Question

1) Suppose Firm A has a supply curve of Qa = -2 + p and Firm B has a supply curve of Qb = 0.5p. How much is the total supply at a price of $5?

2) Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The supply function is : ln(Q) = 0.400 + 0.450 ln(p), where Q is the quantity of processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand function is ln(Q) = 2.600 - 0.200 ln (p) + 0.150ln (pt) where p(t)

is the price of tomato paste (which is what processing tomatoes are used to produce) in dollars per ton.

How does the quantity of processing tomatoes supplied vary with the price? It might be easier for you to exponentiate both sides of the equation first. Exponentiating both sides of the supply equation, Q= e ^ (0.400 + 0.450 ln(p))

The effect of a change in price on quantity supplied is : dQ/ dp = ____?

3) Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The supply function is: ln(Qs) = 0.2 + 0.55 ln(p), where Q is the quantity of processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand function is: ln(Qd)=2.6−0.2 ln(p) + 0.15 ln (pt), where pt is the price of tomato paste (which is what processing tomatoes are used to produce) in dollars per ton. Suppose Pt = 95. What is the demand function for processing tomatoes, where the quantity is solely a function of the price of processing tomatoes?

ln(Q) = ___ - ____ ln(p)?

4) Consider the demand function for processed pork in Canada, Qd = 716 - 36p + 20pb + 3pc + 0.002Y. The supply function for processed pork in Canada is : Qs = 339 + 47p - 60ph.

p is the price of pork Q is the quantity of pork demanded pb = is the price of beef = $4 per kg pc is the priceo f chicken = $3 per kg Y is the income of consumers = $12,500 ph is the price of a hog = 1.50 per kg Solve for the equilibrium price and quantity for work. 5) Due to a recession that lowered incomes, the 2008 market prices for last-minute rentals of U.S. beachfront properties were lower than usual. Suppose that the inverse demand function for renting a beachfront property in Ocean City, New Jersey, during the first week of August is p = 1500 - Q + (Y/40), where Y is the median annual income of the people involved in this market, Q is quantity, and p is the rental price.The inverse supply function is p = (Q/4) + (Y/50) Derive the equilibrium price, p*, and the quantity, Q*, in terms of Y. The equilibrium quantity, Q*, is |

Answer #1

Consider the daily market for bananas in Australia:
Demand: P = 100 –
5Qd
Supply: P = 10 +
10Qs
where quantity (Q) is measured in 1000 tons (for example, Q = 2
means Q = 2K tons, where K stands for 1000) and price (P) is price
per ton, and the superscripts d and s stand for ‘demand’ and
‘supply’ respectively.
The Equilibrium Price = _____________
The Equilibrium Quantity = ___________
In the problem above, Australian government does...

1)
A firm’s demand equation is given by: Qd = 60 – 60P + 2Y, where
Qd is quantity, P is price, and Y is income. If price increases by
$2 and income increases by $80, then quantity demanded will:
Answers:
increase by 160 units.
increase by 80 units.
decrease by 120 units.
increase by 40 units.
decrease by 60 units.
2)
The demand function for pork is Qd = 300 –
100P
+ 0.01INCOME
where Qd is the tons...

A.1. a. Suppose the demand function P = 10 - Q, and the supply
function is: P = Q, where P is price and Q is quantity. Calculate
the equilibrium price and quantity.
b. Suppose government imposes per unit tax of $2 on consumers.
The new demand function becomes: P = 8 – Q, while the supply
function remains: P = Q.
Calculate the new equilibrium price and quantity. c.
Based on (b), calculate the consumer surplus, producer surplus, tax...

China’s Domestic Supply and Demand for
soybeans per ton is:
QD = 700 –
P QS = 2P – 500
(2 pts.) The equilibrium P* = $_________ and Q* =
_______
(2 pts.) Draw the Supply and Demand curves on a
graph.
(2 pt.) Calculate CS (and show your
work) $_______________

Suppose the supply and demand for a certain textbook are given
by supply: P=(1/2)q ^2 and demand P=(-1/2)q^2+30
where p is the price and q is the quantity. Find the demand
quantity and the supply quantity at a price of
$25
1)The number of books that are demanded at a price of $25
is........
and the number of books supplied at a price of $25 is......
(Round to the nearest whole number as needed.)

Suppose the supply curve for a product is given by the equation
QS = 1000 + P, where price P is measured in dollars and quantity Q
is measured in number of units.
1. Now suppose that the demand curve is given by the equation QD
= 9000 - P - 0.05I, where I is income measured in dollars. If
income is $100,000, what is the current equilibrium price and
quantity?
2. Suppose that income falls from $100,000 to $80,000....

1.A firms Supply and Demand equations are as follows: Supply: P
= 2Q - 70 Demand: P = -2Q + 130 Calculate the X and Y intercept of
Demand. Select one: a. P = $130, Qd = 65 b. P = $65, Qd = 130 c. P
= $70, Qd = 35 d. P = -$70, Qd = 35 e. None of the above
2.
Calculate the X and Y intercept of Supply.
Select one:
a. P = $70, Qs...

Peru Nut Growers Association hires a team of botanists to
develop a new “national nut,” which it intends to export
globally.
The demand curve for Peru Nuts is given by Qd = 120 − 0.03P,
where Q is the quantity in thousand of tons of nuts, and P is the
price of a ton of nuts (in US dollars).
The supply curve for Peru Nuts is given by Qs = 0.11P.
Compute the equilibrium price,
quantity, and producer surplus
for...

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=...

The market for bauxite is perfectly competitive. Market inverse
demand is given by PD(Q)=500-Q, where price is measured
in dollars per ton and Q is measured in million of tons. Market
inverse supply of bauxite is PS(Q)=100+Q, where price is
measured in dollars per ton and Q is measured in millions of
tons.
-Calculate the equilibrium price and quantity in this market.
Represent your solution using a graph.
-Calculate producer and consumer surplus. Identify consumer and
producer surplus on a...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 16 minutes ago

asked 20 minutes ago

asked 20 minutes ago

asked 20 minutes ago

asked 23 minutes ago

asked 27 minutes ago

asked 29 minutes ago

asked 29 minutes ago

asked 32 minutes ago

asked 44 minutes ago

asked 49 minutes ago