I need help understanding how to graph the inverse functions. I have you all th steps but it's part C i dont get. I dont know how to translate the informstion into the graph so cpuld you please shoe me step by step.
Thus the two shaded region represent the consumer and producer surplus as labeled and e is the competitive equilibrium point where demand curve intersects the supply curve.
I need help understanding how to graph the inverse functions. I have you all th steps but it's pa...
The market demand function for corn is Q^d = 21 - 4P, and the market supply function is Q^s = 5P - 6, both quantities measured in billions of bushels per year, and producer surplus at the competitive market equilibrium?
The market demand function for corn is Qd = 21 - 7P The market supply function is QS = 5P - 6 both quantities measured in billions of bushels per year. Instructions: Round all quantities to the nearest whole number and prices to 2 decimal places. a. What is consumer surplus at the competitive market equilibrium? $. b. What is producer surplus at the competitive market equilibrium? $. c. What is aggregate surplus at this equilibrium?
IMPORTANT: I know that I have a problem walkthrough and answers below, but there's a lot I don't get. Please help me with this. a) 1. I see how they got the price elasticity of demand and how they got the equilibrium price AND quantity. However, I don't see how they got the elasticity of demand AT the equilibrium and quantity. Am I looking too much at the word usage or does the "AND" and "AT" make a difference? If...
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...
Please solve and show steps Question 1 Pleasesho l laculations to get cr) a. Suppose you are the manager of a watchmaking firm operating in competitive market. The price of the watches from the competitive market is p. The firm's cost function is given by TC 450150+202.Find equations for the marginal cost curve, average cost curve, average variable cost curve and the supply function of this firm (all the fixed costs are sunk); draw the supply function clearly showing the...
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...
Question 1: In a perfectly competitive market, the demand curve is given as: Q=100-5P, the supply curve is given as Q=3P-12. Compute the total social surplus of this market. If the government impose a tax on the producers, and the tax rate is $2 per unit produced. What is the deadweight loss? If the government impose a tax on the consumers, and the tax rate is $2 per unit purchased, graphically show the change in the market equilibrium and the...
Problem Set 1 Due Date: Wednesday, January 25,2017 1. Consider the following demand function of an individual for good 1: where p" p2, ps are the prices of good 12, and 3, respectively, and Y represents the income the individual. Suppose good 1 and 2 are substitutes while good 1 and 3 are complements. (a) Describe in words what B,,B,, B, and B, measure. (b) Can you say anything about the expected signs of p.B.B, and B, in the demand...
4. The WSJ article stated that the EU eliminated import tariffs on all cereal crops. The domestic market for wheat in the EU is described by the following equations: Demand: P = 10 – Q Supply: P = Q Where P is dollars per bushel of wheat and Q is billions of bushels per year. The world price for wheat was $3.00/bushel. Graph the wheat market in the showing equilibrium both with no barriers to trade and with a $1.00/bushel tariff....
Please show your work 6. Consider the following demand and supply functions for commodity i: qp = 500 - 10pi +5p; + 20y qi = -100+ 10pi - 10px where y = income, p; = price of substitute j, and pk = price of input k. (a) Solve for and graph the inverse demand and supply functions under the assumption that P; = 4, y = 4, and P = 10. 2pt Solve for equilibrium quantity and price, q* and...