Question

A competitive market is described by the nonlinear demand schedule p = 1,946 − q2 and...

A competitive market is described by the nonlinear demand schedule p = 1,946 − q2 and the supply schedule p = 2 + 5q2. Find the following:

a. equilibrium quantity and price;

b. consumer surplus using integration

c. producer surplus using integration

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
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...
The demand curve of a perfectly competitive product is described by the equation:     P =...
The demand curve of a perfectly competitive product is described by the equation:     P = $1000 – Q    where Q = thousands The supply curve is given by     P = $100 + 2Q     where Q = thousands Graph the demand and supply curves; use a grid size of 100. Calculate the equilibrium price and quantity (carefully state the units).  Find the consumer surplus CS, the producer surplus PS, and the deadweight loss DWL, carefully stating the units.
Competitive Markets Consider a village’s competitive market for rice. The daily market demand for rice (in...
Competitive Markets Consider a village’s competitive market for rice. The daily market demand for rice (in bushels per day) is given by the equation: P = 18 – 2Q The market supply of rice is given by the equation: P = 3 + Q These equations are plotted below (with some labels missing that you will be asked to fill in): Given this information, answer the following: (20 pts.) Using the equations for demand and supply given in the instructions...
Suppose the market for bottled water is competitive and is characterized by the following demand and...
Suppose the market for bottled water is competitive and is characterized by the following demand and supply conditions. The inverse demand and supply curves are depicted below. Demand: QD = 400 – 100 P Supply:    QS = 280 + 20 P (for P > 0) Price: Quantity: Consumer surplus: Producer surplus: Suppose in anticipation of an approaching hurricane, demand rises to QD = 800 – 100 P. What will happen in the market, including welfare effects, as measured by consumer...
Assume that the manufacturing of barbie doll is a perfectlycompetitive industry. The market demand for...
Assume that the manufacturing of barbie doll is a perfectly competitive industry. The market demand for barbie doll is described by a linear demand              function :Qd = 6000 – 50P   ; P = price of a barbie doll.                              9                               There are fifty manufacturers of barbie dolls. Each manufacturer has the same             production costs given as TC(q) = 100 +q2 + 10q ; q = quantity of barbie doll.     Show that a firm in this industry maximizes profit by producingq = (P -10)...
Suppose that the market for milk is initially perfectly competitive. a) Draw a supply and demand...
Suppose that the market for milk is initially perfectly competitive. a) Draw a supply and demand diagram showing the equilibrium quantity of milk produced and the market price. Be sure to label all part of your diagram. b) On your diagram from Part (a), label the consumer and producer surplus. c) Suppose that the government permits an industry association to form which issues production quotas to each dairy farmer. If the sum of the quotas are less than competitive market...
Assume that the market for milk is initially perfectly competitive. 1. Draw a supply and demand...
Assume that the market for milk is initially perfectly competitive. 1. Draw a supply and demand diagram showing the equilibrium quantity of milk produced and the market price. Be sure to label all part of your diagram. 2. On your diagram from Part (a), label the consumer and producer surplus. 3. Suppose that the government permits an industry association to form which issues production quotas to each dairy farmer. If the sum of the quotas are less than competitive market...
Consider a perfectly competitive market with demand Q=1,000-4P. The marginal cost for each firm in the...
Consider a perfectly competitive market with demand Q=1,000-4P. The marginal cost for each firm in the market is constant at MC=4. Determine the competitive equilibrium price and quantity. . Graph demand, supply, and the equilibrium found in part A). Determine consumer surplus, producer surplus, and total surplus. Is consumer surplus or producer surplus equal to zero? Why or why not? Is this question representative of a long or short-run perfectly competitive market? How do you know?
2. A market for agriculture produce can be described by two linear equations. Demand is given...
2. A market for agriculture produce can be described by two linear equations. Demand is given by P = 170− (1/6)Q, and supply is given by P = 50+(1/3)Q, where Q is the quantity and P is the price. a) Graph the functions and find the equilibrium price and quantity. b) Now the government implements a supporting price of $140. Calculate the surplus (excess supply), the consumer surplus and producer surplus. c) Suppose the government instead chose to maintain a...
Below you will find a supply and demand schedule for avocados. Assume that the market is...
Below you will find a supply and demand schedule for avocados. Assume that the market is otherwise competitive and in equilibrium. Then let the government institute a price floor at $7. You are to illustrate this outcome; title your graph and draw supply and demand , denote the efficient price and quantity, and exhibit the price floor . Be sure to label deadweight loss , consumer surplus, producer surplus , and any surplus or shortage that results . Calculate the...