If the supply curve is given by the equation P 10 + 4Q, and the demand...

Question

Question

If the supply curve is given by the equation P 10 + 4Q, and the demand curve is given by the equation P 185-10Q, then a price

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

1. D. $43.75

Reason-

Supply= P=10+4Q

Demand =P=185-10Q

Equilibrium Price and Quantity=

10+4Q=185-10Q

14Q=175

Q*=12.5

P*= $60

Price Ceiling= $50

Supply at $50, 50=10+4Q

Q=10

Price paid by consumers at Q=10

P=185-10(10)

P=$85

Deadweight loss= 0.5*(85-50)*(12.5-10)=$43.75

2. D. 4.2

Reason-

Demand curve= P=254-30Q

Total revenue= P*Q= (254-30Q)*Q= 254Q-30Q^2

To find the quantity where total revenue will be maximized, differentiate TR and equate it to zero.

dTR/dQ= 254-60Q=0

Q=4.2

3.A. $366.94, 11.898

Reason-

Demand curve= P=593-19Q

TR= P*Q= 593Q-19Q^2

MR= dTR/dQ= 593-38Q

MC=10+11Q

Monopoly produces where MC= MR

593-38Q=10+11Q

583=49Q

Q*=11.898

Plug the quantity in inverse demand equation

P*=593-19(11.898)= $366.94

If it helps kindly upvote.

Add a comment

Answer 2

Similar Homework Help Questions

If the supply curve is given by the equation P = 10 + 4Q, and the...

If the supply curve is given by the equation P = 10 + 4Q, and the demand curve is given by the equation P = 185 - 10Q, then a price-ceiling set at Pmax = $50 will result in a dead-weight loss for consumers of _____. A. $22.50 B. $12.50 C. $20.80 D. $18.75
The supply curve in a market is given by P = 9+1.27(Q), while the demand curve...

The supply curve in a market is given by P = 9+1.27(Q), while the demand curve is P = 60 - 1.5(Q). 60 ESH 10 10 20 30 40 The equilibrium price and quantity will be PE- OA. $36.51; 28.52 B. $45.22:21.7 OC. $32.38; 18.41 OD. $45.22; 28.52 E. $32.38; 21.7
ec 16 STATISTICS BOOK MAT 2 Micro 31. If the supply curve is given by the...

ec 16 STATISTICS BOOK MAT 2 Micro 31. If the supply curve is given by the equation P- 10+ 40, and the demand curve is given by the equation P = 185-100, then a price ceiling set at Pmax-$50will result in a dead-weight loss of D:59:rr.oo 3:P-10叫(rs.り P.pdQ A) $45.00 B) $20.50 C) $43.75 D) $40.25 The equation for the demand curve is P--685-(2)Q. When Q goes from| 36 to 137, then the price must go from A) 413; 411...

The supply curve for T-shirts is given by the equation P = 4Q+2. The demand curve...

The supply curve for T-shirts is given by the equation P = 4Q+2. The demand curve is given by the equation P = 20-5Q. Suppose that the government imposes a sales tax of $9 per T-shirt. What is the equilibrium price for the buyer? And what is the equilibrium price for the seller?
Given a downward sloping demand curve and an upward sloping supply curve for product X, an...

Given a downward sloping demand curve and an upward sloping supply curve for product X, an increase in the price of a substitute good (in consumption) will: a.) increase equilibrium price and quantity of X b.) decrease equilibrium price and quantity of X c.) increase equilibrium price and decrease equilibrium quantity of X d.) decrease equilibrium price and increase equilibrium quantity of X
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer...

QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...

Suppose the demand equation for a commodity is given by p? +169 -1400 and the supply...

Suppose the demand equation for a commodity is given by p? +169 -1400 and the supply function is given by the equation p = 10q+900 Determine the equilibrium price and quantity. Round your answers to two decimal places. Graph both functions below and clearly label. 1 Price 30+ 25+ 20+ 15+ 10+ $-+ Quantity 10 15 20 25 30 10 SPR/2017
If the supply curve is given by the equation P = 10 + 4Q, and the...

If the supply curve is given by the equation P = 10 + 4Q, and the competitive market equilibrium price is $60, then a price-ceiling set at Pmax = $50 will result in a reduction in the producer surplus by _____. A. $98.50 B. $120.00 C. $112.50 D. $100
The demand curve for a product is given by the equation Qa 60 4 P And...

The demand curve for a product is given by the equation Qa 60 4 P And the supply curve for the product is given by the equation Qs = 3 P - 10. (P is measured in S) The absolute value of price-elasticity of demand at the market equilibrium price and quantity is (a) 0.15 (b) 0.75 (d) 2.0

1. Demand curve: P = $100 – 2Q Supply curve: P = $10 + 4Q If...

1. Demand curve: P = $100 – 2Q Supply curve: P = $10 + 4Q If a tax of $30 per unit is imposed in this market, the dollar price paid by buyers will be: (show the math) a. 10 b. 20 c. 40 d. 60 e. 80

If the supply curve is given by the equation P 10 + 4Q, and the demand...

Homework Answers

Add Answer to:
If the supply curve is given by the equation P 10 + 4Q, and the demand...

Post as a guest

Earn Coins