii) Assume that the above market was operating under perfect
competition and is now converted into a monopoly market
structure.
(a) What is the new price? [5 marks]
(b) What is the loss in consumer’s surplus? [4 marks]
(c) Draw an appropriate diagram (sketch) showing the
equilibrium under perfect competition and under monopoly.
Also, show the deadweight loss resulting from this
conversion.
[4 marks]
(d) Calculate this deadweight loss. [4 marks]
(e) Using efficiency concepts, analyse perfect competition and
monopoly. [6 marks]

Thanks in advance

 

[Aevin]

Dude, you're in A2! Haa! :%)

 

[nitish0810]

ya am doing A-lEVEL Economincs but i want the answer of above questions

 

[Aevin]

Sorry man! It's a hopeless case for me!! :sorry:

 

[raza-rocker]

Hey friends plz help me in these above question.

(a) The market demand and supply functions for a commodity X are given
by:
Qd = 12,000 – 1,000 P
Qs = -3,000 + 2,000 P
where Qd = quantity demanded, Qs = quantity supplied , P = price
(i) Calculate the equilibrium price and quantity of good X
[2 marks]
(ii) Assume that the above market was operating under perfect
competition and is now converted into a monopoly market
structure.
(a) What is the new price? [5 marks]
(b) What is the loss in consumer’s surplus? [4 marks]
(c) Draw an appropriate diagram (sketch) showing the
equilibrium under perfect competition and under monopoly.
Also, show the deadweight loss resulting from this
conversion.
[4 marks]
(d) Calculate this deadweight loss. [4 marks]
(e) Using efficiency concepts, analyse perfect competition and
monopoly. [6 marks]

Thanks in advance

(i) price is $5
(ii)a) new price is $15 also give some explanation with the aid of diagram
b) explain with the aid of diagram and loss in price is paying $10 more and receiving 9000 quantity of goods less
c) show with the aid of diagram . best refernce as and a level economics by colin bemford page 184 fig 10.2
show deadweight loss as a triangle in the diagram , show a leftward shift in the supply curve when a perfectly competitive market turns into a monopoly .
match the new equilibrium in the new supply curve S` to the old supply cuve S , thus a triangle will appper and that is deadweight loss
d) calculate by increase in price and decrease in quantity [the same diagram as with the case of the imposition of an indirect tax]
e) explain the likely effects on the producer and consumer , producer (monopolist enjoy) consumer ( undesireable)
therefore monopoly is not efficient and misallocation of resources will occur therefore perfect competition is efficient and resources are allocated efficiently ... (explain in detail)

and you are welcome

 

[Xenon]

(ii)a) new price is $15 also give some explanation with the aid of diagram

how did you concluded the price.... please show your steps or logics

 

[raza-rocker]

(ii)a) new price is $15 also give some explanation with the aid of diagram

how did you concluded the price.... please show your steps or logics

wht if im wrong .. pls do correct me

 

[Xenon]

wht if im wrong .. pls do correct me

bro how am I supposed to correct you when I even don't know how you did it
actually I'm also bit confused on how to do this thing... I'll answer back when I find anything

 

[Xenon]

I can think of one way but not sure...do you have the answer to, is it something like 7.8 after converting to monopoly

btw, good news is this sort of questions will not come ever in real exam

 

[raza-rocker]

wht if im wrong .. pls do correct me

bro how am I supposed to correct you when I even don't know how you did it
actually I'm also bit confused on how to do this thing... I'll answer back when I find anything

i had applied the concept of price discrimination policy which are used by price to charge high price to consumer who can pay a high price for the limited quantity of goods but on the other hand some consumer will pay less for the same quantity of goods . therefore making maximum profit to the monopoly and in this way they can exploit the market at its fullest . which is you can say is undesirable or not a good thing