b. Equilibrium: 1) If market demand function is Q = 4−2p, and market supply function is...
b. Equilibrium:
1) If market demand function is Q = 4−2p, and market supply function is Q = 2p, what is the equilibrium price, what is the equilibrium quantity?
2) If the market supply is Q = p, the market demand is Q = 3 − bp, and the equilibrium quantity is 2, what is the value of b?
Homework Answers
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b. Equilibrium:
1) If market demand function is Q = 4−2p, and market supply
function is...
The market demand and market supply of wooden chairs are given below: Q 30 2P Q...
The market demand and market supply of wooden chairs are given below: Q 30 2P Q 103P (1) (2) (a) Identify which one is the demand equation and why? (b) Identify which one is the supply equation and why? (c) What is the equilibrium price (P) and equilibrium quantity (Q)? (d) Describe the market situation if market price (P) is 6 (e) Describe the market situation if market price (P) is 10
The supply function is Q 60 2p - 20r, and the demand function is Q- 260-2p,...
The supply function is Q 60 2p - 20r, and the demand function is Q- 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? The effect of r on the equilibrium price is (Enter your resonse as a whole number.) The effect of r on the equilibrium quantity isEnter your resonse as a whole number.) op
The supply function is Q- 60 +2p - 20r, and the demand function is Q 260-2p,...
The supply function is Q- 60 +2p - 20r, and the demand function is Q 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? др The effect of r on the equilibrm price iser your resonse as a whole number)
part b Suppose that a market is described by the following supply and demand equations Q...
part b
Suppose that a market is described by the following supply and demand equations Q = 2P QP = 300-P a. Solve for the equilibrium price and the equilibrium quantity. Calculate the consumer and producer surplus 2P =300-P P 2100 Equilibrium price quantity Q = 2(000) =200 Equilibri Suplus: A ABL = ²2 Consumer b. Suppose that a tax of 10 is placed on buyers, so the new demand equation is Q" = 300 - (P+10) Solve for the...
Q3) Suppose that the market demand and supply curve in a competitive market are Q"-15 - 2P and QS...
Q3) Suppose that the market demand and supply curve in a competitive market are Q"-15 - 2P and QS-P. For each of the following policies, calculate the price and quantity that will be traded and the value of the deadweight loss. a) An excise tax of S1 per unit, paid by producers. b) A subsidy of $2 per unit, paid to consumers. c) A price floor of S7. d) A price ceiling of S4. e) A production quota of 3...
The market demand and supply is described by the following equations: Q = 100 - P Q=2P - 20 1) Find the market equilibr...
The market demand and supply is described by the following equations: Q = 100 - P Q=2P - 20 1) Find the market equilibrium 2) What is the CS, PS, and W in this market? 3) Assume that the government introduces a subsidy of 15$ per unit to the supply. What is the new equilibrium? 4) Find the change in CS, PS, and W. Is there Dead Weight Loss? if so, of how much?. 5) What does this tell you...
The following supply and demand functions describe the competitive market Q2+4P Q40-2P where Q and Q"...
The following supply and demand functions describe the competitive market Q2+4P Q40-2P where Q and Q" are the quantities supplied and demanded, and P is the market price. (a) What are the equilibrium price, P, and quantity, Q"? (b) Compute the producer and consumer surplus that results from the market equilibrium in (a). Hint: To solve this problem, try drawing a graph of this market. Then recall the definitions from class: CS is the area under the demand curve and...
Q5 (6 pts). Given the following linear supply and demand in standard form Supply:-2P + 4Q...
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...
Q(p) = 10 + 3p Q(p) = 15 - 2p^2 (2)The following equations describe the market...
Q(p) = 10 + 3p
Q(p) = 15 - 2p^2
(2)The following equations describe the market for commodity X. Q(p) = 10 + 3P.. Q(p) = 15 - 2P .....(2) (a)Which of the two equations is the demand equation and which is the supply equation? Explain. (b) Find the equilibrium price and the equilibrium quantity transacted in this market. (C)Find the price elasticity of demand at equilibrium and comment on how the firm could use this information if it considers...
8. Suppose that Grandy has a demand function q = 10 - 2p 1) What is...
8. Suppose that Grandy has a demand function q = 10 - 2p 1) What is the price elasticity of demand when the price is 3? 2) At what price is the elasticity of demand equal to -1? 3) Suppose that her demand function takes the general form q = a - bp. Write down the price elasticity of demand as a function of p.
The market demand and market supply of wooden chairs are given below: Q 30 2P Q 103P (1) (2) (a) Identify which one is the demand equation and why? (b) Identify which one is the supply equation and why? (c) What is the equilibrium price (P) and equilibrium quantity (Q)? (d) Describe the market situation if market price (P) is 6 (e) Describe the market situation if market price (P) is 10
The supply function is Q 60 2p - 20r, and the demand function is Q- 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? The effect of r on the equilibrium price is (Enter your resonse as a whole number.) The effect of r on the equilibrium quantity isEnter your resonse as a whole number.) op
The supply function is Q- 60 +2p - 20r, and the demand function is Q 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? др The effect of r on the equilibrm price iser your resonse as a whole number)
part b
Suppose that a market is described by the following supply and demand equations Q = 2P QP = 300-P a. Solve for the equilibrium price and the equilibrium quantity. Calculate the consumer and producer surplus 2P =300-P P 2100 Equilibrium price quantity Q = 2(000) =200 Equilibri Suplus: A ABL = ²2 Consumer b. Suppose that a tax of 10 is placed on buyers, so the new demand equation is Q" = 300 - (P+10) Solve for the...
Q3) Suppose that the market demand and supply curve in a competitive market are Q"-15 - 2P and QS-P. For each of the following policies, calculate the price and quantity that will be traded and the value of the deadweight loss. a) An excise tax of S1 per unit, paid by producers. b) A subsidy of $2 per unit, paid to consumers. c) A price floor of S7. d) A price ceiling of S4. e) A production quota of 3...
The market demand and supply is described by the following equations: Q = 100 - P Q=2P - 20 1) Find the market equilibrium 2) What is the CS, PS, and W in this market? 3) Assume that the government introduces a subsidy of 15$ per unit to the supply. What is the new equilibrium? 4) Find the change in CS, PS, and W. Is there Dead Weight Loss? if so, of how much?. 5) What does this tell you...
The following supply and demand functions describe the competitive market Q2+4P Q40-2P where Q and Q" are the quantities supplied and demanded, and P is the market price. (a) What are the equilibrium price, P, and quantity, Q"? (b) Compute the producer and consumer surplus that results from the market equilibrium in (a). Hint: To solve this problem, try drawing a graph of this market. Then recall the definitions from class: CS is the area under the demand curve and...
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...
Q(p) = 10 + 3p
Q(p) = 15 - 2p^2
(2)The following equations describe the market for commodity X. Q(p) = 10 + 3P.. Q(p) = 15 - 2P .....(2) (a)Which of the two equations is the demand equation and which is the supply equation? Explain. (b) Find the equilibrium price and the equilibrium quantity transacted in this market. (C)Find the price elasticity of demand at equilibrium and comment on how the firm could use this information if it considers...
8. Suppose that Grandy has a demand function q = 10 - 2p 1) What is the price elasticity of demand when the price is 3? 2) At what price is the elasticity of demand equal to -1? 3) Suppose that her demand function takes the general form q = a - bp. Write down the price elasticity of demand as a function of p.
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