Assume that a competitive market is currently represented by the following supply and demand equations: ?s=...
Assume that a competitive market is currently represented by the
following supply and demand
equations:
?s= 4? − 40 + 4?
?d= 110 − ? + 5?
P is the price of the product, N is the number of producers, and C
is the number of consumers.
There are currently 10 producers and 2 consumers.
1. (2 Points) Solve for the equilibrium price and quantity given
the current number of producers
and consumers.
2. (2 Points) Write the equilibrium price and quantity in a general
form that allows the number of producers and consumers to vary.
(HINT: your answers will be written as functions of C and
N).
3. (1 Point) How many consumers must enter the market in order for
the equilibrium price to
increase by $1?
4. (1 Point) What effect (in terms of direction and magnitude) does
the exit of one producer
have on the equilibrium quantity?
Can you solve this?
Homework Answers
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Assume that a competitive market is currently represented by the
following supply and demand
equations:
?s=...
Assume that a competitive market is currently represented by the following supply and demand equations: Qs...
Assume that a competitive market is currently represented by the following supply and demand equations: Qs 4P - 404N Qd 110- P 5C Pis theprice of the product, Nis the number of producers, and Cis the number of consumers There are currently 10 producers and 2 consumers. 1. (2 Points) Solve for the equilibrium price and quantity given the current number of producers and consumers. 2. (2 Points) Write the equilibrium price and quantity in a general form that allows...
Please help! Assume that a competitive market is currently represented by the following supply and demand...
Please help!
Assume that a competitive market is currently represented by the following supply and demand equations: Qd 110- P+5C P is the price of the product, N is the number of producers, and C is the number of consumers. There are currently 10 producers and 2 consumers. 1. (2 Points) Solve for the equilibrium price and quantity given the current number of producers and consumers 2. (2 Points) Write the equilibrium price and quantity in a general form that...
The following equations represent the inverse supply and demand functions in the market for Good A:...
The following equations represent the inverse supply and demand functions in the market for Good A: PC =80-1⁄2QD PP =14+QS where PC and PP are the prices paid by consumers and received by producers respectively. QD and QS are the quantities demanded and supplied, respectively. Suppose the government is considering imposing a tax of $6 per unit of Good A. a) Compute the competitive market equilibrium price and output without the tax. b) Compute producer surplus and consumer surplus without...
2. (Total: 15 pts) The following equations represent the inverse supply and demand functions in the market for Good A:...
2. (Total: 15 pts) The following equations represent the inverse supply and demand functions in the market for Good A: PC = 80 - ½ QD PP = 14 + QS where PC and PP are the prices paid by consumers and received by producers respectively. QD and QS are the quantities demanded and supplied, respectively. Suppose the government is considering imposing a tax of $6 per unit of Good A. a) (2pts) Compute the competitive market equilibrium price and...
The market for meat is represented by the following demand and supply equations: Demand: Qp = 400 - 10 P Supply: Qs...
The market for meat is represented by the following demand and supply equations: Demand: Qp = 400 - 10 P Supply: Qs = -200 + 20 ⓇP 1. Draw the demand and supply in the same graph where price and quantity on the vertical and horizontal axis respectively 2. Calculate the equilibrium price and quantity 3. Calculate the Consumer and producer surplus at the equilibrium. 4. What would happened to the new equilibrium price and quantity if the price of...
The following equations represent the inverse supply and demand functions in the market for Good A:...
The following equations represent the inverse supply and demand functions in the market for Good A: PC = 80 - ½ QD PP = 14 + QS where PC and PP are the prices paid by consumers and received by producers respectively. QD and QS are the quantities demanded and supplied, respectively. c) (2pts) Compute the competitive market equilibrium price and output with the tax. d) (4pts) Compute producer surplus and consumer surplus with the tax.e the government is considering...
The following equations represent the inverse supply and demand functions in the market for Good A:...
The following equations represent the inverse supply and demand functions in the market for Good A: PC = 80 - ½ QD PP = 14 + QS where PC and PP are the prices paid by consumers and received by producers respectively. QD and QS are the quantities demanded and supplied, respectively. Suppose the government is considering imposing a tax of $6 per unit of Good A. a) (2pts) Compute the competitive market equilibrium price and output without the tax....
The demand and supply conditions of market for beer are given by the following equations: Qd...
The demand and supply conditions of market for beer are given by the following equations: Qd = 72 - P and Qs = -18 + P a) Find the initial equilibrium price and quantity. b) Calculate the consumer surplus and producer surplus for the equilibrium. c) Suppose that government impose a price floor at P=66 to control the consumption of beer. Is this policy effective? What are price and quantity consumed after this intervention of government? d) Going back to...
1. A market has supply and demand curves that follow the following set of equations: Supply...
1. A market has supply and demand curves that follow the following set of equations: Supply P = 30s + 6 Demand P = -20p + 146. For both of these problems pictures are not required but the problems may be much easier if you draw some. a) Find the equilibrium price and quantity in this market and the consumer and producer surplus from the equilibrium price and quantity. (1 point) b) If there is a ceiling price in this...
The market demand isQd= 15−P, and the market supply isQs=P/2. (a) Assume that the market is...
The market demand isQd= 15−P, and the market supply isQs=P/2. (a) Assume that the market is perfectly competitive. What are the equilibrium price and quantity? (b) Assume that the market is perfectly competitive. What is the equilibrium consumer,producer, and total surplus? (c) In order to support producers by increasing prices, the government imposes a production quota ofQ= 4 units. What will the market clearing price be? At that price,what is the consumer, producer, and total surplus? What is the deadweight...
Assume that a competitive market is currently represented by the following supply and demand equations: Qs 4P - 404N Qd 110- P 5C Pis theprice of the product, Nis the number of producers, and Cis the number of consumers There are currently 10 producers and 2 consumers. 1. (2 Points) Solve for the equilibrium price and quantity given the current number of producers and consumers. 2. (2 Points) Write the equilibrium price and quantity in a general form that allows...
Please help!
Assume that a competitive market is currently represented by the following supply and demand equations: Qd 110- P+5C P is the price of the product, N is the number of producers, and C is the number of consumers. There are currently 10 producers and 2 consumers. 1. (2 Points) Solve for the equilibrium price and quantity given the current number of producers and consumers 2. (2 Points) Write the equilibrium price and quantity in a general form that...
The market for meat is represented by the following demand and supply equations: Demand: Qp = 400 - 10 P Supply: Qs = -200 + 20 ⓇP 1. Draw the demand and supply in the same graph where price and quantity on the vertical and horizontal axis respectively 2. Calculate the equilibrium price and quantity 3. Calculate the Consumer and producer surplus at the equilibrium. 4. What would happened to the new equilibrium price and quantity if the price of...
The demand and supply conditions of market for beer are given by the following equations: Qd = 72 - P and Qs = -18 + P a) Find the initial equilibrium price and quantity. b) Calculate the consumer surplus and producer surplus for the equilibrium. c) Suppose that government impose a price floor at P=66 to control the consumption of beer. Is this policy effective? What are price and quantity consumed after this intervention of government? d) Going back to...
1. A market has supply and demand curves that follow the following set of equations: Supply P = 30s + 6 Demand P = -20p + 146. For both of these problems pictures are not required but the problems may be much easier if you draw some. a) Find the equilibrium price and quantity in this market and the consumer and producer surplus from the equilibrium price and quantity. (1 point) b) If there is a ceiling price in this...
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