Suppose supply and demand curves are:
Setting QD=QS
28-2P=-4+2P
28+4=2P+2P
32=4P
Equilibrium P=32/4 = 8
Equilibrium Q=28-2(8) = 12
Maximum reservation price = 28/2 = 14
Minimum reservation price = 4/2 = 2
When a tax of $2 is imposed on the sellers,the supply curve will shift upwards by $2 at each price level
Price consumers pay = 9
Price producers receive = 7
New equilibrium quantity = 10
Deadweight loss = 0.5*[(12-10)*(9-7)] = 2
Suppose that the demand and supply curves for a good are given by QD = 50 – P and QS = 4P – 30. At what price is there an excess demand of 40 units?
Suppose these are the market demand and supply curves for hooded sweatshirts: Supply: P = 10 + 2QS Demand: P = 50−3QD (a) Sketch these two curves (that is, draw them, but don’t worry about numerical accuracy). Calculate equilibrium price and quantity. Calculate equilibrium price and quantity. (b) Show on your graph the areas of consumer and producer surplus. Calculate consumer and producer surplus at the equilibrium from part a. (c) Calculate the price elasticity of demand when price changes...
Consider a market for wheat. Suppose the supply and demand curves are linear, namely Supply: Qs = 120 + 240P Demand: Qd = 300 - 120P a) (5%) What is the equilibrium price and quantity? b) (5%) What is the price elasticity of demand at the equilibrium? What is the price elasticity of supply at the equilibrium? For part c and d below, suppose that a drought changed the supply curve and the new equilibrium price is $1.00 per bushel....
Suppose there exists a market for bicycles. The supply and the demand curves in this market are given by the following equations where P is the price per bicycle measured in dollars and Q is the quantity of bicycles: Market Demand Curve: P = 1500 – 3Q Market Supply Curve: P = Q + 300. Given the above information and holding everything else constant, find the equilibrium price and quantity in this market.
3. Draw supply and demand curves. Assume that these are the supply and demand curves for the Microsoft Surface tablet. Draw what happens on this graph when the price of iPads decreases. Surface tablets and iPads are substitute goods. Clearly illustrate and label all equilibrium points, prices, and quantities.
Consider the market for corn. Suppose the market demand and supply curves are as given. Demand: P = 270-3QD; Supply P = 30 + QS. Price is the price per metric ton (in cents). 1) Calculate the equilibrium price (P) and quantity (Q). 2) If the government impose a price floor of 100 cents per metric ton on corn, calculate the quantity demanded, quantity supplies and the surplus/ shortage at this price.
Suppose the demand and supply curves for eggs in the United States are given by the following equations: Qi = 100 – 20P Q. = 10 + 40P where Qd = millions of dozens of eggs Americans would like to buy each year; Q = millions of dozens of eggs U.S. farms would like to sell each year; and P = price per dozen eggs. a. Fill in the following table: Price (Per Dozen) Quantity Demanded (Q) Quantity Supplied (2.)...
Suppose the Supply and Demand curves below represent the market
for coffee. If a powerful hurricane destroys many coffee trees in
the Caribbean, then CLICK ON THE GRAPH to mark at least one
possible new equilibrium.
Selected Coordinates
Suppose that the graph below depicts demand and supply curves for gasoline. Which graph best represents the situation when cost producing gasoline (refining) decreases? Figure 2.1 Supply Curve lethard Supply Curve Irightwand Demand Curve tettwardi Demand Curve ingheward) Price Price Price Price / ty (a) Quantity ibi Quantity a Ob Ос Od
2) Suppose that the demand and supply curves for a good are given by QD = (900/P) and QS = 4P. What is the equilibrium price and equilibrium quantity? Explain what is happening in the market at a price of $10 & Explain what is happening in the market at a price of $20. Please represent this market in a graph for price in equilibrium, when the price is $10 and when the price is $20.