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Question: the inverse demand function of a group of consumers for...

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The inverse demand function of a group of consumers for a given type of widgets is given by the following expression: 2.2 π=-104 + 2000 (S)
2.3 2.4 and 2.5 Economists estimate that the supply function for the widget market is given by the following expression: 2.3 4-0.2--40 a Calculate the demand and price at the market equilibrium if the demand is as defined in Problem 2.2 b For this equilibrium, calculate the consumers gross surplus, the consumers net surplus, the producers revenue, the producers profit, and the global welfare. 2.4 Calculate the effect on the market equilibrium of Problem 2.3 of the following interventions: a A minimum price of $900 per widget b A maximum price of $600 per widget c A sales tax of $450 per widget. In each case, calculate the market price, the quantity transacted, the consumers net surplus, the producers profit, and the global welfare. Illustrate your calcula tions using diagrams. Calculate the deadweight loss compared to the results of Problem 2.3. Summarize your results in a table and discuss briefly 2.5 The demand curve for a product is estimated to be given by the expression: q 200-π Calculate the price and the price elasticity of the demand for the following values Repeat these calculations for the case where the demand curve is given by the of the demand: 0, 50, 100, 150, and 200. 10000
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