Consider a vitamin supplement that is supplied by many different firms. The demand curve is D =16 − 3p and the supply curve is S = −4 + 2p. (a) Find the competitive equilibrium. (b) Compute the consumer surplus and producer surplus. (c) Scientists discover that a vegetable is rich in this vitamin and the vegetable is not expensive at all. As a result, the demand curve shifts to D = 14−4p. The supply curve remains the same. Find the competitive equilibrium after the scientific discovery. (d)Compute the consumer surplus and producer surplus after the scientific discovery. (e) After making the calculation that you just made, Consultant Bob finds that the social surplus decreases after the scientific discovery. Therefore, he concludes that the discovery creates a deadweight loss and is detrimental to the society. Evaluate this argument. (Limited to 200 words.)

[40 marks]Consider a vitamin supplement that is supplied by many different firms. The demand curve is 𝐷 =16 − 3𝑝 and the supply curve is 𝑆 = −4 + 2𝑝.(a) [5 marks]Find the competitive equilibrium.(b) [10 marks]Compute the consumer surplus and producer surplus.(c) [5 marks]Scientists discover that a vegetable is rich in this vitamin and the vegetable is not expensive at all.As a result, the demand curve shifts to 𝐷 = 14 − 4𝑝. The supply curve remains the same. Find the competitiveequilibrium after the scientific discovery.(d) [10 marks]Compute the consumer surplus and producer surplus after the scientific discovery.(e) [10 marks]After making the calculation that you just made, Consultant Bob finds that the social surplus de-creases after the scientific discovery. Therefore, he concludes that the discovery creates a deadweight loss andis detrimental to the society. Evaluate this argument. (Limited to 200

The demand curve is 𝐷 =16 − 3𝑝 and the supply curve is 𝑆 = −4 + 2𝑝.(a) [5 marks]Find the competitive equilibrium.(b) [10 marks]Compute the consumer surplus and producer surplus.

Consider a market with demand curve 𝐷 = 25 − 3𝑝 and supply curve 𝑆 = −4 + 4𝑝. The unit of price is dollar. (a) Find the competitive equilibrium. (b) Compute consumer surplus and producer surplus at the equilibrium. (c) The government decides to impose a tax of $2 per unit. Compute the competitive equilibrium with the tax. (d) Compute consumer surplus, producer surplus and tax revenue at the new equilibrium.

Question 1 Suppose there are two firms in the market of good X. The cost functionof firm 1 is C1(q) = q2, whereas the cost function of firm 2 is C2(q) = 3q2. Suppose thefirms operate in a perfectly competitive market and face a perfectly elastic demand atP = 30. Find the equilibrium quantity produced in this market. (Hint: Obtain eachfirm’s inverse supply curve and then add them horizontally.)

Consider a constant-cost industry that is perfectly competitive and in which the demand curve is downward sloping. Further, starting from a long run equilibrium assume that firms experience an improvement in technology that lowers average total cost but does not change marginal cost. In the long run, we would expect:Group of answer choicesConsumer surplus to increase and producer surplus to remain unchanged.Consumer surplus to decrease and producer surplus to remain unchanged.Producer surplus to increase and consumer surplus to remain unchanged.Producer surplus to decrease and consumer surplus to remain unchanged.More information is required to answer this question.