Question

Let QD be the quantity of a good demand and QS the quantity supplied. The equations...

Let QD be the quantity of a good demand and QS the quantity supplied. The equations are assumed to be linear to facilitate calculations. Let P=100− 2QD and MC = 2QS Find the socially efficient equilibrium output, price, and the total net bene

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The demand and supply for a good are respectively QD = 16 – 2P + 2I...
The demand and supply for a good are respectively QD = 16 – 2P + 2I and QS = 2P – 4 with QD denoting the quantity demanded, QS the quantity supplied, and P the price for the good. Suppose the consumers’ income is I = 2. 6) Determine the price-elasticity of demand if P = 2. 7) Determine the income-elasticity of demand if P = 2. 8) Determine the price-elasticity of supply if P = 4. 9) Determine consumers’...
55)Suppose Qs is the quantity supplied at a given price for brown rice and Qd is...
55)Suppose Qs is the quantity supplied at a given price for brown rice and Qd is the quantity demanded at the same given price for brown rice. Which of the following market conditions produces an upward movement of the price for brown rice? (a)Qs =1,000, Qd =860 (b)Qs =850, Qd=850 (c)Qs=750, Qd=1,000 (d)Qs=1,000, Qd=1,000 (57)Which of the following pairs of goods would be considered complementary? (a)Coca-Cola and Pepsi (b)Radios and Televisions (c)Computers and computer software (d)Compact discs and cassette tapes...
Assume the following demand and supply equations (price in $, quantity in 000 units): Demand: Qd...
Assume the following demand and supply equations (price in $, quantity in 000 units): Demand: Qd = 240 - 17.5P Supply: Qs = 100 + 8P What is the equilibrium price? What is the equilibrium quantity? Suppose, a seller decides to sell the product at $4 per unit. What will happen?
1. Consider a demand curve of the form QD = 40 - 2P, where QD is...
1. Consider a demand curve of the form QD = 40 - 2P, where QD is the quantity demanded and P is the price of the good. The supply curve takes the form of QS = -4 + 2P, where QS is the quantity supplied, and P is the price of the good. Be sure to put P on the vertical axis and Q on the horizontal axis. a. What is the equilibrium price and quantity? Draw out the supply...
Qd = 240 - 5P Qs = P (a) Where Qd is the quantity demanded, Qs...
Qd = 240 - 5P Qs = P (a) Where Qd is the quantity demanded, Qs is the quantity supplied and P is the Price. Find: (1) the Equilibrium Price before the tax (2) the Equilibrium quantity before the tax (3) buyers reservation price (4) sellers reservation price (5) consumer's surplus before tax (6) producer's surplus before tax (b) Suppose that the government decides to impose a tax of $12 per unit on seller's in the market. Determine: (1) Demand...
Assume that the demand for a commodity is represented by the equation Qd = 300-50P and...
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.
3. Market demand for a good is given by QD= 30- 2P and its market supply...
3. Market demand for a good is given by QD= 30- 2P and its market supply is given by QS=P - 6. (a) Determine the market equilibrium quantity (QM) and price (PM) . (b) If marginal external benefit is 3 at all levels of consumption (i.e. MEB=3), then what is the socially efficient level of production (Q*)? -Provides some work to justiy your answers.
Using the information below answer the following questions. If demand is :Qd = 800 - 5...
Using the information below answer the following questions. If demand is :Qd = 800 - 5 P   and supply is: Qs = 125 + 15 P Where: Qd = quantity of the good demanded.               Qs = quantity of the good supplied.                 P = price of the good. Part 1: The equilibrium price is ______ Part 2: The equilibrium quantity is _________ Part 3: An imposed price of 20.25 yields an excess (demand/supply) of _____ units Part 4: Assuming...
The demand for a product is Qd=320-8p-2px and supply is Qs=20+4p, where Q is the quantity...
The demand for a product is Qd=320-8p-2px and supply is Qs=20+4p, where Q is the quantity for the product, in thousands of units, P is the price of the product, and Px is the price of the another good X 1) When Px =$30, what is the equilibrium price and quantity sold for the product? 2) At the equilibrium price and quantity, what is the price elasticity of demand for the product?
8.2 In Smalltown, Pennsylvania, the demand function for men's haircuts is Qd=500−30p+0.08Y, Qd=500−30p+0.08Y, where Qd Qd...
8.2 In Smalltown, Pennsylvania, the demand function for men's haircuts is Qd=500−30p+0.08Y, Qd=500−30p+0.08Y, where Qd Qd is quantity demanded per month, p the price of a haircut, and Y the average monthly income in the town. The supply function for men's haircuts is Qs=100+20p−20w, Qs=100+20p−20w, where Qs Qs is the quantity supplied and w the average hourly wage of barbers. If Y=$5,000 Y=$5,000 and w=$10, w=$10, use Excel to calculate quantity demanded and quantity supplied for p=$5, p=$5, $10, $15,...