Question

Suppose the demand curve is given by Qd=75-5P and the supply curve is given by Qs=P-3. SHOW YOUR WORK in the space below (type it out, line by line), and solve for the equilibrium price, the equilibrium quantity, the consumer surplus, the producer surplus, and the total surplus.

Answer #1

Suppose the market demand curve for a product is given by
QD=100-5P and the market supply curve is given by
QS=5P
a. What are the equilibrium price and quantity?
b. At the market equilibrium, what is the price elasticity of
demand?
Suppose government sets the price at $15 to benefit the
producers.
What is the quantity demanded?
What is the quantity supplied?
What is the amount of the surplus?
Suppose market demand increases to Qd=200-5P.
What is the new equilibrium...

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...

Suppose that the (inverse) demand for Sugar in the US is given
by, P= 75-2 Qd
where P = price per bulk bag (in dollars) and Qd =
quantity demanded (in millions of bulk bags).
Suppose the (inverse) supply of sugar is given by, P= 3
Qs
where P = price per bulk bag (in dollars) and Qs =
quantity supplied (in millions of bulk bags).
a.) Find the equilibrium price and quantity of sugar exchanged
in the US market,...

Suppose demand and supply can be characterized by the following
equations:
Qd = 6 – 2P
Qs = P
Price is in dollars; quantity is in widgets.
For parts (a) and (b), assume there is no tax. Show your work
for each step below.
Find the equilibrium price and quantity algebraically.
Calculate the following:
consumer surplus
producer surplus
total firm revenue
production costs
For parts (c) and (d), assume a tax of $1.50 per widget sold is
imposed on sellers....

Suppose demand and supply are given by Qd = 60 – P
and Qs = P -20
What are the equilibrium quantity and price in this
market?
Determine the quantity demanded, the quantity suppled, and the
magnitude of the surplus if a price floor of $50 is imposed in this
market.
Determine the quantity demanded, the quantity suppled, and the
magnitude of the shortage if a price celling of $32 is imposed in
this market. Also determine the full economic...

Suppose the domestic supply (QS) and demand (QD) for scooters in
China
1- Suppose the domestic supply (QS) and demand (QD) for scooters
in China are given by the following set of equations:
QS = –25 + 10P
QD = 875 – 5P
If China can import scooters from the rest of the world at a per
unit price of $50, how many scooters will be imported, produced and
demanded in China?
a- Quantity Imported = 150, Quantity Produced =...

Suppose demand and supply are given by Qd =
60 - P and Qs = 1.0P
- 20.
a. What are the equilibrium quantity and price in this
market?
Equilibrium quantity:
Equilibrium price: $
b. Determine the quantity demanded, the quantity supplied, and the
magnitude of the surplus if a price floor of $52 is imposed in this
market.
Quantity demanded:
Quantity supplied:
Surplus:
c. Determine the quantity demanded, the quantity supplied, and the
magnitude of the shortage if a price...

1) The demand and supply for a good are respectively QD = 10 – P
and QS = 4 + P. a) Determine the equilibrium price. b) Determine
the equilibrium quantity. c) Determine consumers’ expenditures on
the good. d) Determine total consumers benefits (understanding that
the inverse demand represents the marginal benefit curve). e)
Determine the consumer surplus. f) Determine producers’ total
revenues. g) Determine the producer surplus. h) Determine the total
surplus.

1. A free market has a demand curve Qd = 110 - 5p and supply
curve Qs = -65 + 6p . Calculate the equilibrium price and quantity
of this free market. B. A fixed price of $20 was legally
implemented; How will this price effect this free market? Explain.
C. Draw the supply and demand curve on the Price and Quantity axis;
label all points and show all changes on graph due to a controlled
price.

Consider the market for butter in
Saudi Arabia. The demand and supply relations are given as
follows:
Demand:
QD = 12 - 2P
Supply:
Qs = 3P - 3.
P is the price of butter.
Calculate:
Equilibrium price _____________
2. Equilibrium quantity _____________
Consumer surplus
___________
4. Producer surplus ___________
Draw the demand and supply graphs. Show the equilibrium price
and quantity, consumer surplus and producer surplus in the graph
below. Graphs must be on scale.
Suppose government imposes...

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