#1 The market ties are competitive and demand is given by P=210-Q. If supply is given by P=2Q, what will be the price in this market and what quantity?
#2 Suppose that the administration requires all of its faculty and students to wear new ties every day. Draw a supply and demand graph of this situation indicating what will happen to the market price and quantity for the ties. Why does the price change in this market?
#3 When P=5, quantity is Q=100 When P=10, quantity is Q=55 What is the elasticity of demand? Show your work. What are the factors that determine the elasticity of demand? Just list these factors
#1 The market ties are competitive and demand is given by P=210-Q. If supply is given...
In a market demand and supply equations are: The demand curve is given as: P = 50 - 3Q The supply curve is given as: P = 10 + 2Q Assuming a perfectly competitive market: 1) What is the equilibrium price and quantity?
Suppose that in a perfectly competitive market, demand is given by Q=63.0-P and supply is given by Q=P-9.0. What is aggregate surplus in the competitive market equilibrium? No units, no rounding.
Market demand for a good is given as Qd = 90 - P. Market supply is given as Q. = 5P. a) What is equilibrium price and quantity traded in this market? a. P = 15 and Q = 75 b. P = 45 and Q = 45 C. P = 40 and Q = 50 d. P = 10 and Q = 70 b) What is the point price elasticity of demand when P 20? a. Ep = 3.45,...
The market demand and market supply of wooden chairs are given below: Q 30 2P Q 103P (1) (2) (a) Identify which one is the demand equation and why? (b) Identify which one is the supply equation and why? (c) What is the equilibrium price (P) and equilibrium quantity (Q)? (d) Describe the market situation if market price (P) is 6 (e) Describe the market situation if market price (P) is 10
in a market for figs (Q, measured in kilograms) monthly demand and supply is given by: market equilibrium price is p*= 12 market equilibrium quantity is q* = 40,000 a) compute the price elasticity of supply of figs and the price elasticity of demand of figs at the equilibrium point. b) do producers or consumers have the relatively less elastic curve in this market? QP (p) = 280,000 – 20,000p QS(p) = 5,000p – 20,000
For a perfectly competitive market, daily demand for a good is given by P-10-Q, where P ¡s price and Q is quantity. Supply is given by P = 2 + Q. Suppose the government imposes an excise tax of $2 on sellers in the market. (An excise tax is a tax per unit.) (a) What is the original (before the tax) producer surplus and (b)new (after the tax) producer surplus?
2. Demand and supply equations for Good X is given as: Demand: P=6 - (1/50) Q and Supply: P= 1 + (1/100) Q [P: Price, Q: Quantity] i. Given the above information find the equilibrium price and quantity for Good X. ii. What is the point elasticity of demand at equilibrium? Is it elastic, inelastic or unitary elastic? iii. What is the point elasticity of supply at equilibrium? Is it elastic, inelastic or unitary elastic? iv. If the price increases...
Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given by Q=P-28.0. The government imposes a per-unit excise tax of $1 on the good. What is the dead-weight loss? No units, no rounding.
Problem 4: Competitive markets, equilibriua, and surplus. The market demand is Q-15-P, and the market supply is Q-P/2. (a) Assume that the markct is perfectly compctitive. What are the cquilibrium price and (b) Assume that the market is perfectly competitive. What is the equilibrium consumer, (c) In order to support producers by i quantity? producer, and total surplus? tion quota of Q-4 units. What will the market clearing price be? At that price, g prices, the government imposes a produc-...
Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given by Q=P-28.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding.