Question

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 the equilibrium quantity of oil
sold?**

What is the P-intercept of the Q = 12 - 2P function?

Answer #1

**Finding Equilibrium Price and Equilibrium
Quantity**

The demand for oil is: Q = 12 - 2P

The supply of oil is: Q = 4P.

At Equilibrium Price Quantity Demanded is equal to Quantity Supplied

12 - 2P = 4P

-4P -2P = -12

6P = 12

P = 12 / 6 = 2

Put P = 2 in above equation, we get

Quantity Demanded = 12 - (2 * 2) = 12 - 4 = 8

Quantity Supplied = 4 * 2 = 8

Equilibrium Price = $2

Equilibrium Quantity = 8

**Finding P Intercept**

Q = 12 - 2P

To Find P Intercept, we will have to put Q = 0

Put Q = 0, we get

12 - 2P = 0

2P = 12

P = 12 / 2 = 6

P-Intercept = (0, 6) . As P is price and it is generally represented on y axis.

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...

Given the data below for the oil market, show a supply and
demand diagram, determine the linear equations for demand and for
supply, and find the equilibrium price and quantity in the market.
Find both sets of equations for Q = f(P), and P = f(Q).
QD
P
QS
83
60
80
82
70
82
81
80
83
80
90
83
79
100
84
78
110
85
77
120
86
76
130
86
76
140
87
75
150
88
Would...

Demand function: P = 7 – 2Q Supply function: P = 4 + Q Where P
is the farm price in $/bushel and Q is quantity in billions
(1,000,000,000s) of bushels sold. 1. a. Graph the Demand and Supply
curves for wheat and find the equilibrium price and quantity of
wheat sold in this competitive market. You can solve graphically or
algebraically as two equations with two unknowns. Show your
calculations.

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.

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...

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...

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

Competitive Markets
Consider a village’s competitive market for rice. The
daily market demand for rice (in bushels per day) is given by the
equation:
P = 18 – 2Q
The market supply of rice is given by the equation:
P = 3 + Q
These equations are plotted below (with some labels missing that
you will be asked to fill in):
Given this information, answer the following:
(20 pts.) Using the equations for demand and supply given in
the instructions...

1. Consider the following demand and supply curves:
P
20
18
16
14
Q
0
1
2
3
P
2
3
4
5
Q
0
1
2
3
a. What is the equation of this demand function?
b. What is the equation of this supply function?
c. Solve for equilibrium price and quantity.
D. The market demand and supply for jet fuel is provided by the
following functions: Qd = 140 - P Qs = -160 + 4P Where: P=...

Suppose that a market is described by the following supply and
demand equations:
QS = 2P
QD = 400 - 3P
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 your answer from part (b) to solve for
tax...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 7 minutes ago

asked 8 minutes ago

asked 13 minutes ago

asked 18 minutes ago

asked 26 minutes ago

asked 30 minutes ago

asked 52 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago