Question

1: Assume that demand for a commodity is represented by the equation P = 10 – 0.2 Q d, and supply by the equation P = 5+ 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium condition Qs = Qd 1: Solve the equations to determine equilibrium price.

2: Now determine equilibrium quantity.

3: Graph the two equations to substantiate your answers and label these two graphs as D1 and S1.

4: Furthermore; assume the demand for this product increases because of a change in income. A: graph the new demand curve and label as D 2.

Answer #1

Demand is P = 10 – 0.2 Q d, and supply is P = 5 + 0.2Qs At equilibrium condition Qs = Qd

1: Solve the equations to determine equilibrium price.

Qd = 10/0.2 - P/0.2

Qd = 50 - 5P and similarly Qs = 5P - 25

50 - 5P = 5P - 25

75 = 10P

P = $7.5

2: Now determine equilibrium quantity.

Equilibrium quantity is

10 - 0.2Qd = 5 + 0.2Qs

5 = 0.4Q

Q = 12.5 units

3: Graph the two equations to substantiate your answers and label these two graphs as D1 and S1.

Graph is shown below

4: Furthermore; assume the demand for this product increases because of a change in income. The demand shifts out as income is increased which raises both price and quantity

.

Assume that demand for a commodity is represented by the
equation P = 20 – 0.6 Q d, and supply by the equation P = 10 + 0.2
Qs where Qd and Q s are quantity demanded and quantity supplied,
respectively, and P is the Price. Use the equilibrium condition Qs
= Qd 1: Solve the equations to determine equilibrium price. 2: Now
determine equilibrium quantity. 3: Graph the two equations to
substantiate your answers and label these two graphs...

Assume that demand for a commodity is represented by the
equation P = 20 – 0.6 Q d, and supply by the equation P = 10 + 0.2
Qs where Qd and Q s are quantity demanded and quantity supplied,
respectively, and P is the Price. Use the equilibrium condition Qs
= Qd
1: Solve the equations to determine equilibrium price.
2: Now determine equilibrium quantity.
3: Graph the two equations to substantiate your answers and
label these two graphs...

Assume that demand for a commodity is represented by the
equation P = 20 – 0.6 Q d, and supply by the equation P = 10 + 0.2
Qs where Qd and Q s are quantity demanded and quantity supplied,
respectively, and P is the Price. Use the equilibrium condition Qs
= Qd
1: Solve the equations to determine equilibrium price.
2: Now determine equilibrium quantity.
3: Graph the two equations to substantiate your answers and
label these two graphs...

Assume that demand for a commodity is represented by the
equation P = 20 – 0.6 Q d, and supply by the equation P = 10 + 0.2
Qs where Qd and Q s are quantity demanded and quantity supplied,
respectively, and P is the Price. Use the equilibrium condition Qs
= Qd
1: Solve the equations to determine equilibrium price.
2: Now determine equilibrium quantity.
3. Make a Table of points and then graph the following
4. Graph Demand...

Q4. Assume that demand for a commodity is represented
by the equation
P = 10 - 0.2Qd
and supply by the equation
P = 2 + 0.2Qs,
where Qd and Qs are quantity demanded and quantity supplied,
respectively ,and P is
price. Using the equilibrium condition Qs = Qd, solve the equations
to determine equilibrium
price and equilibrium quantity. Graph the two equations to
substantiate your answers. Answer
in the space below!

Assume that the demand for a commodity is represented by the
equation Qd = 300-50P and supply by the equation Qs= -100+150P
where Qd and Qs are quantity demanded and quantity supplied,
respectively, and P is price. Using equilibrium condition Qd = Qs,
solve the equation to determine equilibrium price and quantity.

Assume that demand for a commodity is represented by
the equation P = 30 - 0.4Qd and supply by the equation P = 6 +
0.2Qs, where Qd and Qs are quantity demanded and quantity supplied,
respectively and P is price. The market will clear
at
A
P = 14 and Q = 40.
B
P = 40 and Q = 14.
C
P = 20 and Q = 6.
D
P = 6 and Q = 20.

Assume that demand for a commodity is represented by the
equation P = 10 - 0.2Q and supply by the equation
P = 2 + 0.2Q. Find equilibrium price and quantity
(algebraically). Then graph the supply and demand lines, plot
equilibrium point and label axes, equilibrium P* and Q*, vertical
and horizontal intercepts for demand curve, and vertical intercept
for the supply curve.

Consider a market that can be represented by a linear demand
curve, QD = 200 – 2PD, (where QD is the quantity demanded and PD is
the price that demanders pay) and a linear supply curve that QS = ½
PS (where QS is the quantity supplied and PS is the price that
suppliers get).
a. What is the equilibrium price?
b. What is the equilibrium quantity?
c. What is demand elasticity at the equilibrium point?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 17 minutes ago

asked 25 minutes ago

asked 28 minutes ago

asked 42 minutes ago

asked 52 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago