Question

The demand for pizza is represented by P= 10-Qd/4, and the supply of pizza is represented by Ps= 4+1s/2, and Q in thousands and P in dollars. The market for pizza is perfectly competitive. Suppose a price floor of $1 was set above the equilibrium price. What would be the result?

Answer #1

The demand for pizza in a large town is written as: Qd = 26 -
10P + 5Pb - Ps + 10Y, where Qd is the quantity demanded, P is the
price of pizza, Pb is the price of burittos, Ps is the price of
soft drinks sold in the pizza restaurants, and Y is personal income
per month (in thousand dollars). Suppose Pb = $4; Ps = $1 and Y = 3
(in thousand dollars) The supply of pizza...

Suppose the demand and supply curves for sparkling cider are
given by:
QD = 110 – 20P
QS = -32 + 13P
where QD is the quantity of sparkling cider demanded (in
thousands of bottles), QS is the quantity supplied, and P is the
price of sparkling cider (in dollars per bottle).
a. Find the equilibrium price and quantity of sparkling cider.
Round P to the nearest cent (hundredth) and Q to the nearest whole
number.
b.If price is set...

Suppose the demand and supply curves for a large specialty
pizza are given by:
Qd = 120 – 10P
Qs = -30 + 5P.
Using the demand and supply functions above, the equilibrium
price of a pizza is ____, and the equilibrium quantity is ____.
Illustrate your answer.
Compute Price elasticity of demand and supply at this
equilibrium.
Compute CS and PS and illustrate on a graph.
Suppose that the government decrees that a specialty cannot be
sold above $8....

Suppose the demand and supply curves for pizza is given
by:
Qd =500 - 40P
and the market supply for pizza is given by:
Qs = 20P – 100
where P= price (per pizza).
In equilibrium, how many pizzas would be sold and at what
price?
Determine the quantity demanded and quantity supplied if the pizza
price is set at $8.00. Explain the market adjustment process.
Suppose the price of hamburgers, a substitute for pizza, doubles.
This leads to a...

Let’s say the demand for burritos can be represented by Qd=
10-3P and the supply can be represented by Qs= 2+P. At
equilibrium:
a
P = 4, Q= 2.
b
P= 2, Q= 4.
c
P = 4, Q= 4.
d
P = 2, Q = 5.
We refer to a situation where Qs>Qd as a _____. Price will
____ until mkt equilibrium is achieved.
a
Shortage, increase
b
Surplus, decrease
c
Surplus, increase
d
Shortage, decrease
Qd= 800-16P...

1. The demand for a slice of pizza in NYC is: Qd = 10
- 4P
The supply of a slice of pizza in NYC is: Qs = 3 +
3P
Refer to above information. If P = $2, is there a surplus or
shortage? What is the size of the surplus or shortage? (6
pts)
2. Consider the demand curve QD = 6 – 3P and the
supply curve QS = P + 5. What is the price elasticity...

The demand and supply for Fuji apples are given by
QD = 17,500 - 25 P and
QS = 10 P, where P is price
per pound and Q is pounds of apples. What is the consumer
surplus and producer surplus at the equilibrium?
A.
CS = $500,000; PS = $1,250,000
B.
CS = $750,000; PS = $1,250,000
C.
CS = $500,000; PS = $750,000
D.
CS = $1,250,000; PS = $500,000
The market for plywood is characterized by the...

Question 2. The market supply and demand curves for a product
are:
QS=0.5P (supply curve)
QD=60–2P (demand curve)
where Q is the quantity of the product and P is the market
price.
(1). Calculate the equilibrium price, equilibrium quantity and
total social welfare. (10 points)
(2). Suppose that the market has changed from a perfectly
competitive market to a monopoly market, calculate the new
price–output combination and the total deadweight loss in the
monopoly market. (10 points)

1. Demand and supply curves can be represented with equations.
If Qd = 90 - 2P and Qs = P, then equilibrium price P* and
equilibrium quantity Q* are
a. P* = 30, Q* = 60
b. P* = 60, Q* = 30
c. P* = 30, Q* = 30
d. P* = 60, Q* = 60
2.
Suppose that scientists find evidence that coffee consumption
lowers cholesterol. If so,
a. demand for coffee would remain the same
b. quantity...

Let the market demand curve be QD=8-P
and the market supply curve be QS=P. Let
price P be measured in $/unit and let quantity Q
be measured in singular units (i.e. simple count).
Solve for the equilibrium price P* and
quantity Q*.
Now, assume the government imposes a $2/unit tax on consumers,
which leads to wedge/gap between the buyers’ price
Pb and the sellers’ price
PS.
Rewrite the demand and supply curves using Pb
and PS, respectively.
Write down the...

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