1. Business
  2. Economics
  3. from 8 to 10 if your income is 12000 ur...

Question: from 8 to 10 if your income is 12000 ur...

Question details

from $8 to $10 if your income is $12,000 ur income elasticity of demand as your income increases from $10,000 to $12,000 if the price is $16 (30 points) . Suppose that the demand supply for rice is as follows: Honti The equilibrium price is PE and the equilibrium quantity is Q in free market. (1) What area can represent the consumer surplus and producer surplus (2) If government want to control the rice price le vel at Po, what area can represent the consumer surplus and producer surplus in this case? 3) What kind of policies can fulfill this target? Give some specific example. What is the governments surplus in this case. Draw another graph and color this area. 3 Graph (20 points) . Use D ax falls more heavily on the side of the market that is less elastic. emand and supply diagram and draw graphs to explain why the burden of a 浙江工业大学考试命题纸

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution