Question

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%)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following demand and supply equations in the market for labour. Supply: W = 10...
Consider the following demand and supply equations in the market for labour. Supply: W = 10 + (1/3)L Demand: W = 1, 000 − (2/3)L Show your work as you respond to the following questions. (a) What is the market equilibrium wage and quantity? (b) The government implements a minimum wage of W = 370. What is the Consumer Surplus? (c) Calculate the Producer Surplus under a minimum wage of W = 370. (d) Find the Deadweight Loss under a...
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, Find the equilibrium price and equilibrium quantity for each set of equations. Draw each set of equations in a clearly labeled graph and show the equilibrium P and Q. Calculate the producer surplus at the equilibrium P and Q found in b. If the price were to increase, calculate the total new producer surplus. Calculate the gain in the producer surplus If the price were to decrease, calculate...
Consider the following supply and demand equations:Supply:p= 550 + 3q Demand:p= 750−2q Show your work as...
Consider the following supply and demand equations:Supply:p= 550 + 3q Demand:p= 750−2q Show your work as you respond to the following questions.(a) What is the market equilibrium?(5%)(b) What is the Total Surplus at equilibrium?(5%)(d) The government imposes a price ceiling of 700. What is Total Surplus? What isthe Deadweight Loss?(10%)(e) Instead, the government imposes a price ceiling of 650. What is Total Surplus?What is the Deadweight Loss?(10%)
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, Find the equilibrium price and equilibrium quantity for each set of equations. Draw each set of equations in a clearly labeled graph and show the equilibrium P and Q. Calculate the consumer surplus at the equilibrium P and Q found in b. If the price were to increase, calculate the loss in the consumer surplus. Calculate the total new consumer surplus. If the price were to decrease, calculate...
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?
Consider the market for hiking boots. This market can be represented by the following supply and...
Consider the market for hiking boots. This market can be represented by the following supply and demand equations: Q=100–2P (demand) and Q= –20 +P (supply) a. Graph the supply and demand curves, labeling the axes clearly. Calculate the equilibrium price and quantity in this market (Q represents a pair of boots), and label these points on the graph. b. Calculate consumer surplus, producer surplus, and net benefits in the market for hiking boots.
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 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. Consider the following demand and supply functions for a good or service: Qd = 400...
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...