Given a demand function of P = 104 - 3Qd and supply of P = 29 + 3Qs, the utility function U = Qx0.3Qy(1-0.3) and the consumer budget 125=7Qx +3Qy along with the firm production function Q=K0.3L0.3 with the isocost 24620K+ 10L. The economic growth factor is 1.4. What is the transfer of surplus, between HH and firms in the output market if there is a binding price control at 85,? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).

Given a demand function of P = 104 - 3Qd and supply of P = 29 + 3Qs, the utility function U = Qx0.3Qy(1-0.3) and the consumer budget 125=7Qx +3Qy along with the firm production function Q=K0.3L0.3 with the isocost 24620K+ 10L. The economic growth factor is 1.4. What is the transfer of surplus, between HH and firms in the output market if there is a binding price control at 85,? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 3E

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