Question

The demand curve of a perfectly competitive product is described by the equation:     P =...

The demand curve of a perfectly competitive product is described by the equation:
    P = $1000 – Q    where Q = thousands
The supply curve is given by
    P = $100 + 2Q     where Q = thousands
Graph the demand and supply curves; use a grid size of 100. Calculate the equilibrium price and quantity (carefully state the units).  Find the consumer surplus CS, the producer surplus PS, and the deadweight loss DWL, carefully stating the units.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The market for apples is perfectly competitive, with the market supply curve is given by P...
The market for apples is perfectly competitive, with the market supply curve is given by P = 1/8Q and the market demand curve is given by P = 40 – 1/2Q. a. Find the equilibrium price and quantity, and calculate the resulting consumer surplus and producer surplus. Indicate the consumer surplus and producer surplus on the demand and supply diagram. b. Suppose the government imposes a 10 dollars of sale tax on the consumer. What will the new market price...
Suppose a perfectly competitive market has the following inverse supply and demand curves: Supply: P= 5+2Q...
Suppose a perfectly competitive market has the following inverse supply and demand curves: Supply: P= 5+2Q Demand: P = 50-Q. 1) Solve for the perfectly competitive Pe and Qe, and calculate consumer+producer surplus at Pe, Qe.
(a) Consider a monopoly market with the following demand equation for a good Z. P =...
(a) Consider a monopoly market with the following demand equation for a good Z. P = 100 – 0.2 Q Suppose fixed cost is zero and marginal cost is given by MC = 20. Answer the following questions. (i) Based on the information given, draw the diagram which shows the marginal revenue (MR) curve, marginal cost (MC) curve and the demand (D) curve of the monopoly. Show the value of X and Y intercepts for these curves. (ii) Explain why...
1.Consider a single-price monopolist facing a demand curve of , where P is market price and...
1.Consider a single-price monopolist facing a demand curve of , where P is market price and q is quantity. The monopolist incurs $40 as fixed cost. The monopolist’s variable cost function is given by , where is quantity. In this market, what is the consumer surplus (CS), producer surplus (PS), monopolist’ profits ( and deadweight loss (DWL)? Group of answer choices a. CS=1000; PS=1250; =1210; DWL=0 b. CS=625; PS=1250; =1250; DWL=1250 c. None of the other answers is correct d....
Consider a market with a perfectly elastic demand curve at p∗ = 1,763 and a perfectly...
Consider a market with a perfectly elastic demand curve at p∗ = 1,763 and a perfectly inelastic supply curve at q∗ = 452. What is the Consumer Surplus? What is the Producer Surplus?
The demand and supply curves for Fuji apples are given by QD = 50 – 6P...
The demand and supply curves for Fuji apples are given by QD = 50 – 6P and QS = 4P – 2, where P is price per bag and Q is in thousands of bags. What are consumer surplus and producer surplus at the equilibrium price? Answer Choices: CS = $29,422; PS = $44,180 CS = $15,006; PS = $7,657 CS = $856,000; PS = $1,126,113 CS = $450; PS = $375
Consider a market with a perfectly elastic demand curve at p∗ = 1,763 and a perfectly...
Consider a market with a perfectly elastic demand curve at p∗ = 1,763 and a perfectly inelastic supply curve at q∗ = 452. What is the Consumer Surplus? What is the Producer Surplus? (15%)
Deadweight Loss] Suppose the market for corn in Banana Republic is competitive. The domestic supply and...
Deadweight Loss] Suppose the market for corn in Banana Republic is competitive. The domestic supply and demand function of corn is Qs = 10P and Qd = 100 − 10P, respectively. Both of them measured in billions of bushels per year. (a) Calculate the equilibrium price and quantity, consumer surplus (CS), and producer surplus (PS). (b) Suppose the government offers a subsidy of $2 per bushel to the firms. In equilibrium, the consumers are paying $4 per bushel and the...
In a perfectly competitive market, the supply function is P= 1 + 2Q, and the demand...
In a perfectly competitive market, the supply function is P= 1 + 2Q, and the demand function is P = 25 - Q. Hence, in this market, consumer surplus is _____ and producer surplus is _____. If this market was to become the monopoly of a single firm with a marginal cost of production equal to 11, then the welfare loss would be ____. a) 30; 60; 3 b) 32; 64; 1.5 c) 32; 64; 3 d) 62; 34; 6
A market has a demand curve given by P = 800 – 10Q where P =...
A market has a demand curve given by P = 800 – 10Q where P = the price per unit and Q = the number of units. The supply curve is given by P =100 + 10Q.(10 points) Graph the demand and supply curves and calculate the equilibrium price and quantity in this market.(5 points) Calculate the consumer surplus at equilibrium.(5 points) Calculate the producer surplus at equilibrium.(5 points)(5 points) Calculate the total surplus at equilibrium
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT