Question

My professor posed a question for microecon stating: Demand: Qd=100-2p Supply: Qs=8p. He said to compute equilibrium price and quantity from this, and his answers ended up being: Qs=Qd-> 8p=100-2p->10p=100->P=100/10=10 Q=8 x 10=80. I'm unsure how he got 10p earlier in the computation or how he solved the question in general.

Answer #1

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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. Suppose the demand for village defense in Temeria is
Qd=300-2P, and the supply is Qs=4P.
a. Graph the supply and demand curves. (3 points)
b. Solve for the equilibrium price and quantity. Show this point
on your graph from part (a). (5 points)
c. How much consumer surplus is created in this market? How much
producer surplus? (4 points)
d. Suppose the King of Temeria puts a tax of 10 orens per unit
on village defense. Write an equation...

In a perfectly competitive market, market demand is QD = 380 –
2P and market supply is QS = 2P - 20. Each
firm has short-run MC = 5Q and ATC = 2.5Q + (100/Q) (ATC is at
minimum when Q = 6.32).
4. How much output will each firm produce?
a.
180
b.
10
c.
20
d.
100
5. What is the profit/loss for each firm in the short-run?
a.
$-7, 000
b.
$900
c.
$2, 500
d.
$0...

Suppose Qd=40-P and Qs= -2+2P. If Price equals 20, quantity
demanded will be
Question 16 options:
22
18
40
10
20
Question 17 (1 point)
Suppose Qd=40-P and Qs= -2+2P. What is the equilibrium price in
this market?
Question 17 options:
14
2
13
20
12.66
Question 18 (1 point)
Suppose Qd=40-P and Qs= -2+2P. What is the consumer surplus at
equilibrium?
Question 18 options:
39
676
169
338
14
Assume at a price of $22, consumer bought 180 units...

Suppose a market’s demand and supply curves take on the
following characteristics:
QD = 100 – 2.9(P) + 0.93(Y – T)
QS = 2(P)
where:
QD quantity demanded
QS quantity supplied
P price of the commodity
Y personal income
T personal taxes
Given the above model, please answer the following
questions:
1. What is the market-clearing price and
quantity if personal taxes (T) equal zero and personal income (Y)
is $400?
2. Suppose a personal tax rate of 20 percent...

11.
Use the following demand and supply functions to answer the
question below:
Demand: Qd = 900 - 60P .
Supply: Qs = -200 + 50P .
Equilibrium price and output are:
A.
P = $7 and Q = 480.
B.
P = $10 and Q = 300.
C.
P = $20 and Q = 150.
D.
P = $100 and Q = 5,300.
E.
None of the above.
16. In a monopolistically competitive industry in long-run
equilibrium
A.
Each...

1. Careful market research has determined the following weekly
supply and demand schedules for ballpoint pens in Cambridge,
MA:
QD =12 - P Qs = 2P
P: Dollars/pen Q: Thousands of pens/ week
a. Find the equilibrium price and quantity in the Cambridge
ballpoint pen market. Label your graphs, including where each curve
hits the relevant axis. (Remember quantity here is measured in
thousands of pens per week)
a.1 The equilibrium price in the Cambridge ballpoint pen market
is _______...

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