Suppose the Three Stooges have different demands for doughnuts. Moe’s demand is given by Q = 15 – 3P; Larry’s demand is...

Question

Question

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.
1. Derive the market demand curve for doughnuts algebraically.
2. Graph the market demand curve for doughnuts. Pay special attention to any kinks in the market demand! Label price and quantity at these points.

Answer 1

Answer #1

Moes demand: Larrys demand curlys demand: Q = 15-3P aa-p a = 6-3P Masket demand = Qutatac Q = 15-3P 19-P 76-3p Q = 30-7P M

Answer 2

Similar Homework Help Questions

Three buyers have different demands for donuts: i. Buyer 1 has the following demand: qd= 5...

Three buyers have different demands for donuts: i. Buyer 1 has the following demand: qd= 5 - P. Buyer 2 has the following demand: qa= 6 - 2P Buyer 3 has the following demand: qd= 4 - .5P| 1. Derive the market demand curve for donuts, algebraically. 2. Graph the market demand curve for donuts. Pay special attention to any kinks in the market demand!
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...
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 my demand for a good is given by P = 6 – 2 * Q...

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.
Question 1: In a perfectly competitive market, the demand curve is given as: Q=100-5P, the supply curve is given as Q=3P...

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...
Suppose that the individual demand functions for a particular good are Q 30- 4P for 4...

Suppose that the individual demand functions for a particular good are Q 30- 4P for 4 people and Q 20- P for 3 people. Assume that these 7 people make up the entire market and act as price-takers. The marginal cost of producing the good is constant at MC-$5. (a) If the good described above is delicious ice cream sundaes, what is the Pareto efficient price and quantity in this market? (b) If the good is instead fireworks, then what...

. Suppose the Demand for coffee is given by: Q=25-3p and the current market price is...

. Suppose the Demand for coffee is given by: Q=25-3p and the current market price is $3. Find the Consumer Surplus (CS). (3pts
Tax Problem: Suppose the demand curve for a good is given by Q D = 10...

Tax Problem: Suppose the demand curve for a good is given by Q D = 10 - 2P and the supply curve is given by Q S = -2 + P. a) (4 points) Find the equilibrium price and quantity in the absence of any government intervention. b) (6 points) Now suppose the government imposes a tax of t = 3. Find the new equilibrium price at which the good is sold in the market and the quantity of the...
Suppose demand for wind turbines is Q = 110-3P, where P is the price. The dominant...

Suppose demand for wind turbines is Q = 110-3P, where P is the price. The dominant producer in this industry is “Winnie’s Wind Turbines”. There are also a number of small price-taking firms that can be represented by the supply function S(P)=P-10. The marginal cost of production for the dominant firm is given by mcd=10 and the total cost function is given by 10qd. What quantity would Winnie’s Wind Turbines supply in the wind turbine market? What would be the...

10. Suppose the demand for towels is given by Q- 100-5P, and the supply of towels...

10. Suppose the demand for towels is given by Q- 100-5P, and the supply of towels is given by Q 10P. a. Derive and graph the inverse supply and inverse demand curves. c. Suppose that supply changes so that at each price, 20 fewer towels are offered for sale. Derive and graph the new d. Solve for the new equilibrium price and quantity. How does the decrease in supply affect the equilibrium price and e. Suppose instead that supply does...