ZuoTi.Pro
Question

Assume the following demand and supply equations: Demand: Q = 480 - 35P Supply: Q =...

Assume the following demand and supply equations:

Demand: Q = 480 - 35P

Supply: Q = 200 +16P

What is the equilibrium Price? What is the equilibrium quantity?

What will happen if price is fixed at 3?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer

the equilibrium is at Qd=Qs

480-35P=200+16P

51P=280

P=5.49019608

Q=480-35*5.49019608=287.843137

The price is $5.49 and the quantity is 287.84.

======

P=3 then

Qd=480-35*3=375

Qs=200+16*3=248

Qd>Qs so there is a shortage as the price is below equilibrium price so the quantity demanded is higher than the quantity supplied.

Shortage =Qd-Qs=375-248=127

The shortage is 127 units

0 0
Add a comment
Know the answer?
Add Answer to:
Assume the following demand and supply equations: Demand: Q = 480 - 35P Supply: Q =...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • 3. Demand and supply for a good are given by the following two equations: Demand: q=...

    3. Demand and supply for a good are given by the following two equations: Demand: q= 200 – p(1+T) Supply: q = 20 + 2p 9 where and p denote the quantity and price, respectively. The parameter 1 represents the tax rate imposed the per unit price. (a) Solve for the equilibrium price and quantity in terms of the parameter T. (b) Find the equilibrium price and quantity when t= 0 and t= 10%.

  • part b Suppose that a market is described by the following supply and demand equations Q...

    part b Suppose that a market is described by the following supply and demand equations Q = 2P QP = 300-P a. Solve for the equilibrium price and the equilibrium quantity. Calculate the consumer and producer surplus 2P =300-P P 2100 Equilibrium price quantity Q = 2(000) =200 Equilibri Suplus: A ABL = ²2 Consumer b. Suppose that a tax of 10 is placed on buyers, so the new demand equation is Q" = 300 - (P+10) Solve for the...

  • 3. The demand and supply for hospital care are given by the equations Q = 400...

    3. The demand and supply for hospital care are given by the equations Q = 400 – P and Q = 80 + 3P, respectively. A. Solve for the equilibrium quantity and price. (5 pts). B. Now suppose that patients have insurance so that they only pay 20% of the price for hospital care. Solve for the new equilibrium quantity and price. (5 pts) 4. Consider the following demand and supply data Price   Demand            Supply 0         200                  0 1        ...

  • Consider the following supply and demand curves. Supply: q = 800 + 400 p Demand: q...

    Consider the following supply and demand curves. Supply: q = 800 + 400 p Demand: q = 2400 − 400 p . Use these equations to respond to the following questions. (a) What is the market equilibrium price and quantity? (b) What is the Consumer Surplus? (c) What is the Producer Surplus? (d) What is Total Surplus? (e) At the equilibrium price, what is the elasticity of demand?

  • Demand, Supply and Equilibrium: Given the following equations representing the behavior of producers and consumers:...

    Demand, Supply and Equilibrium: Given the following equations representing the behavior of producers and consumers: Price Quantity Demanded Qd Quantity Supplied Qs 52 48 44 40 35 32 29 26                     24                                                                                                         Consumers: Qd = 3,380 - 35P, Producers: Qs =95P, (P: Price) (Qd: quantity demanded, Qs: Quantity supplied ) What price corresponds to the equilibrium price for this market? (1%) What is the equilibrium quantity?    Over what range of prices does a Surplus result? Over what range of...

  • 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 supply and demand for broccoli are described by the following equations: Supply: Qss = 4P...

    The supply and demand for broccoli are described by the following equations: Supply: Qss = 4P - 80 Demand: Qdd = 100 - 2P Q is in bushels, and P is in dollars per bushel. a. Graph the supply curve and the demand curve. What is the equilibrium price and quantity?

  • 2. Demand and supply equations for Good X is given as: Demand: P=6 - (1/50) Q...

    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...

  • Demand, Supply and Equilibrium: Given the following equations representing the behavior of producers and consumers: Price...

    Demand, Supply and Equilibrium: Given the following equations representing the behavior of producers and consumers: Price Quantity Demanded Qd Quantity Supplied Qs 52                                1,560                         4,940 48                                1,700                                                                                                           4,560 44                                1,840                         4,180 40                                1,980                         3,800 35                                                                 2,155                         3,325 32                                2,260                                        3,040 29                                2,365                         2,755 26                                2,470                         2,470                     24                                                                                                                                        2,540                        2,280 Consumers: Qd = 3,380 - 35P, Producers: Qs =95P, (P:...

  • Assume that demand for a commodity is represented by the equation P = 20 – 0.6...

    Assume that demand for a commodity is represented by the equation P = 20 – 0.6 Q d, and supply by the equation P = 10 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium condition Qs = Qd 1: Solve the equations to determine equilibrium price. 2: Now determine equilibrium quantity. 3. Make a Table of points and then graph the following 4. Graph Demand...

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