Suppose my demand for a good is given by P = 6 – 2 * Q...

Question

Question

Suppose my demand for a good is given by P = 6 – 2 * Q and your demand is given by P = 3 - 0.5 * Q.

a. Plot your demand curve and my demand curve on the same graph.

b. Use horizontal summation to derive a formula for our aggregate demand curve.

c. Add the aggregate demand curve to your graph from part a.

Answer 1

Answer #1

Answer 2

Similar Homework Help Questions

1. Suppose my demand for a good is given by P = 6 – 2 *...

1. Suppose my demand for a good is given by P = 6 – 2 * Q and your demand is given by P = 3 - .5 * Q. a. Plot your demand curve and my demand curve on the same graph. b. Use horizontal summation to derive a formula for our aggregate demand curve. c. Add the aggregate demand curve to your graph from part a.
Suppose that Florian's demand for good “Z” is Qd. Florian = 24 - 3P and Sara's...

Suppose that Florian's demand for good “Z” is Qd. Florian = 24 - 3P and Sara's demand is Qo. Sara = 32 - 4P. b) Draw each demand curve on the same graph. (Q on the horizontal axis and P on the vertical axis.) Do not forget to include the value of the intercepts on the vertical and horizontal axes for each curve. Label Florian's demand curve “Florian” and Sara's demand curve “Sara”. c) Derive the market (combined) demand equation...
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...

Suppose that market demand for a good is given by Q = 9 - 0.3 P...

Suppose that market demand for a good is given by Q = 9 - 0.3 P while market supply is given by Q = 4 + 0.3 P where Q is the quantity of the good in units, and P is the price of the good in $ per unit. Calculate the consumer surplus in this market if the market is perfectly competitive (Don't use the $ sign in your answer and round it to two decimal points)
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 Three Stooges have different demands for doughnuts. Moe’s demand is given by Q = 15 – 3P; Larry’s demand is...

Suppose the Three Stooges have different demands for doughnuts. Moe’s demand is given by Q = 15 – 3P; Larry’s demand is given by Q = 9–P; Curly’s demand is given by Q = 6 – 3P. Derive the market demand curve for doughnuts algebraically. Graph the market demand curve for doughnuts. Pay special attention to any kinks in the market demand! Label price and quantity at these points.

76. Suppose a good has a demand curve given by Q = 20 - 8 P....

76. Suppose a good has a demand curve given by Q = 20 - 8 P. What is the price elasticity of demand if the price is $22 A) 4 B) -8 C) 1/2 D) -1/2
Question 2 You own and operate a fruit stand. Your demand curve is given by P...

Question 2 You own and operate a fruit stand. Your demand curve is given by P = 0.5 - 0.002Q, where P is in dollars and Q is in pounds of fruit. Your marginal cost curve is MC = 0.006Q. Your fixed costs equal $10. (a) Use a graph to show your demand and marginal cost curves. (5 marks) (b) Use the demand curve to derive the marginal revenue curve and show it on your graph. (5 marks) (c) Calculate...
6. Suppose you have a job analyzing a perfectly competitive market. The aggregate demand is 0(p)9...

6. Suppose you have a job analyzing a perfectly competitive market. The aggregate demand is 0(p)98 p and the cost function for the firms is Ca)735. Suppose all firms use the same cost function. (a) Setup and solve the profit maximization problem over quantity. Write the quantity an individual firm will produce as a function of the sale price. 3 points) (b) Solve for the price, quantity, and profits for cach individual shop and then also for aggregate quantity in...

3. Imagine there exist three consumers, each with their own demand curves for a Public Good....

3. Imagine there exist three consumers, each with their own demand curves for a Public Good. The equations below provide the demand curves for each consumer for this public good where P is the unit price of the public good and Q is the unit value of the public good. Consumer 1: P = 200 – Q Consumer 2: P= 40 – 30 Consumer 3: P = 50 - Q. The total cost (TC) producing the public good is given...