5. At equilibrium, supply = demand.
So, 3P - 30 = -2P + 220
So, 3P + 2P = 220 + 30
So, 5P = 250
So, P = 250/5
So, P = 50
6. Q = 3P - 30 = 3*(50) - 30 = 150 - 30 = 120
So, Q = 120 million
7. New supply, Q' = (2/3)*Q = 2/3*(3P - 30) = 2P - 20
At equilibrium, new supply = demand.
So, 2P - 20 = -2P + 220
So, 2P + 2P = 220 + 20
So, 4P = 240
So, P = 240/4
So, P = 60
Q = 2P - 20 = 2*(60) - 20 = 120 - 20 = 100
Thus, Q = 100 million
8. P = 60
9. A. Shift
(As the supply has decreased, so there is a leftward shift of the
supply curve.)
10. B. Movement along
(A shift in supply causes a movement along the demand curve.)
(Note: Post 4 subparts at a time.)
Questions 5-15 The demand and supply schedules for chewing gum are as follows: Supply: Q =...
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Suppose that the demand curve for wheat is Q 120-10p and the supply curve is Q-10p The government imposes a price ceiling of p $4 per unit. a. How do the equilibrium price and quantity change? (round quantities to the nearest integer and round prices to the nearest penny) The equilibrium quantity without the price ceiling is and the price without the price ceiling is S The equilibrium quantity with the price ceiling is b. What effect does this ceiling...
Suppose that the demand curve for wheat is Q 120-10p and the supply curve is Q-10p The government imposes a price ceiling of p $4 per unit. a. How do the equilibrium price and quantity change? (round quantities to the nearest integer and round prices to the nearest penny) The equilibrium quantity without the price ceiling is and the price without the price ceiling is S The equilibrium quantity with the price ceiling is b. What effect does this ceiling...
Suppose that the demand curve for wheat is Q 120-10p and the supply curve is Q-10p The government imposes a price ceiling of p $4 per unit. a. How do the equilibrium price and quantity change? (round quantities to the nearest integer and round prices to the nearest penny) The equilibrium quantity without the price ceiling is and the price without the price ceiling is S The equilibrium quantity with the price ceiling is b. What effect does this ceiling...
Suppose that the demand curve for wheat is Q=120 - 10p and the supply curve is Q=10p The government imposes a price ceiling of p= $4 per unit per unit. a. How do the equilibrium price and quantity change? (round quantities to the nearest integer and round prices to the nearest penny) The equilibrium quantity without the price ceiling is 60 and the price without the price ceiling is $6. The equilibrium quantity with the price ceiling is 40. B)...
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