If a good is not produced then there is no demand for it”- the statement is false
Consumer’s demand for a particular good or commodity is independent of the supply of the good. For example consumers may be willing to pay a price lower than the price which will cover the cost of production of the good. In this case, even if there is demand for the goods, suppliers will not supply the good. Or if there is some natural disasters which destroys the supply of a particular good, then even if there is demand for the good, but suppliers will not be able to supply the good.
The quantity of a good that consumers demand depends only on the price of the good- the statement is false.
Quantity demanded of a particular good or commodity depends on the endogenous variable I.e the price of the good and also on many exogenous variables such as, income level of the consumers, price of its substitutes and complements etc.
The equilibrium price is called the market clearing price, because at this price, the demand curve and the supply curve of a particular good or commodity intersects with each other and there is no excess demand or excess supply in the market, and the market clears.
A rightward shift of the demand curve from D1 to D2 will increase the equilibrium price of the good from P1 to P2 and the equilibrium quantity of the good will also increase from Q1 to Q2.
Suppose the demand for a particular product can be expressed as Q = 100/p. Calculate the...
Suppose the demand for a particular product can be expressed as Q = 100/p. Calculate the total amount spent on this good when p = 10, 20, and 50. EXPLAIN PLEASE
Type your answer in the box. If the demand curve for a product is P = 100-Q (with P representing price measured in dollars) and the supply curve for the product is P = 4Q, the market clearing price is $_______ value) and the equilibrium quantity is _______ units.
15. Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for $10, then the price elasticity of demand equals ОА. – 4. ов. - 1.5. Ос. - 2.5. OD. – 0.67. 16. If the demand curve for comic books is expressed as Q = 10,000/p, then demand has a unitary elasticity O A. always. OB. never. O c. only when p = 100. OD. only when p = 10,000.
Part I Suppose that in the market for paper, demand is P=100 - Q. The marginal private cost of producing paper is 10+ Q. However, pollution generated by the production process creates a per unit external harm (i.e., negative externality) equal to 0.5Q (i.e., the level of the externality increases with the quantity produced). 16+1,5 Q (Social cret) 10+Q (private 0 36 45 Top a) What is the (unregulated) market equilibrium and quantity if the externality is not corrected for...
Suppose that the individual demand functions for a particular good are Q 30- 4P for 4 people and Q 20- P for 3 people. Assume that these 7 people make up the entire market and act as price-takers. The marginal cost of producing the good is constant at MC-$5. (a) If the good described above is delicious ice cream sundaes, what is the Pareto efficient price and quantity in this market? (b) If the good is instead fireworks, then what...
Let the market demand for widgets be described by Q = 1000 − 50P. Suppose further that widgets can be produced at a constant average and marginal cost of $10 per unit. a. Calculate the market output and price under perfect competition and under monopoly. b. Define the point elasticity of demand εD at a particular price and quantity combination as the ratio of price to quantity times the slope of the demand curve, Q/P, all multiplied by −1. What...
Suppose a market were currently at equilibrium. An outward shift of the demand curve would cause A) a decrease in both price and quantity. B) an increase in both price and quantity. C) a decrease in price but an increase in quantity. D) an increase in price but a decrease in quantity.
Suppose US demand for steel is given by P = 200 – Q; US supply for steel is given by P = 50 + Q/2; International firms can supply as much or as little steel as they want at a price of P = 80. (a) Draw the supply and demand diagrams with and without international trade? (b) What is the market clearing price and quantity if international firms can sell in the U.S.? What about if international firms are...
4. Suppose the market for grass seed can be expressed as: Demand: Qd = 200 - 5P Supply: Qs = 40 + 5P If the government collects a $5 specific tax from sellers (here you can change the supply equation to Qs = 40 + 5(P-t) or Qs = 15+ 5P, How much will the quantity demanded change from the amount demanded before the tax? What price will consumers pay after the tax? What price will sellers receive after the...
3. Suppose the market for widgets can be described by the following equations: Demand: P= 10 - Q Supply: P=Q-4 where P is the price in dollars per unit and Q is the quantity in thousands of units. a. What is the equilibrium price and quantity? (2 points) b. Suppose the government imposes a tax of $1 per unit to reduce widget consumption and raise government revenues. What will the new equilibrium quantity be? What price will the buyer pay?...