Problems Assignment Example | Topics and Well Written Essays - 750 words

Problems - appellative ExampleSince the producers are producing Q3, their revenue will rise substantially since all their produce is sold off. On the other hand, consumers would only consume Q2 implying that they are in the same position as before. The loss undergo by valuepayers result from the fact that they are the one financing the purchase of the surplus cheese done payment of higher taxes (David, 2003).b) When the price floor is at $10, new market price will be 10 dollars. This is because the price floor is binding. Taking into consideration that the quantity demanded of Frisbees are only 2 one million million million at a price floor of 10 dollars, 2 million is the quantity demanded.The imposition of tax drives a wedge of 2 dollars between the planning and demand. Consumers pay price P2 whereas producers pay P-$2. Due to make up in price, the quantity of beer sold decreases to Q2 (David, 2003).b) The demand curve for typewriters, substitute goods, will shift to the left as a result of decrease in the computer price (David, 2003). thereof increase in the supply of computers will decrease the demand of typewriters. Hence typewriters producers should be sad. Both quantity supplied and price will decrease.d) Yes, the outline do explain why software producer Bill Gates is one of the richest men. With advancement in technology, cheaper computers are made making people want more user-friendly software and operating systems. Thus Bill Gates who produce most popular operating systems and software make a dance orchestra of money from