Question

For a quantity x of a certain product the demand function d(x) and the supply function s(x) are given by the formulas: d(x) = 720 − 0.06x^2, s(x) = 0.012x^2.

Sketch the graphs of these functions on the same graph and find the market demand, the positive quantity x at which the two curves meet (supply equals demand).

For this value of x also compute the producer surplus and the consumer surplus and indicate on your graph which areas these correspond to.

Answer #1

Suppose that the demand and supply functions for good X
are:
Qd = 298 - 8P and
Qs = - 32 + 4p
A. Find the equilibrium price and quantity.
B. Sketch this market. [HINT: Be sure to draw the two curves
carefully, using inverse demand and supply functions to calculate
the quantity- and price-axes intercept points.]
C. Use the demand function to calculate consumer surplus.
D. Use the supply function to calculate producer surplus.
E. What is the total...

The demand for sunglasses is given by D(p) = 100 − 2 p and the
supply curve is given by S(p) =3p
(a) Compute the equilibrium price and equilibrium quantity of
sunglasses.
(b) Sketch both the demand and supply curves on the same graph
(be sure to label your axes correctly).
(c) Determine the value of consumer surplus and producer surplus
at the equilibrium values. Suppose all sunglasses are imported from
China. Suppose also that the government imposes an import...

The demand and supply functions for a certain product are given
by p=150-0.5q and p=0.002q2+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...

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)

The market for a product has inverse demand and supply
functions given by p = 290 - 2Qd and p = 10 + 1.5Qs
In what form are these functions in? (2pts)
Find the market equilibrium quantity Q* and price P*.
(5pts)
Draw out a simple graph with these curves. Label the
p-intercept for each and indicate the equilibrium points.
(5pts)
Find the consumer and producer surpluses, along with the
total surplus.(10pts)
(i) Would this market be considered efficient?
(2pts)

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...

Consider the market for butter in
Saudi Arabia. The demand and supply relations are given as
follows:
Demand:
QD = 12 - 2P
Supply:
Qs = 3P - 3.
P is the price of butter.
Calculate:
Equilibrium price _____________
2. Equilibrium quantity _____________
Consumer surplus
___________
4. Producer surplus ___________
Draw the demand and supply graphs. Show the equilibrium price
and quantity, consumer surplus and producer surplus in the graph
below. Graphs must be on scale.
Suppose government imposes...

Assume the demand function is D(x)= -0.6x2+160 and
the supply function is S(x)= 0.4x2 +x+50 find the
consumer surplus
A) 100
200
300
400
500
600
700
None

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). 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
2) 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...

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