Question 2. The market supply and demand curves for a product
are:
QS=0.5P (supply curve)
QD=60–2P...
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)
A monopolist faces the following demand curve, marginal
revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal
revenue curve, total cost curve and marginal cost curve for its
product: Q = 200 - 2P
MR = 100 - Q
TC = 5Q MC = 5
a. What is the profit maximizing level of output?
b. What is the profit maximizing price? c. How much profit
does the monopolist earn?
Demand Curve: (100,50), (150, 40), (200, 30), (250, 20),
(300,10)
Supply Curve: (50,20), (100, 30), (150,...
Demand Curve: (100,50), (150, 40), (200, 30), (250, 20),
(300,10)
Supply Curve: (50,20), (100, 30), (150, 40), (200, 50), (250,
60), (300, 70)
18. What is the quantity bought and sold in the market if the
government implements a subsidy of $40/unit?
a) 100 b) 150 c) 200 d) 250
For questions 19 and 20, please use the following information
for the demand curve and supply curve:
QD =1000–2P QS =-200+P
19. What is the quantity bought and sold if...
Consider the market for hiking boots. This market can be
represented by the following supply and...
Consider the market for hiking boots. This market can be
represented by the following supply and demand equations: Q=100–2P
(demand) and Q= –20 +P (supply)
a. Graph the supply and demand curves, labeling the axes
clearly. Calculate the equilibrium price and quantity in this
market (Q represents a pair of boots), and label these points on
the graph.
b. Calculate consumer surplus, producer surplus, and net
benefits in the market for hiking boots.
Let the market demand curve be QD=8-P
and the market supply curve be QS=P. Let
price...
Let the market demand curve be QD=8-P
and the market supply curve be QS=P. Let
price P be measured in $/unit and let quantity Q
be measured in singular units (i.e. simple count).
Solve for the equilibrium price P* and
quantity Q*.
Now, assume the government imposes a $2/unit tax on consumers,
which leads to wedge/gap between the buyers’ price
Pb and the sellers’ price
PS.
Rewrite the demand and supply curves using Pb
and PS, respectively.
Write down the...