HomeworkLib
Question

Suppose the market demand and supply curves are represented by the following equations: Qd = 100...

Suppose the market demand and supply curves are represented by the following equations:

Qd = 100 – 0.25P

Qs = 40 + 0.25P

PART A I already did:

a.   Determine the equilibrium price and quantity. (Show your calculations) [2 marks]
Price can be calculated
QD=QS
100- 0.25P = 40+ 0.25P
Rewritten as: 60 = 0.5
Price= 120

Quantity can be calculated:
QD = 100 – 0.25 (120) = 70

B) illustrate these curves on a graph, labelling these curves, intercepts and equilibrum price and quantity

How would I do this?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

If you have any doubt feel free to ask.

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose the market demand and supply curves are represented by the following equations: Qd = 100...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose the market demand and market supply curves are given by the equations: Qd= 100-P Qs=...

    Suppose the market demand and market supply curves are given by the equations: Qd= 100-P Qs= 3P a. What are the equilibrium price and equilibrium quantity in the market for this product? b. Find out consumer surplus, producer surplus, and total surplus. c. Suppose the government sets a price floor at $26 for this product. With this price floor, how much is consumer surplus? d. With this price floor of $26, how much is producer surplus? e. Find out total...

  • Assume that the market demand and supply curves for soybeans grown in Canada can be represented...

    Assume that the market demand and supply curves for soybeans grown in Canada can be represented via the following: QD = 40?0.5PS QS = 2.5+2.5PS (1) where PS is the soybean price ($/bushel) and QS is the quantity of soybeans produced (de- nominated in 100 million bushel units). (a) What is the equilibrium price, PS?, and quantity, Q?S, of soybeans? (b) Using Excel or some other spreadsheet program verify your answer to (a) graph- ically.

  • 16 . Demand and Supply curves can be represented by:     Qd = 90-2P; and Qs =...

    16 . Demand and Supply curves can be represented by:     Qd = 90-2P; and Qs = 3P.   Calculate the equilibrium price and quantity: P = $18; and Q = 54 P = $90; and Q = 45 P = $30; and Q = 54 P = $30; and Q = 30

  • 18. Demand and Supply curves can be represented by:     Qd = 90-2P; and Qs = 3P....

    18. Demand and Supply curves can be represented by:     Qd = 90-2P; and Qs = 3P. Using the same Demand and Supply curves that can be represented by:     Qd = 90-2P; and Qs = 3P. Consumer Surplus is: $1944 $342 $729 $486

  • 17. Demand and Supply curves can be represented by:     Qd = 90-2P; and Qs = 3P....

    17. Demand and Supply curves can be represented by:     Qd = 90-2P; and Qs = 3P. Using the same Demand and Supply curves that can be represented by:     Qd = 90-2P; and Qs = 3P. Producer Surplus is: $486 $243 $118 $900

  • Suppose that the demand and supply curves for ethanol in the United States are represented by...

    Suppose that the demand and supply curves for ethanol in the United States are represented by the following equations: QD = 1,600 − 320P QS = −800 + 640P where QD is the quantity demanded (in millions of gallons per month), QS is the quantity supplied, and P is the price (in dollars per gallon). In the scenario above, if the market is in equilibrium, the price of ethanol is $(blank) per gallon and the quantity of ethanol sold is...

  • A market is described by the following supply and demand curves: Qs = 3P Qd =...

    A market is described by the following supply and demand curves: Qs = 3P Qd = 400-P The equilibrium price is S and the equilibrium quantity is Suppose the government imposes a price ceiling of $80. This price ceiling is , and the market price will be supplied will be . and the quantity demanded will be . Therefore, a price calling of $60 will result in the quantity the quantity Suppose the government imposes a price floor of $80....

  • Suppose the demand equation can be represent as QD = 100 -2P and the Supply equation...

    Suppose the demand equation can be represent as QD = 100 -2P and the Supply equation can be represented as QS = -10 + P. a. Find the equilibrium price and quantity. b. At a price ceiling of $20, what is the QD and QS. What is the deadweight loss, consumer surplus and producer surplus amount?

  • The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations:

    The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations: QD = 20,000,000 - 4,000,000P QS = 7,000,000 + 2,500,000P, where QD and QS are quantity demanded and quantity supplied measured in bushels, and P = price per bushel. a. Determine consumer surplus at the equilibrium price and quantity. b. Assume that the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply. How many bushels of wheat...

  • The demand and supply curves for the market are given by: Demand: Qd = 16000 –...

    The demand and supply curves for the market are given by: Demand: Qd = 16000 – 24P Supply: Qs = 2000 + 32P A maximum price of $200 is proposed. (ii) Calculate the equilibrium quantity that would prevail without the maximum price

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT