Curse

MMSDome · May 19, 2011, 05:50 PM // 17:50

Hey I am having difficulty on the following questions for homework. Your help would be greatly appreciated!

1.

Suppose the market for semiconductors in the U.S. is characterized by:
Qd = 200 – 40P [Demand]
Qs = 40 + 40P [Supply]
The market for semiconductors in the rest of the world is characterized by:
Qd = 160 – 40P [Demand]
Qs = 80 + 40P [Supply]
Suppose the U.S. government imposes a quota of 16 million units on its imports of semiconductors. Calculate
the magnitude of the deadweight loss resulting from the quota under the assumption that the U.S. is a small
open economy. [Note: P = price per unit; Qd = millions of units demanded; Qs = millions of units supplied]

2.

Suppose the government imposes a price ceiling of $50 on a market
characterized by the following information:
Qd = 700 - 2P Qs = 100 + 4P
Calculate the magnitude of deadweight loss from the price ceiling. Find a price floor that will result
in the same magnitude of deadweight loss. [Note: P = price per unit; Qd = hundreds of units demanded;
Qs = hundreds of units supplied]

Snograt · May 19, 2011, 10:02 PM // 22:02

Good grief Dome - this is your first post in 7 months?

In answer to your question: iunno.

MMSDome · May 19, 2011, 10:13 PM // 22:13

I'm the uncle that only communicates when he needs something