Question

1) Suppose the market for potatoes can be expressed as follows: Supply: s = -20 + 10p Demand: d = 400 - 20p a) Solve for the equilibrium price and quantity. b) Solve for the equilibrium when the demand increases to d = 430 - 20p.

Answer #1

**a ) Equilibrium price = $14 and equilibrium quantity =
120**

Explanation:

S = -20 + 10P

D = 400 -20P

At equilibrium , D = S

400 -20P = -20 +10P

30P = 420

P = 420 / 30 = $ 14

Equilibrium Quantity = 400 -20P

= 400 - 20 (14)

=400 - 280 = 120

**b ) Equilibrium price = $15 and equilibrium quantity =
130**

Explanation:

S = -20 + 10P

D = 430 -20P

At equilibrium , D = S

430 -20P = -20 +10P

30P = 450

P = 450 / 30 = $ 15

Equilibrium Quantity = 430 -20P

= 430 - 20 (15)

=430 - 300 = 130

Suppose the market for potatoes can be expressed as
follows:
Demand: QD = 400 – 16P
Supply: QS = –40 + 4P
a) Calculate the equilibrium price and equilibrium quantity.
b) Suppose the government sets a price ceiling of $14 per unit,
what quantity demanded and quantity supplied would be realized?
c) Neatly sketch a diagram to represent parts a and
b on a single graph.
- Make sure to illustrate the equilibrium price and quantity,
the price...

Suppose that supply and demand are given by and
?? = 20 − 2?
?? = ? − 7
A. Determine the equilibrium price and quantity
B. What are the inverse supply and demand functions?
C. What would the new inverse supply function b if there were a
new ad valorum tax of 10 percent of the sales price payable by the
supplier?
D. Draw by hand the shift in the supply curve (old and new
supply curves) as well...

Suppose that the supply schedule of Maine lobsters is as
follows:
Price of lobster Quantity of lobster supplied
(per pound) (pounds)
$ 25 800
$ 20 700
$ 15 600
$ 10 500
$ 5 400
Suppose that Maine lobsters can be sold only in the United States.
The U.S. demand schedule for Maine lobsters is as follows:
Price of lobster Quantity of lobster demanded
(per pound) (pounds)
$ 25 200
$ 20 400
$ 15 600
$ 10 800...

1. The market for toasters is a competitive market. Suppose that
the quantity of toasters supplied per year depends as follows on
the price of a toaster:
Price
(dollars per toaster)
Quantity supplied
(millions of toasters)
32
4.0
34
5.0
36
5.5
38
6.0
40
6.5
a. On a piece of graph paper, plot the supply curve for
toasters.
b. How does the quantity supplied of toasters change when the
price changes?
2. The market for toasters is a competitive...

Suppose the Demand and supply curve for a particular product is
as follows:
D(p)=60-20p
S(p)=20p+20
Suppose city council considers implementing a small lump sum tax
of $T per unit traded (i.e. if the consumer pays p then the
producer receives p-T).
What is the tax incidence on consumers?

Suppose that a market is described by the following supply and
demand equations:
QS = 2P
QD = 400 - 3P
Solve for the equilibrium price and the equilibrium
quantity.
Suppose that a tax of T is placed on buyers, so the new demand
equation is
QD = 400 – 3(P+T)
Solve for the new equilibrium. What happens to the price
received by sellers, the price paid by buyers, and the quantity
sold?
Tax revenue is T x Q. Use...

Q1 Ch1 (20%) a. Supply: Suppose the following information is
known about a market: 1. Sellers will not sell at all below a price
of $2. 2. At a price of $10, any given seller will sell 10 units.
3. There are 100 identical sellers in the market. Assuming a linear
supply curve, use this information to derive the market supply
curve. b. Demand: Suppose the demand for a particular product can
be expressed as Q = 100/p. Calculate the...

Assume the following demand and supply relationships for
American cheese sold in a "model market" in New York. Price is
expressed in dollars and quantity is expressed per pound of
cheese.
Demand: Q = 460 - 20P
Supply: Q = 100 +16P
(a). What is the equilibrium Price? What is the equilibrium
quantity?
(b). Now assume that a Pandemic sets in and the government fixes
the price of cheese at $8.00 per pound. What will be the market
outcome?
You...

Suppose the market for grass seed can be expressed as: Demand:
QD = 200 - 5p
Supply: QS = 40 + 5p
3.1 Calculate the price and quantity in equilibrium
3.2 If the government collects a $5 specific tax from sellers,
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 tax? What is the tax revenue?
3.3 Draw the graph...

6. Suppose the demand equation can be represented as QD = 1200 –
10p and the Supply equation by Qs= 10p.
a. Solve for the equilibrium price and quantity.
b. Say an excise tax of $5 was placed on the buyers. Solve for
the price buyers pay, price that sellers receive, and the quantity
sold in the market after the tax. Show your work and results
graphically.
c. Find the deadweight loss, consumer surplus, producer surplus,
consumer surplus, and tax...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 5 minutes ago

asked 6 minutes ago

asked 10 minutes ago

asked 42 minutes ago

asked 53 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