Exercise 3.2: Single Unknown 2. Let the demand and supply function be as follows: a) Q_d=...
Exercise 3.2: Single Unknown 2. Let the demand and supply function be as follows: a) Q_d= 51 – 3P b) Q_d=30-2P Q_s=6P-10 Q_s=-6+5P Find P* and Q* by elimination of variables. (Use fractions rather than decimals) 4. If (b + d) =0 in the linear market model, can an equilibrium solution be found by using (3.4) and (3.5)? Why or why not?
3.4 Answer: P*_1 = 3 6/17 P*_2 - 3 8/17 Q*_1 = 11 7/17 Q*_2 = 8 7/17
3.5 Answer: Y *= (a-bd + I_0 + G_0)/[1-b(1-t)] T* = [d(1-b)+t(a+I_0+G_0)]/[1-b(1-t)] C* = [a-bd+b(1-t)(I_0+G_0)]/[1-b(1-t)]
Homework Answers
Add Answer to:
Exercise 3.2: Single Unknown 2. Let the demand and supply
function be as follows: a) Q_d=...
Exercise 3.2: Single Unknown 2. Let the demand and supply function be as follows: a) Q_d=...
Exercise 3.2: Single Unknown 2. Let the demand and supply function be as follows: a) Q_d= 51 – 3P b) Q_d=30-2P Q_s=6P-10 Q_s=-6+5P Find P* and Q* by elimination of variables. (Use fractions rather than decimals) 4. If (b + d) =0 in the linear market model, can an equilibrium solution be found by using (3.4) and (3.5)? Why or why not?
Homework Problems (Ch 2&3) Module 1 – Week 1 Exercise 2.5: Function and exponents 1. Graph...
Homework Problems (Ch 2&3) Module 1 – Week 1 Exercise 2.5: Function and exponents 1. Graph the functions a) y = 16 + 2x b) y = 8 – 2x c) y = 2x +12 (In each case, consider the domain as consisting of nonnegative real numbers only) 5. Condense the following expressions: b) x^a\times x^b\times x^c c){\ \ x}^3\times y^3\times z^3 6. Find: b) \left(x^{1/2}\times x^{1/3}\right)/x^{2/3} Exercise 3.2: Single Unknown 2. Let the demand and supply function be as...
Homework Problems (Ch 2&3) Module 1 – Week 1 Exercise 2.5: Function and exponents 1. Graph...
Homework Problems (Ch 2&3) Module 1 – Week 1 Exercise 2.5: Function and exponents 1. Graph the functions a) y = 16 + 2x b) y = 8 – 2x c) y = 2x +12 (In each case, consider the domain as consisting of nonnegative real numbers only) 5. Condense the following expressions: b) x^a\times x^b\times x^c c){\ \ x}^3\times y^3\times z^3 6. Find: b) \left(x^{1/2}\times x^{1/3}\right)/x^{2/3} Exercise 3.2: Single Unknown 2. Let the demand and supply function be as...
2. Let the demand and supply functions be as follows: (a) Qd-51 – 3P (6) Qd...
2. Let the demand and supply functions be as follows: (a) Qd-51 – 3P (6) Qd = 30 – 2P Qs = 6P - 10 Qs = -6 +5P find P* and Q* by elimination of variables. (Use fractions rather than decimals.) 3. According to (3.5), for Q* to be positive, it is necessary that the expression (ad – bc) have the same algebraic sign as (b+d). Verify that this condition is indeed satisfied in the models of Probs. 1...
. If (b + d) =0 in the linear market model, can an equilibrium solution be...
. If (b + d) =0 in the linear market model, can an equilibrium solution be found by using (3.4) and (3.5)? Why or why not? Question 3.4 The demand and supply Functions of a two-commodity market model are as follows: Q_d1 = 18 -3P_1 + P_2 Qd_2 = 12 + P_1 - 2P_2 Qs_1 = -2 + 4 P_1 Qs_2 + = -2 + 3P_2 Find P*_1 and Q*_1 (i=1,2) . (Use fractions rather than decimals.) Questions 3.5 Given...
Consider a market that faces the following market supply and demand functions Q^S = −2 +...
Consider a market that faces the following market supply and demand functions Q^S = −2 + 2p Q^D = 16 − p where identical firms face the total cost function of T C = 8 + 3q + 1/2q^2 a) What is the market price? b) Derive the average variable cost, average total cost, and marginal cost functions. c) In the short run, how much does each firm produce? d) In the short run, how much economic profit or loss...
Questions 5-15 The demand and supply schedules for chewing gum are as follows: Supply: Q =...
Questions 5-15 The demand and supply schedules for chewing gum are as follows: Supply: Q = 3P - 30 Demand: Q = -2P+220 Where P is the price of gum, and Q is the quantity, in millions of packs. 5. What is the equilibrium price of gum? (Please enter a whole number, with no decimal point). 6. How many packs of gum will be bought and sold in equilibrium? (Answer in millions, so if the answer is 9,000,000 packs, write...
Question 1 (36 points) Suppose that the demand function is given as follows: 5000 3Pr +P,...
Question 1 (36 points) Suppose that the demand function is given as follows: 5000 3Pr +P, -2I and 2P T - P. where Pr denotes price of good x. P, denotes the price of a related product y, I denotes income, T denotes the tax imposed by the government on firms and P. denotes the price of alternative product that can be produced by firms a-) (8 points) Find equilibrium price and output (Peg and Oe") as a function of...
12. Given the demand function is Q 180 5P, find the following: a The revenue finction...
12. Given the demand function is Q 180 5P, find the following: a The revenue finction b. The revnue maximizing output and price c. The own-price elasticity of demand at P $80 d. The level ofe and P where the own-price elasticity of demand (ED) is equal to one, in absolute value. What is the nature of total revenue when lEDl 1? 13. Assume that the demand function is Q demand at each of the following prices a. b. $7...
A monopolist's inverse demand function P D(Q) is described as follows: D(1)-64, D(2)-45, D(3)-26, D(4)-17, D(5)-8....
A monopolist's inverse demand function P D(Q) is described as follows: D(1)-64, D(2)-45, D(3)-26, D(4)-17, D(5)-8. Answer the following: a) What is the infra-marginal effect of this monopolist at Q-1? b) What is the volume effect of this monopolist at Q-1? c) What is the marginal revenue of this monopolist at Q-3? d) Suppose the marginal cost is not constant and increases with production in the following way: MC(1)-1, MC(2)-6, MC(3)-12, MC(4)-21, MC(5)-33. How many units should this monopolist sell...
2. Let the demand and supply functions be as follows: (a) Qd-51 – 3P (6) Qd = 30 – 2P Qs = 6P - 10 Qs = -6 +5P find P* and Q* by elimination of variables. (Use fractions rather than decimals.) 3. According to (3.5), for Q* to be positive, it is necessary that the expression (ad – bc) have the same algebraic sign as (b+d). Verify that this condition is indeed satisfied in the models of Probs. 1...
Questions 5-15 The demand and supply schedules for chewing gum are as follows: Supply: Q = 3P - 30 Demand: Q = -2P+220 Where P is the price of gum, and Q is the quantity, in millions of packs. 5. What is the equilibrium price of gum? (Please enter a whole number, with no decimal point). 6. How many packs of gum will be bought and sold in equilibrium? (Answer in millions, so if the answer is 9,000,000 packs, write...
Question 1 (36 points) Suppose that the demand function is given as follows: 5000 3Pr +P, -2I and 2P T - P. where Pr denotes price of good x. P, denotes the price of a related product y, I denotes income, T denotes the tax imposed by the government on firms and P. denotes the price of alternative product that can be produced by firms a-) (8 points) Find equilibrium price and output (Peg and Oe") as a function of...
12. Given the demand function is Q 180 5P, find the following: a The revenue finction b. The revnue maximizing output and price c. The own-price elasticity of demand at P $80 d. The level ofe and P where the own-price elasticity of demand (ED) is equal to one, in absolute value. What is the nature of total revenue when lEDl 1? 13. Assume that the demand function is Q demand at each of the following prices a. b. $7...
A monopolist's inverse demand function P D(Q) is described as follows: D(1)-64, D(2)-45, D(3)-26, D(4)-17, D(5)-8. Answer the following: a) What is the infra-marginal effect of this monopolist at Q-1? b) What is the volume effect of this monopolist at Q-1? c) What is the marginal revenue of this monopolist at Q-3? d) Suppose the marginal cost is not constant and increases with production in the following way: MC(1)-1, MC(2)-6, MC(3)-12, MC(4)-21, MC(5)-33. How many units should this monopolist sell...
Most questions answered within 3 hours.
-
A graduate student is conducting research in psychology and
needs to obtain the IQ scores of...
asked 18 minutes ago -
R2.84: There are 2 defective products in a production lot of 10.
An inspector randomly selected...
asked 1 hour ago -
Consider the following equilibrium system: COCl2(g) CO(g) +
Cl2(g) A 10.00 L evacuated flask is filled...
asked 2 hours ago -
1) What are the two distinct steps that one needs to perform
when developing a data...
asked 2 hours ago -
2) Write a C++ program that uses a class called “Degree” to
obtain the trigonometric
values...
asked 3 hours ago -
1. In eukaryotic cells the genomes of
&
asked 3 hours ago -
The standard enthalpy of propanol (C3H7OH) is -303.0 kJ/mol.
Compute both of the
gross and net...
asked 3 hours ago -
Why PWM using H-bridge for control motor speed is more power
effiecient than the linear amplifier...
asked 3 hours ago -
In 1999, Carly Fiorina famously said,"I hope that we are at a
point that everyone is...
asked 3 hours ago -
Individuals in a species of moth vary in wing color from white to
black, but all...
asked 3 hours ago -
The following standards for variable manufacturing overhead have
been established for a company that makes only...
asked 3 hours ago -
The United States government wanted to determine what proportion
of Americans approve of the current president,...
asked 4 hours ago