Question

a) Suppose the market is defined by Demand: Q = 138 – 2P Supply: Q =...

a) Suppose the market is defined by

Demand: Q = 138 – 2P

Supply: Q = 5 + 4P

At a price of P = 38, what is the size of the surplus that will exist in the market?

b) Suppose the market is defined by

Demand: Q = 159 – 3P

Supply: Q = 5 + 2P

At a price of P = 15, what is the size of the shortage that will exist in the market?

c)

A demand equation for a product is given by

Q = 66 - 2P

Find the total revenue generated by sales in the market at a price of P = 4.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

See images for answers

if you have any doubt ask in comment i will reply asap.

If you like the answer give thumbs up.

Thank you ?

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose the market demand is given by Q = 30 - 2P , and the market...
Suppose the market demand is given by Q = 30 - 2P , and the market supply is given by Q = - 15 + 3P a)What is the value of Consumer Surplus when the market is in equilibrium? CS (euilibrium)= b) Now suppose a Price Floor is set at $11. Calculate the Consumer Surplus after the Price Floor is imposed. CS (Price Floor)=
A market is described by the following supply and demand curves: QS = 2P QD =...
A market is described by the following supply and demand curves: QS = 2P QD = 400 - 3P Solve for the equilibrium price and quantity. If the government imposes a price ceiling of $70, does a shortage or surplus (or neither) develop? What are the price, quantity supplied, quantity demanded, and size of the shortage or surplus? If the government imposes a price floor of $70, does a shortage or surplus (or neither) develop? What are the price, quantity...
Suppose that a market is described by the following supply and demand equations: QS = 2P...
Suppose that a market is described by the following supply and demand equations: QS = 2P QD = 400 - 3P Solve for the equilibrium price and the equilibrium quantity. Suppose that a tax of T is placed on buyers, so the new demand equation is QD = 400 – 3(P+T) Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold? Tax revenue is T x Q. Use...
1. The market demand and supply was given as follow: Qd = 10 – 2P Qs...
1. The market demand and supply was given as follow: Qd = 10 – 2P Qs = -5 + 3P a) Compute for the Price equilibrium b) Compute for the Quantity equilibrium c) Plot/graph the following equation. 2. Given the equation, find the equilibrium price and quantity of the following market and plot the equation. 13P – Qs = 27 Qd + 4P – 24 = 0
Suppose the market demand function is Q = 120 – 2P, and the marginal cost (in...
Suppose the market demand function is Q = 120 – 2P, and the marginal cost (in dollars) of producing the product is MC = Q, where P is the price of the product and Q is the quantity demanded and/or supplied. How much would be supplied by a competitive market? (Hint: In a perfect competition, the profit maximization condition is MR=P=MC) Compute the consumer surplus and producer surplus. Show that the economic surplus is maximized.
Suppose the market for grass seed is expressed as: Demand: Q D = 100 - 2p...
Suppose the market for grass seed is expressed as: Demand: Q D = 100 - 2p Supply: Q S = 3p Price elasticity of supply is constant at 1. If the supply curve is changed to Q = 8p, price elasticity of supply is still constant at one. Yet with the new supply curve, consumers pay a larger share of a specific tax. Why?
here are the demand and supply curves for a competetive market Q=70 -P and Q= -20+2P...
here are the demand and supply curves for a competetive market Q=70 -P and Q= -20+2P i. Calculate the equilibrium in the market. ii. calculate the consumer supply, producer supply, and total surplus in this competetive free market. (For parts iii and iv) Now suppose the government intervenes and wants to impose a price ceiling in this market. iii. The government hires you to give advice. What do you recommend the government set the price ceiling to be for it...
The demand for skateboards in Vermillion is Q = 500−2P and the supply curve is Q...
The demand for skateboards in Vermillion is Q = 500−2P and the supply curve is Q = 1/2 P. The government 2 decides to raise revenue by taxing consumers $25 for each skateboard purchased. (a) Graph the supply and demand curves and calculate the consumer and producer surplus that would exist if there were no tax in the market. (b) Show how the tax will change the market equilibrium price and quantity. Identify the price paid by consumers and the...
1. The demand for a slice of pizza in NYC is: Qd = 10 - 4P...
1. The demand for a slice of pizza in NYC is: Qd = 10 - 4P The supply of a slice of pizza in NYC is: Qs = 3 + 3P Refer to above information. If P = $2, is there a surplus or shortage? What is the size of the surplus or shortage? (6 pts) 2. Consider the demand curve QD = 6 – 3P and the supply curve QS = P + 5. What is the price elasticity...
Consider a market for oil. Demand and supply of oil are given as shown. The demand...
Consider a market for oil. Demand and supply of oil are given as shown. The demand for oil is: Q = 12 - 2P The supply of oil is: Q = 4P. What is the equilibrium price of oil? (Using the two equations, solve for P) Consider a market for oil. Demand and supply of oil are given as shown. The demand for oil is: Q = 12 - 2P The supply of oil is: Q = 4P. What is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT