Question

p = a – bq p = c + dq Assume that a > c >...

p = a – bq

p = c + dq

Assume that a > c > 0 and that d > 0, b > 0. Solve for the values of p and q (in terms of the parameters a, b, c, d) that represent the intersection of these two lines. Graph your solution with p on the vertical axis and q on the horizontal axis. Note that a, b, c, d are simply positive constants.

Homework Answers

Answer #1

The given equations are

Multiplying first equation by (d) and second equation by (b) and adding them we get

gives the point of intersection of the two lines.

The graph of the two lines is shown in figure below.

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
2.)       For a price-searcher, assume the demand curve is Q = 20 - P. a.)       ...
2.)       For a price-searcher, assume the demand curve is Q = 20 - P. a.)        Construct a four-column table of P and Q with P ranging from 20 to 0. Calculate TR and MR and add them to your table. b.)       Graph D and MR. (Plot points—with $ on the vertical axis and Q on the horizontal axis.) c.)        Why is P > MR (after the first unit) 3.)       Using the same price-searcher, assume the firm faces the...
Assume that demand for a commodity is represented by the equation P = 10 - 0.2Q...
Assume that demand for a commodity is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q. Find equilibrium price and quantity (algebraically). Then graph the supply and demand lines, plot equilibrium point and label axes, equilibrium P* and Q*, vertical and horizontal intercepts for demand curve, and vertical intercept for the supply curve.
Consider the function f(x) = √x and the point P(4,2) on the graph f. a)Graph f...
Consider the function f(x) = √x and the point P(4,2) on the graph f. a)Graph f and the secant lines passing through the point P(4, 2) and Q(x, f(x)) for x-values of 3, 5, and 8. b) Find the slope of each secant line. (Round your answers to three decimal places.) (line passing through Q(3, f(x))) (line passing through Q(5, f(x))) (line passing through Q(8, f(x))) c)Use the results of part (b) to estimate the slope of the tangent line...
Suppose a monopolist faces market demand (Dm) of P(q) = a - bq and whose cost...
Suppose a monopolist faces market demand (Dm) of P(q) = a - bq and whose cost is C(q) = cq where c is a positive constant. a. What the marginal revenue of the monopolist? b. What is the monopoly price? c. What is the monopolist's output at the price found in part (b)? d. What would be the market clearing price and quantity under perfect competition
The following data represent the number of games played in each series of an annual tournament...
The following data represent the number of games played in each series of an annual tournament from 1924 to 2002. Complete parts​ (a) through​ (d) below. x​ (games played) 4 5 6 7 Frequency 19 17 20 22 ​(a) Construct a discrete probability distribution for the random variable x. x​ (games played) ​P(x) 4 nothing 5 nothing 6 nothing 7 nothing ​(Round to four decimal places as​ needed.) ​(b) Graph the discrete probability distribution. Choose the correct graph below. A....
Suppose the supply curve for paper clips is given as P = -10 + 2Q. Which...
Suppose the supply curve for paper clips is given as P = -10 + 2Q. Which one of the statements below is true? a)The graph of supply is horizontal form Q=0 to Q=5 units. b)The graph of supply is horizontal from Q=0 to Q=10 units. c)There will be nothing supplied unless the market price is at least $5. d)This supply curve violates the law of supply. e)The graph of supply is vertical from a price of $0 to a price...
The following data represent the number of games played in each series of an annual tournament...
The following data represent the number of games played in each series of an annual tournament from 19331933 to 20022002. Complete parts? (a) through? (d) below. x? (games played) 4 5 6 7 Copy to Clipboard + Open in Excel + Frequency 1717 1515 2121 1616 ?(a) Construct a discrete probability distribution for the random variable x. x? (games played) ?P(x) 4 nothing 5 nothing 6 nothing 7 nothing ?(Round to four decimal places as? needed.) ?(b) Graph the discrete...
Consider a market with demand given by P = a−bQ, where a,b > 0. Suppose the...
Consider a market with demand given by P = a−bQ, where a,b > 0. Suppose the only supplier in the market has costs given by C(Q) = mQ+F, where fixed cost is F > 0 and sunk and m is positive but small enough that the firm does not shut down. (1) Find the monopolist’s profit-maximizing price and quantity and the monopolist’s profits. (2) Show that the profit-maximizing monopolist produces on the elastic portion of its demand curve (in the...
QUESTION 30 Figure 16-2. The figure is drawn for a monopolistically competitive firm. ​ A graph...
QUESTION 30 Figure 16-2. The figure is drawn for a monopolistically competitive firm. ​ A graph of Price, P, versus Quantity, Q, shows a straight line, M R, decreasing linearly, a second straight line, Demand, decreasing linearly above M R at a slower rate, and a third straight line, M C, increasing linearly. 4 horizontal lines extend from points on P, as follows, from lowest to highest price. P = 16, P = 24, P = 32, and P =...
Let AE = C +I +G+NX where AE is the aggregate expenditure, C is the consumption...
Let AE = C +I +G+NX where AE is the aggregate expenditure, C is the consumption function, I is investment, G is government expenditure and NX is the net export. Given C = 100+0.65Y where Y is the national income and I = 100, G = 100+0.10Y, NX = 0 (a) Graph the consumption function with Y on the horizontal axis and C on the vertical axis. (b) Graph the aggregate expenditure function with Y on the horizontal axis and...