Question

1) The demand and supply for a good are respectively QD = 10 – P and QS = 4 + P. a) Determine the equilibrium price. b) Determine the equilibrium quantity. c) Determine consumers’ expenditures on the good. d) Determine total consumers benefits (understanding that the inverse demand represents the marginal benefit curve). e) Determine the consumer surplus. f) Determine producers’ total revenues. g) Determine the producer surplus. h) Determine the total surplus.

Answer #1

The demand and supply for a good are respectively QD = 16 – 2P +
2I and QS = 2P – 4 with QD denoting the quantity demanded, QS the
quantity supplied, and P the price for the good. Suppose the
consumers’ income is I = 2. 6) Determine the price-elasticity of
demand if P = 2. 7) Determine the income-elasticity of demand if P
= 2. 8) Determine the price-elasticity of supply if P = 4. 9)
Determine consumers’...

Questions 16 to 22 The demand and supply for good x are
respectively QD = 28 – Px + Py/2 and QS = Px – 10 with QD denoting
the quantity demanded for good x, QS the quantity supplied for good
x, Px the price for good x, and Py the price for good y a
substitute to good x. Suppose Py = 4. 16) Determine the cross-price
elasticity of demand at the equilibrium. Suppose the government
imposes a unit...

The demand and supply for a good are respectively P = 20 – QD
and P = - 4 + 2QS. 17) Determine the equilibrium quantity in the
absence of any intervention by the government. 18) Determine the
equilibrium price in the absence of any intervention by the
government. Suppose the government imposes a quota equal to Q = 6.
19) Determine the maximum price consumers are willing to pay to buy
the good when Q = 6. 20) Determine...

Suppose that the demand and supply functions for good X
are:
Qd = 298 - 8P and
Qs = - 32 + 4p
A. Find the equilibrium price and quantity.
B. Sketch this market. [HINT: Be sure to draw the two curves
carefully, using inverse demand and supply functions to calculate
the quantity- and price-axes intercept points.]
C. Use the demand function to calculate consumer surplus.
D. Use the supply function to calculate producer surplus.
E. What is the total...

Suppose the demand curve is given by Qd=75-5P and the supply
curve is given by Qs=P-3. SHOW YOUR WORK in the space below (type
it out, line by line), and solve for the equilibrium price, the
equilibrium quantity, the consumer surplus, the producer surplus,
and the total surplus.

Suppose demand and supply conditions in a market are given by P
= 12 - 2QD and P = 3 + QS respectively. In equilibrium, a market
will usually generate both consumer and producer surplus. Who gets
the most surplus in this market? A. Consumers and producers split
the surplus equally. B. Consumers get more surplus than producers.
C. Producers get more surplus than consumers. D. There is neither
consumer nor producer surplus in this market.

Domestic demand for a good is QD = 3000 - 25P. The domestic
supply of the good is QS = 20P. Foreign producers can supply any
quantity at a price (P) of $30. Is there a shortage or a surplus?
What is the quantity of shortage or surplus?

Suppose a market is characterized by the following supply and
demand equations:
QD=1,000-5P
QS=-500+10P
1.)Determine equilibrium price and quantity.
2.)Suppose that the government taxes production such that for every
unit produced, sellers must pay the government $10. Determine the
new equilibrium price(s) and quantity.
3.)Suppose that instead of taxes, the government imposes a price
floor such that the minimum amount the good can be sold for is
$150. Determine the new equilibrium price and quantity.
4.)Determine producer surplus, consumer surplus,...

1. Consider the following demand and supply functions for a good
or service: Qd = 400 - 5P and Qs= 3P.
a) Graph the supply and demand functions in the typical manner
with price per unit (P) on the Y-axis and quantity on the X-axis.
Make sure to clearly mark X-intercept and Y-intercept on the
graph.
b) What is the slope of each line? Show your calculations.
c) What is the equilibrium price and quantity? Show your
calculations. Show the...

Suppose that the (inverse) demand for Sugar in the US is given
by, P= 75-2 Qd
where P = price per bulk bag (in dollars) and Qd =
quantity demanded (in millions of bulk bags).
Suppose the (inverse) supply of sugar is given by, P= 3
Qs
where P = price per bulk bag (in dollars) and Qs =
quantity supplied (in millions of bulk bags).
a.) Find the equilibrium price and quantity of sugar exchanged
in the US market,...

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