Question

For the following set of demand and supply, equations do the following, Find the equilibrium price...

For the following set of demand and supply, equations do the following,

  1. Find the equilibrium price and equilibrium quantity for each set of equations.
  2. Draw each set of equations in a clearly labeled graph and show the equilibrium P and Q.
  3. Calculate the consumer surplus at the equilibrium P and Q found in b.
  4. If the price were to increase, calculate the loss in the consumer surplus. Calculate the total new consumer surplus.
  5. If the price were to decrease, calculate the gain in the consumer surplus. Calculate the total new consumer surplus.
  6. Draw c, d and e showing all the points/areas.

Show all your workings*

Equation Set One

P=50-2Q

P=20+0.5Q   

Equation Set Two

P=5000-0.5Q

P=250+0.5Q   

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
4.Consider the following supply and demand equations: Supply:p= 10 +q Demand:p= 100−2q Show your work as...
4.Consider the following supply and demand equations: Supply:p= 10 +q Demand:p= 100−2q Show your work as your response to the following questions. (a) What is the market equilibrium price and quantity?(5%) (b) Draw a diagram to clearly show the market equilibrium.(5%) (c) What is the Consumer Surplus at equilibrium?(5%) (d) What is the Producer Surplus at equilibrium?(5%) (e) What is the Total Surplus at equilibrium?(5%)
A market has supply and demand curves that follow the following set of equations: Supply →...
A market has supply and demand curves that follow the following set of equations: Supply → P = 4QS + 10 Demand → P = -5QD + 280. For both of these problems pictures are not required but the problems may be much easier if you draw some. a) Find the equilibrium price and quantity in this market and the consumer and producer surplus from the equilibrium price and quantity. (1 point) b) If there is a ceiling price in...
1 Demand and Supply - Market Equilibrium ​ Suppose the demand and supply of meals in...
1 Demand and Supply - Market Equilibrium ​ Suppose the demand and supply of meals in the Free Spech Cafe in Berkeley is given by Q^D =50−2p and Q^S =2p−10. ​ 1. Calculate the market equilibrium, i.e. price and the number of lunches consumed. 2. Draw this scenario in a graph clearly labelled. 3. What is the consumer surplus?
Suppose demand for apartments in Honolulu is P=6600-0.5q and supply is P=0.25q. Derive the equilibrium price...
Suppose demand for apartments in Honolulu is P=6600-0.5q and supply is P=0.25q. Derive the equilibrium price and quantity for apartments. Show on a graph.  Calculate the producer and consumer surplus. If the city of Honolulu passes a rent control, forcing a rent (or price) ceiling equal to $1800, what is the quantity supplied, quantity demanded, and the shortage?  Calculate the new consumer surplus, producer surplus, and deadweight loss, and show these on your graph. If a black market develops after the rent...
Suppose the demand and supply for a product is given by the following equations: p=d(q)=−0.8q+150 (Demand)...
Suppose the demand and supply for a product is given by the following equations: p=d(q)=−0.8q+150 (Demand) p=s(q)=5.2q (Supply) For both functions, q is the quantity and p is the price. Find the equilibrium point. (Equilibrium price and equilibrium quantity) (1.5 Marks) Compute the consumer surplus. (1.5 Marks) Compute the producer surplus. (1.5 Marks)
Use the following equations to answer the remaining homework questions: Demand: P = 80 – 3Q...
Use the following equations to answer the remaining homework questions: Demand: P = 80 – 3Q Supply: P = 2Q + 20 What is the equilibrium price? What is the equilibrium quantity? What is the consumer surplus? What are total expenditures for consumers? What is producer surplus? What is the total revenue for the producer?
A person’s demand and supply equations for pork per month are as follows: Demand: Q =...
A person’s demand and supply equations for pork per month are as follows: Demand: Q = 25 – 5*P Supply : Q = -20 + 10*P Required: a. What are the market equilibrium price ($/kg) and quantity (kgs/month) for pork? b. At the market equilibrium price, what are the consumer surplus and producer surplus?
Problem II: (T1)The demand function for widgets is given by P = 270 - 3Q and...
Problem II: (T1)The demand function for widgets is given by P = 270 - 3Q and the supply is P = 20 + 2Q. a) Find the equilibrium price and quantity of widgets. b) Is demand elastic or inelastic at the equilibrium point? (Calculate the elasticity of de­mand at the equilibrium and classify it as elastic or inelastic.) c.) Draw a graph showing the market equilibrium point and highlight the consumer surplus. Clearly label your axes and intercepts. Calculate the...
Suppose that the demand equation: P = 6 – Q and supply equation: P = Q....
Suppose that the demand equation: P = 6 – Q and supply equation: P = Q. a. Calculate the price elasticity of demand at equilibrium. b. Calculate the equilibrium price and quantity, and consumer surplus and producer surplus. c. Suppose government imposes a unit tax of $1 on producers. Derive the new supply curve and also calculate the new equilibrium price and quantity. d. Calculate tax revenue and the deadweight loss of this tax.
Suppose demand for apartments in Honolulu is P=6000-0.5q and supply is P=0.25q. a. Derive the equilibrium...
Suppose demand for apartments in Honolulu is P=6000-0.5q and supply is P=0.25q. a. Derive the equilibrium price and quantity for apartments. Show on a graph. Calculate the producer and consumer surplus. b. If the city of Honolulu passes a rent control, forcing a rent (or price) ceiling equal to $1600, what is the quantity supplied, quantity demanded, and the shortage? Calculate the new consumer surplus, producer surplus, and deadweight loss, and show these on your graph. c. If a black...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT