Question

The demand and supply functions for a certain product are given
by p=150-0.5q and p=0.002q^{2}+1.5, where p is in dollars
and q is the number of items.

(a) Which is the demand function?

(b) Find the equilibrium price and quantity

(c) Find the total gains from trade at the equilibrium price.

with its demand and supply functions, suppose the price is set
artificially at $70 (which is above the equilibrium price).

(d) Find the quantity supplied and the quantity demanded at this
price.

(e) Compute the consumer surplus at this price, using the quantity demanded.

(f) Compute the producer surplus at this price, using the quantity demanded (why?).

(g) Find the total gains from trade at this price.

Answer #1

The demand for a product is given by p = d ( q ) = − 0.8 q + 150
and the supply for the same product is given by p = s ( q ) = 5.2
q. For both functions, q is the quantity and p is
the price in dollars. Suppose the price is set artificially at $70
(which is below the equilibrium price).
a) Find the quantity supplied and the quantity demanded at this
price.
b)...

1) The demand and supply functions for a certain product are
given by p = 150 − 0.5 q and p = 0.002 q^ 2 + 1.5 where p
is in dollars and q is the number of items.
a) Which is the demand function? Why do you know?
b) Find the equilibrium price and quantity.
c) Find the total gains from trade at the equilibrium price.

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)

Suppose demand for apartments in Honolulu is P=6000-0.5q and
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c. If a black...

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supply P=12+0,5Q
1.what is the equilibrium price, quantity, consumer surplus and
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1). Find the consumer and producer surpluses by using the demand
and supply functions, where p is the price (in dollars)
and x is the number of units (in millions).
Demand Function
Supply Function
p = 410 − x
p = 160 + x
consumer surplus $_________
millionsproducer surplus $ ________millions
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The demand for sunglasses is given by D(p) = 100 − 2 p and the
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(a) Compute the equilibrium price and equilibrium quantity of
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(b) Sketch both the demand and supply curves on the same graph
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