Homework Answers
Q1) How much is her weekly spending on donuts?
ANS: Qd = 6-2P, where p=$1.
Qd = 6-2(1)=4
Qd = 4. If she buys at regular price (where p=$1 per donut), then her weekly spending would be 4*7=$28.
However, if she buys at discounted price, then her weekly spending would be (14 donuts p=$1, 14 donuts p=$0.5) 14*1 + 14*0.5=$21.
Q2) How many donuts will Amy consume each week? Her weekly consumption is 28 donuts.
Add Answer to:
4. (4 marks) Amy's weekly demand for donuts is given by Q'=6-2P. Donuts are perishable and...
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Suppose the demand curve for a good is given by Q D = 10 - 2P and
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a) (4 points) Find the equilibrium price and quantity in the
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Find the new equilibrium price at
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Suppose the demand curve for a good is given by Q D = 10 - 2P and
the supply curve is given by
Q S = -2 + P.
a) (4 points) Find the equilibrium price and quantity in the
absence of any government intervention.
b) (6 points) Now suppose the government imposes a tax of t = 3.
Find the new equilibrium price at
which the good is sold in the market and the quantity of the...
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