6) Find the equilibrium price for each of the two linear models of supply and demand:...
Q5 (6 pts). Given the following linear supply and demand in standard form Supply:-2P + 4Q =-12 Demand: 5P +200 150 Find the inverse linear demand and supply [Price as a function of Quantity Q f(P)], the equilibrium price [P*] and quantity [Q1. Graph the demand, supply and the equilibrium point (P* and Q) in the supply-demand diagram Choose the correct answer (Showing the appropriate steps) a) Supply: P 20 6, Demand: P40 30, P 14,Q4 b) Supply: P-4-3, D...
2. Let the demand and supply functions be as follows: (a) Qd-51 – 3P (6) Qd = 30 – 2P Qs = 6P - 10 Qs = -6 +5P find P* and Q* by elimination of variables. (Use fractions rather than decimals.) 3. According to (3.5), for Q* to be positive, it is necessary that the expression (ad – bc) have the same algebraic sign as (b+d). Verify that this condition is indeed satisfied in the models of Probs. 1...
The demand and supply curves are given by q=130−3p and q=2p−60, respectively; the equilibrium price is $38 and the equilibrium quantity is 16 units. A sales tax of 2% is imposed on the consumer. (a) Find the equation of the new demand and supply curves. b) Find the new equilibrium price and quantity. (c) How much is paid in taxes on each unit? How much of this is paid by the consumer and how much by the producer? (d) How...
Find the market equilibrium point for the following demand and supply functions. Demand: p = −2q + 290 Supply: p = 8q + 2 (q, p) = Demand: 2p = −q + 88 Supply: 3p − q = 72 (q, p) = Demand: p = −5q + 220 Supply: p = 16q + 10
2. For each of the following, find the market equilibrium price and quantity (a) Let Q,-3P-20 and Qa 40-2P. (b) Let Q, -6P and Qa 40 2P. 3. For each of the following, draw the effects of the shocks on a supply and demand graph. What happens to the equilibrium price and quantity in each of the scenarios? (a) Suppose that, due to the rising popularity of Moscow Mules, demand for copper mugs his risen. At the same time, due...
Use the following two equations for the demand and supply curves to compute the equilibrium price value. Demand curve: Qd=3300-2P Supply curve: Qs=500+8P . What is the value of the equilibrium price? What is the equilibrium quantity?
6. Market demand is given as QD = 250 - 0.5P. Market supply is given as QS = 2P. If price increases from $385 to $390, what is the price elasticity of demand? a. 0.1 b.0.3 c. 1.0 d. 3.4
What is the equilibrium price and quantity? Market Demand Price Market Supply 60 100 60 40 200 80 20 300 100 10 400 120 Equilibrium Price: _________ Equilibrium Quantity: _________ Question 2: Graphically, an equilibrium can be found where: A. at any price above the intersection of demand and supply curves. B. at any price below the intersection of the demand and supply curves. C. the intersection of the demand curve and the horizontal axis. D. the intersection of the...
Exercise 3.2: Single Unknown 2. Let the demand and supply function be as follows: a) Q_d= 51 – 3P b) Q_d=30-2P Q_s=6P-10 Q_s=-6+5P Find P* and Q* by elimination of variables. (Use fractions rather than decimals) 4. If (b + d) =0 in the linear market model, can an equilibrium solution be found by using (3.4) and (3.5)? Why or why not?
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%.