ZuoTi.Pro
Question

Suppose that good X is perfectly divisible (you can buy non-integer quantities). The supply curve is given by Qs-1.3P -2. The
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

At the equilibrium the price and quantity are equal .

We get Qs=Qd.

1.3P - 2 = 40 - 1.4P

1.3P + 1.4P = 40+2

2.7P = 42.

P = 42/2.7

Price of the good at equilibrium will be 15.55.

using the value to get quantity = 40 - 1.4 (15.55)

= 18.23. will be the equilibrium quantity.

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose that good X is perfectly divisible (you can buy non-integer quantities). The supply curve is...
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

  • Suppose that oil is perfectly divisible (you can buy non-integer quantities). The marginal cost curve is...

    Suppose that oil is perfectly divisible (you can buy non-integer quantities). The marginal cost curve is given by MC=1.5Q + 2. The demand curve is given by P =32 - 1.8Q, which gives MR=32-3.6Q In the most efficient outcome (which perfectly competitive markets achieve), P=MC. Solve the equilibrium price and quantity in that case. The most efficient equilibrium quantity is Blank 1. Calculate the answer by read surrounding text. . The most efficient equilibrium price is Blank 2. Calculate the...

  • please help! Suppose that good X is perfectly divisible (you can buy non-integer quantilies). The marginal...

    please help! Suppose that good X is perfectly divisible (you can buy non-integer quantilies). The marginal cost curve is given by MC 1.70+2 The demand curve is given by P -39-1.5Q, which gives MR 39-30 n the most efficient outcome (which perfectly competitive markets achieve), P-MC Solve the equilibrium pro e and quantity in The most efficient equilbrium quantity is The most officient equilibrium price is But a monopolist doos not produce the mos fficient price The most profitable quantity...

  • 2. In the market for good X, demand is QD = 6,000 – 0.8P and supply...

    2. In the market for good X, demand is QD = 6,000 – 0.8P and supply is QS = 0.4P – 300. a. Derive the inverse demand and inverse supply equations. b. What is the equilibrium price and quantity? c. Calculate the price elasticity of demand and the price elasticity of supply at the equilibrium. d. Suppose that an increase in consumer income makes consumers willing to pay $500 more per unit of good X, what is the new demand...

  • Suppose the market for nurses can be modeled using supply and demand (the market is perfectly...

    Suppose the market for nurses can be modeled using supply and demand (the market is perfectly competitive). There are a large number of hospitals, doctors’ offices, clinics, etc., so that no individual employer has an impact on the market wage. The nurses are not unionized so they individually have no impact on the wage. Demand is given as Qd = 24,000 – 320W, where Qd is the quantity demanded (in full-time equivalents) and W is the hourly wage rate. Supply...

  • Consider a perfectly competitive market for a good with the following supply and demand curves: Qd=...

    Consider a perfectly competitive market for a good with the following supply and demand curves: Qd= 400–P and Qs= 80 + 4P a. Calculate the change in equilibrium quantity, and the size of the deadweight loss that will result if a unit tax of $10 is imposedon consumers of this good. Draw a graph that illustrates how you arrived at your answer. b. Suppose the demand curve changes to: Qd’= 376-0.6P First, verify that the pre-tax equilibrium is approximately the...

  • 1-Suppose the supply of a good is given by the equation, P = 150 + (QS/5)...

    1-Suppose the supply of a good is given by the equation, P = 150 + (QS/5) and the demand for the good is given by the equation, P = 1350 – QD. What is the equilibrium quantity? Select one: a. 500 b. 800 c. 1000 d. 1200 2-Suppose the supply of a good is given by the equation, P = 150 + (QS/5) and the demand for the good is given by the equation, P = 1350 – QD. What...

  • Suppose that the demand and supply functions for good X are Qd = 56 – 2PX...

    Suppose that the demand and supply functions for good X are Qd = 56 – 2PX + 0.01M +7PR Qs = -600 + 10PX Where PX is the sales price of good X, M is average consumer income, PR is the price of a related good. Is good X a normal or inferior good? Are good X and R complements of substitutes? Explain? Suppose M = $50,000 and PR = $20 What is the direct demand function for good X?...

  • 5. Suppose the demand and supply functions are given by QD 15-P Qs- P-5, where QD...

    5. Suppose the demand and supply functions are given by QD 15-P Qs- P-5, where QD and Qs are the quantities and P is the price. a) Graph the demand curve and supply curve. [Hint: label each axis, the price and quantity b) Calculate the equilibrium price and quantity; add these values to the graph and label them as c) Suppose demand decreases by 1 unit at each price. What is the new demand function? Add the d) Calculate the...

  • Suppose the supply curve for apples is given by QS = 2P, where QS is the...

    Suppose the supply curve for apples is given by QS = 2P, where QS is the quantity offered for sale when the prices is P. Also, suppose the demand curve for apples is given by QD = 182 − 4P I, where QD is the quantity of apples demanded when the price is P and the level of income is I. a) Find the equilibrium P and Q when I = 6. b) Find price-elasticity of demand at the equilibrium...

  • 10. Suppose the demand for gourmet personal pan pizzas is given by the following equation: Qd...

    10. Suppose the demand for gourmet personal pan pizzas is given by the following equation: Qd = 11 - 2P where Qd is the amount of pizzas consumers want to buy (i.e., quantity demanded), and P is the price of pizzas. Suppose the supply of gourmet personal pan pizzas is: Qs = 2 + 1P where Qs is the amount of pizzas producers will supply (i.e., quantity supplied). What is the equilibrium market price and quantity of gourmet personal pan...

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