nuation in Australia refers to the arrangements which people make to have funds
ID: 1208141 • Letter: N
Question
nuation in Australia refers to the arrangements which people make to have funds available fo uperan Australians cannot access these funds until they retire. Thus, t Treasurer Joe Hockey h the article "Using super to buy first ho r them in retirement. Currently hey cannotu as suggested people should be able to use their superannuation to buy their first homes. Follow the link to read me" published on the Sydney Morning Herald on March 8, 2015. Then answer the questions http://goo.g/Ijyls) Suppose the figure below was to represent the housing market for one bedroom apartments in Sydney. Assume there is no tax or subsidy. The equilibrium price is s400,000 and the equilibrium quantity is 2.000 dwellings. Use the triangle-shaped areas to illustrate the buyers and sellers surplus in equilibrium. Note: pay also attention to the elasticity of demand and supply, you will need this information in the next questions. 7.6. Supply 10Explanation / Answer
Answer7.6: Producer Surplus = (equilibrium Price-0) * (equilibrium quantity)
(400-0)*2000 = $8,00,000
Consumer Surplus = (intercept fo Demand curve-Equilibrium Price) * (equilibrium Quantity)
= (600-400) * 2000 = $4,00,000
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