Microeconomics help!!!!?

Posted on 2014-04-16 11:19:00 in Economics by LIVES2LOVE

Please I need help fast on these questions!!!

1.) Consider the market for pizza in San Diego. Suppose the market demand for a large sausage and pepperoni pie is given by Qd = 24 – 1/3P where Qd is the quantity of cheese pies demanded (in hundreds) and P is the price per pie. Suppose the market supply is given by Qs = P – 2, where Qs is the quantity of cheese pies supplied (also in hundreds). What is the equilibrium quantity of pizza that will be exchanged in this market? At what price will pizza sell? What is the price elasticity of supply at the equilibrium price and quantity?

2.) Suppose the pizza lobby (“Big Pizza”) decides to try to convince the San Diego City Council to impose a price control of $22 per pie. Is this a price ceiling or a price floor? What would the economic gains (or losses) to sellers be from this policy? What would the economic gains (or losses) to consumers be from this policy? What would be the economic gains or losses to society be?.

3.Suppose you are an advisor to the California Senate Finance Committee, where senators are debating a proposal to raise liquor taxes to generate revenue to fund public school programs aimed at curbing teen drinking. The Committee determines that it will need to collect $2 million from this new tax in order to meet its funding needs. As an economic advisor, what factors would you urge the Committee to consider when choosing the optimal liquor tax rate? Explain your answer using key economic concepts.

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