Import cars in equilibrium

When the import car market is in equilibrium prior to the government limits car imports to Q1, the price that buyers will reimburse for an import: (1) Drops/falls from P0 to P1. (2) Is stable, although dealer gains fall by Q0 to Q1. (3) Increases from P0 to P2. (4) Exhibits a subsidy wedge of P2 to P1.

Can someone help me in getting through this problem.

View Complete Question

Related Questions in Microeconomics

Q : Equality between marginal revenue and

If all variable costs can be covered, in that case every firm maximizes profit by adjusting output till: (w) total revenue is maximized. (x) marginal revenue = average cost. (y) average cost = marginal cost. (z) marginal revenue = marginal cost.

Q : Exploitation problem If the resource

If the resource suppliers are paid less than the values of their marginal products [VMPs], then they are stated to be: (i) In equilibrium. (ii) Exploited. (iii) Monopolistic. (iv) Monopsonistic. Can someone please help me in findin

Q : Problem regarding to tax wedges in

In equilibrium, a tax upon a good tends to because of the: (1) supply to exceed the demand. (2) quantity supplied to exceed the quantity demanded. (3) demand prices of consumers to exceed the supply prices of sellers. (4) competitive

Q : Demand for Labor-Monopsony Power When

When wage discrimination is not probable for the first 40 workers this profit-maximizing organization hires, however it can wage discriminate perfectly whenever hiring all the subsequent workers, it hires a net of: (i) Forty workers at an average salary of $700 per we

Q : Long run equilibrium price When

When Christmas tree farming is a decreasing cost industry and this firm is typical, in that case an increase in the market demand for Christmas trees will give in a long run equilibrium price: (1) greater than P1. (2) less

Q : Illustration of Distribution of Income

An illustration of distribution of income in accord along with the contribution standard occurs while: (1) the federal government relies on a very progressive income tax for most of its revenue. (2) production is produced, “from each, according

Q : Marginal resource cost for a monopsonist

Can someone help me in finding out the right answer from the given options. The marginal resource cost for the monopsonist in labor market which can’t wage discriminate: (i) Is perfectly elastic. (ii) Lies above the market supply of labor. (iii) Is perfectly ine

Q : Determine area of maximum profit For

For LoCalLoCarbo maximum profit equals the area of the rectangle as: (1) 0P1bq2. (2) bdP4P1. (3) 0P4dq2. (4) bcP3P1. (5) 0P2fq4.

Q : Capital Labor Ratios and Income Assume

Assume that half of the world population, randomly certain, was magically vaporized through space aliens, although no other aspect of life onto Earth was influenced. Ignoring any psychological trauma that calamity might entail, upon average, the economic

Q : Total revenue for profit-maximizing

TR (total revenue) for this profit-maximizing pure competitor equivalents area: (i) 0PeQ. (ii) bPec. (iii) aPed. (iv) 0bcQ. (v) 0Pec.

Discover Q & A

Leading Solution Library

Avail More Than 1455991 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1960257
Asked

3,689

Active Tutors

1455991

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment