. Demand, Supply, consumer surplus, Market Equilibrium Price floor. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum. QD = 80,000 – 20,000Px (Demand) QS = - 20,000 + 20,000Px (Supply) where Q is quantity measured in pounds of scrap aluminum and P is price in dollars. Answer the following questions: A. What is the condition for market equilibrium? B Calculate the market equilibrium price and equilibrium output? C. What is the inverse demand curve P = f (QD)? D. Compute the consumer surplus at the equilibrium price. E. What is the inverse supply curve P = f (Qs)? F. Compute the producer surplus at the equilibrium price.
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QD = 80,000 – 20,000Px (Demand)
QS = - 20,000 + 20,000Px (Supply)
where Q is quantity measured in pounds of scrap aluminum and P is price in dollars.
Answer the following questions:
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A. |
What is the condition for market equilibrium?
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B |
Calculate the market equilibrium price and equilibrium output?
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C. |
What is the inverse demand curve P = f (QD)?
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D. |
Compute the consumer surplus at the equilibrium price.
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E. |
What is the inverse supply curve P = f (Qs)?
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F. |
Compute the
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