Question

Suppose Jim has a demand curve of: and Sam has a demand curve of: oS 6 0.5p. How much is the total demand at a price of $9.00? 1.5 unit(s) (round your answer to two decimal places) How much is total demand at a price of $7.50? units (round your answer to two decimal places).

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Writing the inverse demand functions

For Jim : p = 8-Q

For Sam : .5p = 6-Q

P=12-2*Q

Thus the maximim willingness to pay for Jim is $8, so at price of 9, demand comes from only Sam , hence total demand is Q = 6-.5*9

= 1.5 units

now at price = 7.5, both have a positive demand

So total demand is sum of two individual demands = .5 + 2.25

( 8-.5 + 6-.5*7.5) = .5+2.25 = 2.75 units

Add a comment
Know the answer?
Add Answer to:
Suppose Jim has a demand curve of: and Sam has a demand curve of: oS 6...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • It says the answer is not 0.5. Suppose Jim has a demand curve of: and Sam...

    It says the answer is not 0.5. Suppose Jim has a demand curve of: and Sam has a demand curve of: QS 6 0.5p. How much is the total demand at a price of $9.00?ロunit s round your answer to two decimal places.

  • Suppose that the demand curve for wheat is QP = 400 - 20p and the supply...

    Suppose that the demand curve for wheat is QP = 400 - 20p and the supply curve is QS = 20p. The government provides producers with a specific subsidy of s = $2 per unit. How do the equilibrium price and quantity change? The equilibrium price by $ and the equilibrium quantity responses using real numbers rounded to two decimal places.) by $ units. (Enter numeric

  • Suppose the market was made up of two demanders. Demander 1 has a demand function given...

    Suppose the market was made up of two demanders. Demander 1 has a demand function given by: qp = 100 - 2P. Demander 2 has a demand function given by: qp = 250 - 4P. The horizontal summation of these two demand functions will, when graphed, have a kink (point where the slope changes). Determine the price associated with the kink in the total demand function. (Do not include a dollar sign in your response. Round to the nearest 2...

  • Suppose that Jim uses his budget to purchase 100 units of Good X and 100 units...

    Suppose that Jim uses his budget to purchase 100 units of Good X and 100 units of Good Y. When the price of Good X rises, he purchases 55 units of Good X and 95 units of Good Y. An economist calculates his compensated budget and finds that in that scenario, Jim would buy 60 units of Good X and 105 units of Good Y Calculate the substitution effect Remember to include a negative sign (-) if the effect reduces...

  • Suppose a firm has a cost curve equal to C 7200+150Q. The firm's demand curve is...

    Suppose a firm has a cost curve equal to C 7200+150Q. The firm's demand curve is p-550 2Q. (Round all numeric responses to two decimal places,) If regulators set the price equal to the marginal cost, what would be the firm's loss? $ -7200 If the regulators set the price equal to the average cost, what would be the price? S 190.00 What would be the deadweight loss in this case of average cost price regulation? $

  • Suppose Firm A has a supply curve of and Firm B has a supply curve of...

    Suppose Firm A has a supply curve of and Firm B has a supply curve of How much is the total supply at a price of $4? Tot al supply is thousand units (enter your response as a real number rounded to one decimal place) How much is total supply at a price of $13? Total supply is thousand unts (enter your response as a real number rounded to one deoimal place)

  • A small monopoly manufacturer of widgets has a constant marginal cost of $15. The demand for this firm's widgets is...

    A small monopoly manufacturer of widgets has a constant marginal cost of $15. The demand for this firm's widgets is Q = 110 – 2P Given the above information, compute the social cost of this firm's monopoly power. The social cost is s (Round your response to the nearest penny.) You are given the following information about a monopsonist. The demand is P = 30 - 0.250 the average expenditure curve is AE = 0.5Q, and the marginal expenditure curve...

  • Suppose that the demand curve for wheat is Q=120 - 10p and the supply curve is...

    Suppose that the demand curve for wheat is Q=120 - 10p and the supply curve is Q=10p The government imposes a price ceiling of p= $4 per unit per unit. a. How do the equilibrium price and quantity​ change?  ​(round quantities to the nearest integer and round prices to the nearest​ penny) The equilibrium quantity without the price ceiling is 60 and the price without the price ceiling is ​$6. The equilibrium quantity with the price ceiling is 40. B)...

  • Suppose each of the 1 million Islandian households has the same demand curve for heating oil. How much consumer surplus...

    Suppose each of the 1 million Islandian households has the same demand curve for heating oil. How much consumer surplus would each household lose if it had to pay $2 per gallon instead of $1 per gallon for heating oil, assuming there were no other changes in the household budget? Instructions: Enter your response rounded to two decimal places. $  per year. With the money saved by not subsidizing oil, by how much could the Islandian government afford to cut each...

  • Suppose that the demand curve for wheat is Q 120-10p and the supply curve is Q-10p...

    Suppose that the demand curve for wheat is Q 120-10p and the supply curve is Q-10p The government imposes a price ceiling of p $4 per unit. a. How do the equilibrium price and quantity change? (round quantities to the nearest integer and round prices to the nearest penny) The equilibrium quantity without the price ceiling is and the price without the price ceiling is S The equilibrium quantity with the price ceiling is b. What effect does this ceiling...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT