Answer:
considering the national market for test model S all-electric luxury car with the inverse demand
a)
Given by:-
Now, When
When
Now inverse supply
When
When
Now we can draw demand and supply curve
Now equilibrium occurs when demand equals supply and at equilibrium
hence ,
and equilibrium price will be found by substituting Q=105 in either demand or in supply equation.
Hence
b)
Now, consumer supply at equilibrium is the area below the demand curve and above equilibrium price
and producer supply is the area above the supply curve and below price i.e. area of triangle ABC
Hence, total supply
This is an efficient allocation of resources because at the equilibrium price where quantity demanded becomes equal to the quantity supplied, there is no loss or dead weight loss in the economy.
e)
If price of Tesla model decreases by $10(towards below the equilibrium price)
New price will be
(i)
Now at price of $31.25 quantity demanded
AND quantity supplied
Now consumer supply
Now to get point M,we substitute quantity
Q=65 in the demand equation and solve for the price.
Hence,
Hence total consumer supply
Now producer supply
Hence total supply= consumer supply+producer supply
Hence total supply demand by
Note:-
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please show work 1. Consider the national market for Tesla Model S all-electric luxury car with...
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