The demand for a monthly cell phone plans is given by QD = 50 – 0.5...
The demand for a monthly cell phone plans is given by QD = 50 – 0.5 P and the supply of cell phone plans is given by QS = - 25 + P. The quantity is measured in thousands of cell phone plans and the price is in dollars. a. Solve for the equilibrium price and equilibrium quantity of cell phone plans sold in this market. (4) b. Assume that the market price is $ 45 per plan. Would you have a surplus or shortage at that price? Calculate the surplus or shortage.
Homework Answers
Add Answer to:
The demand for a monthly cell phone plans is given by QD = 50 –
0.5...
Suppose demand and supply are given by Qd = 50 - P and Qs = 0.5P -...
Suppose demand and supply are given by Qd = 50 - P and Qs = 0.5P - 10. a. What are the equilibrium quantity and price in this market? Equilibrium quantity: Equilibrium price: b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $48 is imposed in this market. Quantity demanded: Quantity supplied: Surplus: c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling...
1 Suppose the demand for shoes is given by: QD= 210 -2P. The supply of shoes...
1 Suppose the demand for shoes is given by: QD= 210 -2P. The supply of shoes is given by: QS= 9P -120. Calculate the Gains from Trade (also known as Economic Surplus) that would exist in this market in a competitive equilibrium. 2 Suppose the demand for jackets was given by: QD= 140 -0.4P. The supply of jackets is given by: QS= 4P -80. Suppose the price was $49 per jacket. Calculate whether there is a surplus or shortage of...
Supply & Demand, Equilibrium, and Surplus 1. Consider a specific market for smart phone plans (not...
Supply & Demand, Equilibrium, and Surplus 1. Consider a specific market for smart phone plans (not the phones) in a small town. Here are the conditions: Q = 50 – 0.5 * P Q = –25 + P a. Is the first one the supply or demand curve? How can you tell? (hint: solve for P first) b. At what price will the market be in equilibrium? How many transactions (quantity) will take place? c. If the current price is...
Q. Given the following supply and demand functions, calculate consumer surplus. P = 600 − Qd...
Q. Given the following supply and demand functions, calculate consumer surplus. P = 600 − Qd P = 300 + 2QS Q. Consider the market for jet fuel in a remote regional airport. The domestic demand and supply curves are given as (Qs are gallons in thousands): P = 55 − 3QD P = 5 + 7 QS a) What is the market equilibrium price and quantity? b) If the government imposes a price ceiling of $28, what will be...
Suppose demand and supply are given by Qd = 60 – P and Qs = P...
Suppose demand and supply are given by Qd = 60 – P and Qs = P -20 What are the equilibrium quantity and price in this market? Determine the quantity demanded, the quantity suppled, and the magnitude of the surplus id a price floor of $50 is imposed in this market. Determine the quantity demanded, the quantity suppled, and the magnitude of the shortage if a price celling of $32 is imposed in this market. Also determine the full economic...
Suppose demand and supply are given by Qd = 60 – P and Qs = P...
Suppose demand and supply are given by Qd = 60 – P and Qs = P -20 What are the equilibrium quantity and price in this market? Determine the quantity demanded, the quantity suppled, and the magnitude of the surplus id a price floor of $50 is imposed in this market. Determine the quantity demanded, the quantity suppled, and the magnitude of the shortage if a price celling of $32 is imposed in this market. Also determine the full economic...
6. Demand, Supply, consumer surplus and Market Equilibrium. The following relations describe monthly demand and supply...
6. Demand, Supply, consumer surplus and Market Equilibrium. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum QD = 317,500 - 10,000P (Demand) Qs = -2,500 + 10,000P (Supply) where Q is quantity measured in pounds of scrap aluminum and P is price in dollars. Complete the following table: A Calculate the market equilibrium price and output? B. What is the inverse demand curve P = f(QD)? C. Compute the consumer surplus at...
An economist estimates that market demand for apartment in Boulder is Qd = 100 – 5P,...
An economist estimates that market demand for apartment in Boulder is Qd = 100 – 5P, with quantity measured in thousands of apartments, and price, the average monthly rental rate, measured in hundreds of dollars. The city’s board of realtors has shown that supply is Qs = 50 + 5P. What is the market price and quantity in terms of apartments in Boulder? Explain what will happen in this market if the city council forces average monthly rental rate to...
Suppose demand for automobiles in the United States is given by: P= 100−0.09QD where P is...
Suppose demand for automobiles in the United States is given by: P= 100−0.09QD where P is the price for new vehicles in dollars and QD is the quantity demanded per month. Assume the supply of automobiles is given by P= 4 + 0.03QS where again P is the price in thousands of dollars and QS is the quantity sold per month in hundreds of thousands. a.) Solve for the market equilibrium price and quantity. b.) Depict this market graphically, and...
4. Suppose the market for grass seed can be expressed as: Demand: Qd = 200 -...
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...
Supply & Demand, Equilibrium, and Surplus 1. Consider a specific market for smart phone plans (not the phones) in a small town. Here are the conditions: Q = 50 – 0.5 * P Q = –25 + P a. Is the first one the supply or demand curve? How can you tell? (hint: solve for P first) b. At what price will the market be in equilibrium? How many transactions (quantity) will take place? c. If the current price is...
6. Demand, Supply, consumer surplus and Market Equilibrium. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum QD = 317,500 - 10,000P (Demand) Qs = -2,500 + 10,000P (Supply) where Q is quantity measured in pounds of scrap aluminum and P is price in dollars. Complete the following table: A Calculate the market equilibrium price and output? B. What is the inverse demand curve P = f(QD)? C. Compute the consumer surplus at...
Most questions answered within 3 hours.
-
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 31 minutes ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 1 hour ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 1 hour ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 5 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 5 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 5 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 5 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 6 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 5 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 6 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 6 hours ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 6 hours ago