QUESTION 4
- Suppose the market supply for Good X is given by
QXS = -100 + 5PX. Compute and
illustrate with completely labelled diagram the producer surplus if
the equilibrium price of X is $100 per unit (show the relevant
calculation).
- The daily market demand and supply for beef in New york is
given by:
Qd= 16,000 – 1,000P
Qs= 2,000 + 1,000P
The quantity and price are measured in
tonnes and Dollars, respectively.
- Determine the equilibrium quantity and price in the above
market,
- Explain what will happen if the government imposes a price
ceiling of $10 on the chicken.