Question

Market Balance

A) The generalized offer function of a product is Qs = 20 + 3p - 4Pi + 5 F

Simplify the offer function in Pi = 20 and F = 60

If the simplified function of the demand of the product is Qd = 300 - 3p; determine the price and the equilibrium quantity of the product, using the function of the offer obtained in part A.

Answer #1

We are provided the generalized offer function of a product is Qs = 20 + 3p - 4Pi + 5 F

Substitute the values of Pi = 20 and F = 60 in the function to get

Qs = 20 + 3p - 4*20 + 5*60

Qs = 240 + 3p.

This is the simplified function of the supply function.

Now the demand of the product is Qd = 300 - 3p; Find the equilibrium price and the equilibrium quantity

240 + 3p = 300 - 3p

p = 60/6 = 10

and required quantity is 240 + 3*10 = 270 units.

Price is 10 and quantity is 270

(b) Given the following demand & supply functions for a
product,
qd=4p^2-25p+300 , qs=3p^2-200
Determine the market equilibrium price & quantities?

Use the following general linear supply function to answer the
next question: Qs = 60 + 8P - 4PI + 20F, where Qs is the quantity
supplied of the good, P is the price of the good, PI is the price
of an input, and F is the number of firms producing the good. When
PI = $20 and F = 60, the INVERSE supply function is

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 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...

Consider the following supply and demand functions
qD = 12-3p
qS = -3 + 2p
a) Plot the supply and demand functions.
b) What are the equilibrium price and quantity?
c) At the equilibrium price and quantity, what is the price
elasticity of demand?
d) Interpret the price elasticity of demand. How much will
quantity change if the price increases by 1%?
e) Suppose I were to calculate an income elasticity of e = 0.5
What does this imply about...

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)

The demand for a product is Qd=320-8p-2px and supply is
Qs=20+4p, where Q is the quantity for the product, in thousands of
units, P is the price of the product, and Px is the price of the
another good X
1) When Px =$30, what is the equilibrium price and quantity sold
for the product?
2) At the equilibrium price and quantity, what is the price
elasticity of demand for the product?

Please assist with following:
Q2. Consider the
general supply function:
Qs = 1,000
+ 20 P - 9 PI +25 F
where
Qs= quantity supplied, P = price of
the commodity, PI = price of a key input in the
production process, and F = number of firms producing the
commodity.
a. Interpret the slope
parameters on P, PI, and F. (1
point)
b. Derive the equation
for the supply function when PI= $480 and
F = 60. (1 point)...

Use the following general linear supply function:
Qs= 40 + 6P −
8PI + 10F
where Qs is the quantity supplied of the
good, P is the price of the good,
PI is the price of an input, and
F is the number of firms producing the good. Suppose
PI = $40, F = 50, and the
demand function is Qd= 700 − 6P, then
if government sets a price of $50 what will be the result?

Question: Suppose you have been hired by a research firm trying
to understand the market for Widgets (a hypothetical product). Your
analysis of the data indicates that the Demand curve for Widgets is
estimated to be linear and given by equation Qd =
100 – P and the Supply curve for Widgets appears to be linear
as well and is estimated as Qs = 3P – 20.
Graphically draw these two curves, labeling all relevant points
(such as intercepts for...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 19 minutes ago

asked 30 minutes ago

asked 42 minutes ago

asked 55 minutes ago

asked 57 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago