Question

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.

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 ?

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 = 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
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 = -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 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
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
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 = 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
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 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

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 8 minutes ago

asked 15 minutes ago

asked 17 minutes ago

asked 22 minutes ago

asked 22 minutes ago

asked 31 minutes ago

asked 37 minutes ago

asked 41 minutes ago

asked 51 minutes ago

asked 54 minutes ago

asked 55 minutes ago