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 chicken in Kuala Lumpur is given by:
= 16,000 – 1,000P
= 2,000 + 1,000P
The quantity and price are measured in tonnes and RM, respectively.
Determine the equilibrium quantity and price in the above market,
Explain what will happen if the government imposes a price ceiling of RM10 on the chicken.
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