Question

Suppose the market demand curve for a product is given by
Q^{D}=100-5P and the market supply curve is given by
Q^{S}=5P

a. What are the equilibrium price and quantity?

b. At the market equilibrium, what is the price elasticity of demand?

Suppose government sets the price at $15 to benefit the producers.

- What is the quantity demanded?
- What is the quantity supplied?
- What is the amount of the surplus?

Suppose market demand increases to Qd=200-5P.

- What is the new equilibrium price?
- What is the new equilibrium quantity?
- At this new market equilibrium, what is the own-price elasticity of demand?
- Has demand become more or less elastic at this new elasticity?

Answer #1

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.

A market is described by the following supply and demand
curves:
QS = 2P
QD = 400 - 3P
Solve for the equilibrium price and quantity.
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Suppose that the market demand and supply for milk is given
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Qd =120−6P
and
Qs = 12P − 60
a. Find the market equilibrium quantity, and the equilibrium price.
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b. Determine the quantity demanded, the quantity supplied, and
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is imposed in this market. (5 points)
c. Determine the quantity demanded, the quantity supplied, and
the magnitude of the surplus (or shortage) if a price...

Suppose demand and supply are given by Qd =
60 - P and Qs = 1.0P
- 20.
a. What are the equilibrium quantity and price in this
market?
Equilibrium quantity:
Equilibrium price: $
b. Determine the quantity demanded, the quantity supplied, and the
magnitude of the surplus if a price floor of $52 is imposed in this
market.
Quantity demanded:
Quantity supplied:
Surplus:
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Suppose a market is characterized by the following supply and
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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,...

Consider a market that can be represented by a linear demand
curve, QD = 200 – 2PD, (where QD is the quantity demanded and PD is
the price that demanders pay) and a linear supply curve that QS = ½
PS (where QS is the quantity supplied and PS is the price that
suppliers get).
a. What is the equilibrium price?
b. What is the equilibrium quantity?
c. What is demand elasticity at the equilibrium point?

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’...

1. A free market has a demand curve Qd = 110 - 5p and supply
curve Qs = -65 + 6p . Calculate the equilibrium price and quantity
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implemented; How will this price effect this free market? Explain.
C. Draw the supply and demand curve on the Price and Quantity axis;
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Suppose the market for grass seed can be expressed as: Demand:
QD = 200 - 5p
Supply: QS = 40 + 5p
3.1 Calculate the price and quantity in equilibrium
3.2 If the government collects a $5 specific tax from sellers,
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3.3 Draw the graph...

in
a competitive market, demand is described by qd = wpp - 5p, and
supply is qs = 100 + 5p. suppose a specific or unit tax of $10 per
unit of quantity traded is imposed on the consumers. what is the
equilibrium quantity after the tax is imposed?
qd=
200 -5p

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