Question

Problem 8. Let D(p) - 40-p be the demand function and S(p) - 10 +p be the supply function. (a) Draw these functions on a grap
0 0
Add a comment Improve this question Transcribed image text
Answer #1

a)

b) Set Demand = Supply

40-p=10+p

40-10 = 2p

p = 30/2 = 15

q = 40-15 = 25

c) When demand = 20 units

20 = 40-p

p = 40-20 = 20

d) When P=20, supply would be 10+20 = 30

e) When supply = 20 units

20 =10+p

p = 20-10 = 10

As per HOMEWORKLIB RULES, more than 4 parts are answered

Add a comment
Know the answer?
Add Answer to:
Problem 8. Let D(p) - 40-p be the demand function and S(p) - 10 +p be...
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
  • Problem 8. Let D(p) = 40 - p be the demand function and S(p) = 10 +p be the supply function. (a) Draw these functions o...

    Problem 8. Let D(p) = 40 - p be the demand function and S(p) = 10 +p be the supply function. (a) Draw these functions on a graph. (b) What are the equilibrium price and the equilibrium quantity? (c) Suppose the government does not allow selling more than 20 units of output. At what price would 20 units of output be demanded? (d) How many units of output will be supplied at the price in (c)? (e) At what price...

  • Question 2. (10 points) Suppose the demand and supply curves for units of university credits are...

    Question 2. (10 points) Suppose the demand and supply curves for units of university credits are given by the following equations: D = 5000 - P QS = 3P – 200 where QD is the quantity of credits demanded, Q is the quantity supplied, and P is the price charged for each unit in dollars. (a) (3 points) What is the free-market equilibrium Price and Quantity. (b) (3 points) Suppose that the government wants to make education more accessible and...

  • Question 2. (10 points) Suppose the demand and supply curves for units of university credits are...

    Question 2. (10 points) Suppose the demand and supply curves for units of university credits are given by the following equations: Q D = 5000 − P Q S = 3P − 200 where QD is the quantity of credits demanded, QS is the quantity supplied, and P is the price charged for each unit in dollars. (a) (3 points) What is the free-market equilibrium Price and Quantity. 3 (b) (3 points) Suppose that the government wants to make education...

  • Consider a market for apple with the following supply and demand. Qs = 2 + p...

    Consider a market for apple with the following supply and demand. Qs = 2 + p Qd = 20 p (a) What is equilibrium supply and demand in this market? The government imposed ad-valorem tax of 20% tax rate which is collected from the seller. We want to calculate buyerís burden, sellerís burden, and total tax revenue. Answer the following questions in steps to calculate them. (b) Suppose the tax rate is t. When market price is p, what is...

  • Consider a market for apple with the following supply and demand. Qs = 2 + p...

    Consider a market for apple with the following supply and demand. Qs = 2 + p Qd = 20 p (a) What is equilibrium supply and demand in this market? The government imposed ad-valorem tax of 20% tax rate which is collected from the seller. We want to calculate buyerís burden, sellerís burden, and total tax revenue. Answer the following questions in steps to calculate them. (b) Suppose the tax rate is t. When market price is p, what is...

  • Refer to the graph below for questions 7-9: Price Supply 15 12 Demand 40 50 80...

    Refer to the graph below for questions 7-9: Price Supply 15 12 Demand 40 50 80 104 130 Quantity Suppose the market in the graph is originally in equilibrium at a price of $15. If the government implements a price ceiling at $20, what will be the market outcome? 7. a. Surplus of 90 units b. Surplus of 54 units c. Shortage of 90 units d. Shortage of 54 units e. Market will remain in equilibrium with a quantity of...

  • C. Quantity supplied increases at P. D. Quantity supplied decreases at P. E. None of the...

    C. Quantity supplied increases at P. D. Quantity supplied decreases at P. E. None of the above is correct Question 5-15 In the durian market, the demand curve is given by P = 22 - 20s and the supply curve is given by P = 20. + 6. Answer the following questions Question 5 What is the equilibrium price? The equilibrium price is $7.00. Question 6 What is the equilibrium quantity? The equilibrium quantity is 4. Question 7 What is...

  • 1. Consider a perfectly competitive market with demand curve given by P, 200 D. The industry...

    1. Consider a perfectly competitive market with demand curve given by P, 200 D. The industry supply curve in this market is PsQs (a) Draw the demand-supply graph for this market. Calculate the quantit;y traded, equilibrium price for this market. Also calculate the Total Consumer Surplus (TCS) and Total Producer Surplus (TPS) for this market (b) Suppose that the government is considering a price ceiling, P1 - $20 Find the quantity traded, equilibrium price, TCS and TPS under the price...

  • Supply is P = 40, while demand is P = 20, where P is price in...

    Supply is P = 40, while demand is P = 20, where P is price in dollars and Q is units of output per week. a) Find the equilibrium price and quantity (using both algebra and graphs) b) If sellers must pay a tax of T = $4/unit, what happens to quantity exchanged, the price buyers pay, and the price sellers receive (net of the tax)?

  • Problem 1. Suppose the market demand is given by D(P) = 10 – 2p and the...

    Problem 1. Suppose the market demand is given by D(P) = 10 – 2p and the market supply is given by S(p) = 3p - 5. 1. Draw the supply and demand curves. Determine the equilibrium price p* and the equilibrium output x*. Determine CS, PS, and TS. 2. Explain why TS is maximized at the equilibrium price p*. 3. Suppose government imposed a $0.5 quantity tax. Determine the equilibrium price and the equilibrium output after the tax. Also, determine...

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