Question

The supply curve for a commodity has the equation p =
0.4x − 2.5 , and the demand curve is p = 20 − 0.05x ,
where *p* is in dollars.

**A. Find the equilibrium point.**

**B.** **Find the consumers’
surplus.**

**C.** **Find the producers’
surplus.**

Answer #1

The supply curve for a
commodity has the equation p = 0.4 x − 2.5 , and the demand curve
is p = 20 − 0.05 x , where p is in dollars.
A. Find the
equilibrium point.
B.
Find the consumers’ surplus.
C.
Find the producers’ surplus.

Suppose that the demand curve for a particular commodity is
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output. Suppose now that a unit tax of 3 dollars is
imposed on the commodity. (2) Show the new equilibrium is
the same regardless of whether the tax is imposed on producers or
buyers of the commodity. (3) Calculate the...

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.

Suppose that the demand equation: P = 6 – Q and supply equation:
P = Q.
a. Calculate the price elasticity of demand at
equilibrium.
b. Calculate the equilibrium price and quantity, and consumer
surplus and producer surplus.
c. Suppose government imposes a unit tax of $1 on producers. Derive
the new supply curve and also calculate the new equilibrium price
and quantity.
d. Calculate tax revenue and the deadweight loss of this tax.

The inverse demand curve for delivery meals is: Pd=18-3Qd the
inverse supply curve is: Ps=3Qs where p is price of meal in
dollars, Q is quantity in thousands of meals
a.) solve for equilibrium price and quantity
b.) draw the supply and demand curves and the equilibrium
outcome on axes below and label graph
c.) Calculate the consumer surplus and producer surplus in this
market, and show them on the set of axes above.
d.) suppose the government imposes a...

Assume that demand for a commodity is represented by the
equation P = 20 – 0.6 Q d, and supply by the equation P = 10 + 0.2
Qs where Qd and Q s are quantity demanded and quantity supplied,
respectively, and P is the Price. Use the equilibrium condition Qs
= Qd
1: Solve the equations to determine equilibrium price.
2: Now determine equilibrium quantity.
3. Make a Table of points and then graph the following
4. Graph Demand...

Given a demand curve of P = 63 - 1.5Q and a supply curve of P =
3 + 0.5Q, with a tax of 24, solve for the percentage loss of
surplus for both consumers (Answer 1) and producers (Answer 2). The
formula for percentage loss is, for example, (CS - CSt)/CS.

3. Solve the following problem: The supply function for x units
of a commodity is p = 30 + 100 ln ( 2 x + 1 )dollars and the
demand function is p = 700 − e^0.1x. Find both the consumer's and
producer's surpluses. Use your graphing calculator to find the
market equilibrium and compute definite integrals necessary to
compute the surpluses. Note you won't be able to do some of the
integrals otherwise. Explain your steps.
4. Sketch...

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
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1) The demand and supply for a good are respectively QD = 10 – P
and QS = 4 + P. a) Determine the equilibrium price. b) Determine
the equilibrium quantity. c) Determine consumers’ expenditures on
the good. d) Determine total consumers benefits (understanding that
the inverse demand represents the marginal benefit curve). e)
Determine the consumer surplus. f) Determine producers’ total
revenues. g) Determine the producer surplus. h) Determine the total
surplus.

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