Question

Qd = 500 - 2 P Qs = -12+ 4p a. Calcite the Price and Quantity...

Qd = 500 - 2 P

Qs = -12+ 4p
a. Calcite the Price and Quantity Equilibrium

b. Plot the Graph

c. Discuss the final result.

d. What happens if there is an increase in the equilibrium quantity supplied? How does this impact the equation?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a.

To calculate equilibrium price and quantity we need to equate, Qd=QS
500-2P=-12+4P
512 = 6P
P = 85.33
Q = 500-2*85.33 = 329.32

b.

c. From the above graph we can understand that quantity demand is inversely related to price and quantity supplied is positively related to price
The market reaches the equilibrium at P=85.33 and Q = 329.32

d. With the increase in equilibrium quantity supplied the price decreases as the supplier qould be ready to supply more quantity for a price

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
1. The market demand and supply was given as follow: Qd = 10 – 2P Qs...
1. The market demand and supply was given as follow: Qd = 10 – 2P Qs = -5 + 3P a) Compute for the Price equilibrium b) Compute for the Quantity equilibrium c) Plot/graph the following equation. 2. Given the equation, find the equilibrium price and quantity of the following market and plot the equation. 13P – Qs = 27 Qd + 4P – 24 = 0
Qd = 240 - 5P Qs = P (a) Where Qd is the quantity demanded, Qs...
Qd = 240 - 5P Qs = P (a) Where Qd is the quantity demanded, Qs is the quantity supplied and P is the Price. Find: (1) the Equilibrium Price before the tax (2) the Equilibrium quantity before the tax (3) buyers reservation price (4) sellers reservation price (5) consumer's surplus before tax (6) producer's surplus before tax (b) Suppose that the government decides to impose a tax of $12 per unit on seller's in the market. Determine: (1) Demand...
Suppose the market for ice cream is characterized by the following: QD=80-4P QS=-10+P A) Do QD...
Suppose the market for ice cream is characterized by the following: QD=80-4P QS=-10+P A) Do QD and QS obey the laws of demand and supply respectively? How do you know? (5 marks) B) Solve for the equilibrium price and quantity for ice cream. C) Rather unexpectedly, a portion of the world’s dairy cows have started to produce sour milk, which causes the price of milk to increase. Explain how this would affect (ie. shift or cause movement along) the supply...
Suppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P. Assume...
Suppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P. Assume this market is perfectly competitive. d. Suppose the Council puts a tax of $5 per unit on the purchase of pickles. Write an equation showing the relationship between the price paid by consumers and the price received by producers. e. Find the new (after-tax) equilibrium quantity of pickles, price paid by consumers, and price received by producers. f. How much consumer surplus is created...
The demand for a product is Qd=320-8p-2px and supply is Qs=20+4p, where Q is the quantity...
The demand for a product is Qd=320-8p-2px and supply is Qs=20+4p, where Q is the quantity for the product, in thousands of units, P is the price of the product, and Px is the price of the another good X 1) When Px =$30, what is the equilibrium price and quantity sold for the product? 2) At the equilibrium price and quantity, what is the price elasticity of demand for the product?
1. Suppose the demand for village defense in Temeria is Qd=300-2P, and the supply is Qs=4P....
1. Suppose the demand for village defense in Temeria is Qd=300-2P, and the supply is Qs=4P. a. Graph the supply and demand curves. (3 points) b. Solve for the equilibrium price and quantity. Show this point on your graph from part (a). (5 points) c. How much consumer surplus is created in this market? How much producer surplus? (4 points) d. Suppose the King of Temeria puts a tax of 10 orens per unit on village defense. Write an equation...
Qd = 15,000 -500P Qs = -8000 +300P Solve for equilibrium price and quantity. (At equilibrium...
Qd = 15,000 -500P Qs = -8000 +300P Solve for equilibrium price and quantity. (At equilibrium unity supplied equals quantity demanded) Note: When I solve this and put the "price equilibrium" price back in each equation, my final number is off by 5. I should be able to put the Pe answer back into either equations and get the same answer. What am I doing wrong?   
Consider the following market for board games: (Do NOT round values) Qs= -20+4P Qd= 300-P a)...
Consider the following market for board games: (Do NOT round values) Qs= -20+4P Qd= 300-P a) Calculate initial equilibrium supply and demand. b) Calculate consumer and producer surplus. Show graphically. c) Since board games make the world a better place, the government puts a $30 subsidy on all board games. Recalculate new equilibrium prices and quantity. d) Show (c) in a graph and calculate consumer surplus, producer surplus, government cost and deadweight loss. Show these in the graph.
Consider the following market for board games: (Do NOT round values) Qs= -20+4P Qd= 300-P a)...
Consider the following market for board games: (Do NOT round values) Qs= -20+4P Qd= 300-P a) Calculate initial equilibrium supply and demand. b) Calculate consumer and producer surplus. Show graphically. c) Since board games make the world a better place, the government puts a $30 subsidy on all board games. Recalculate new equilibrium prices and quantity. d) Show (c) in a graph and calculate consumer surplus, producer surplus, government cost and deadweight loss. Show these in the graph.
Assume a demand function is given by Qd=40-2P+4Ps-2Pc+5Y and a supply function is given by Qs=16+4P-6Pi,...
Assume a demand function is given by Qd=40-2P+4Ps-2Pc+5Y and a supply function is given by Qs=16+4P-6Pi, where Ps, Pc, and Pi are the price of a substitute, complement, and input to production respectively. How does a $1 increase in the price of a substitute change the equilibrium price and the equilibrium quantity?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT