Question

The supply curve in a market is given by P = 13 + 1.5(Q). The first...

The supply curve in a market is given by P = 13 + 1.5(Q). The first demand curve (D 1) is P = 52 - 2.0(Q), while the second demand curve (D 2) is P = 36.4 - 2.0(Q).

The change in price is a decrease of $____.

A.
B.
C.
D.
E.
F.
G.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Supply curve : P= 13+ 1.5 Q

Demand curve : P= 52- 2Q

By equating demand and supply we get :

13 +1.5 Q= 52- 2Q

3.5Q= 39

Q = 11.14 (Equilibrium quantity)

P= 13+1.5(11.14)

P= $ 29.71 (Equilibrium price)

Now,the demand curve is P=36.4 - 2Q

Equate demand and supply we get :

13+1.5Q = 36.4- 2Q

3.5Q = 23.4

Q = 6.69 (New equilibrium quantity)

P= 13+ 1.5(6.69)

P=$ 23.03 (New equilibrium price)

This implies that the change in price is a decrease of $(29.71- 23.03)= $6.68.

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
Given a demand curve of P = 77 - Q and a supply curve of P...
Given a demand curve of P = 77 - Q and a supply curve of P = 1 + Q, with a subsidy of 24, solve for the resulting quantity.
Given a demand curve of P = 72 - Q and a supply curve of P...
Given a demand curve of P = 72 - Q and a supply curve of P = 2 + 1.5Q. Solve for DWL with a tax of 30 (Answer 1) and with a tax of 60 (Answer 2).
(a) Draw a Supply Curve and the Demand Curve for the Milk market. Label the supply...
(a) Draw a Supply Curve and the Demand Curve for the Milk market. Label the supply S1 and the demand D1. Label the vertical axis P for Price and label the horizontal axis Q for Quantity of Milk. Label on the vertical axis the equilibrium price as P1. Label on the horizontal axis the equilibrium quantity as Q1. Assume now that the price of Breakfast Cereals has increased by 200%. (b) Would the Supply Curve for Milk increase, decrease or...
Consider a firm with supply curve given by q(p) = p^1/2 If the firm faces a...
Consider a firm with supply curve given by q(p) = p^1/2 If the firm faces a price decrease from $25 to $16, what fraction of the total reduction in producer surplus is attributed to "units leaving the market"?
Given a demand curve of P = 30 - Q and a supply curve of P...
Given a demand curve of P = 30 - Q and a supply curve of P = 0.25Q, with a tax of 25, solve for the dollar value of the tax burden on both consumers (Answer 1) and producers (Answer 2).
Assume a market where the demand curve is p = 10 - q and the supply...
Assume a market where the demand curve is p = 10 - q and the supply curve is P = Q. The government sets a price floor where the price is 3. How does price regulation affect the quantity sold
The supply of coffee is given by q= 100+p, while the demand is given by q=...
The supply of coffee is given by q= 100+p, while the demand is given by q= 120−4p. The government imposes a price-ceiling at p= 2. Find the dead-weight loss. (a) 2.5 (b) 15 (c) 2 (d) 0.5
Q#3: Externalities The Demand curve for parking lots is given by P=1000-Q.The supply of parking spots...
Q#3: Externalities The Demand curve for parking lots is given by P=1000-Q.The supply of parking spots in a city is associated with increasing external costs. While the private supply curve is given by P=Q (where P denotes price and Q quantity), the social supply curve is P=2Q. Now assume the city imposes a Pigou Tax on the supply. Calculate the remaining deadweight loss. Rounded up or down to the next closest integer. (2 pts)
Assume that the supply curve is given by p = q and the demand curve of...
Assume that the supply curve is given by p = q and the demand curve of p = 10-q. The production provides create an externality that is 2 per device. How big tax revenue is the state of one corporation tax that eliminates externality?
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT