2. Below is a tabular data of price and quantity demand and quantity supply for banana que. 10 40 20 25 10 50 50 10 15 30 30 20 20 Qd Qs 40 Using the appropriate method for the given data set, derive the following a) demand and supply equation in terms of Q-f(P) b) equilibrium price and equilibrium quantity using the appropriate method c) compute for the consumer's surplus then graph d) compute for the producer's surplus then graph

2. Below is a tabular data of price and quantity demand and quantity supply for banana que. 10 40 20 25 10 50 50 10 15 30 30 20 20 Qd Qs 40 Using the appropriate method for the given data set, derive the following a) demand and supply equation in terms of Q-f(P) b) equilibrium price and equilibrium quantity using the appropriate method c) compute for the consumer's surplus then graph d) compute for the producer's surplus then graph

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

See similar textbooks

Similar questions

What is total surplus? How is it illustrated on a demand and supply diagram?
What is consumer surplus? How is it illustrated on a demand and supply diagram?
What is producer surplus? How is it illustrated on a demand and supply diagram?
Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands. What is the quantity demanded and the quantity supplied at a price of 210? At what price is the quantity supplied equal to 48,000? Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from line table? What HIE die equilibrium price and equilibrium quantity? If the price was 120, what would the quantities demanded and supplied he? Would a shortage or surplus exist? If so, how large would the shortage or surplus he?
Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose from $95 to $105, what would be the elasticity of supply if the quantity supplied changed from a. 38 to 42? b. 78 to 82? c. 54 to 66?
What is the relationship between total surplus and economic efficiency?
Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?
The supply and demand for concert tickets are given in the table below.Price (R)0481216202428323640Quantity Demanded15141312111098765Quantity Supplied0000013579114.1.1. Plot the supply and demand curves to scale and establish the equilibrium price and quantity. 4.1.2. What is the excess supply or demand (as applicable) when price is R24? And when price is R36? 4.1.3. Describe the market adjustments in price induced by these two prices. 4.1.4. The functions underlying the example in the table are linear and can be presented as P = 18+2Q (supply) and P = 60−4Q (demand). Solve the two equations for the equilibrium price and quantity values. 4.2. Briefly explain how each of the following affects the demand for goods and services in a market place and highlight the effects on price and the equilibrium position.4.2.1. Price of the product or service 4.2.2. Price of related goods; 4.2.3. Income of consumers; 4.2.4. Number of consumers;
Given below are the Demand and Supply functions for consumers and suppliers. Supply function: Qs=P Demand function: Qd=60-4p Graph the equations (make sure to label the graphs appropriately and clearly) (2) Find the equilibrium price and quantity (1) Calculate the Consumer and Producer surplus for consumers and producers (1) Explain what would happen if the government imposed a price ceiling of 10 dollars (Calculate the shortage or surplus in the quantity demanded). Then discuss how the total surplus would change, I don’t want you to calculate the surplus, just discuss how it might change.
Demand for cookies is of the following form: P=20-4QD, where QD is millions of cookies demanded per year and P is price in US dollars. Supply of cookies of the following form: P=6+Qs, where QS is millions of cookies supplied per year and P is price in US dollars. a. What is the equilibrium quantity of cookies traded? Solve the equation, showing your work. b. Graph the supply and demand curves, marking their intersection. Be sure to label intercepts, equilibrium, etc. c. The government imposes a tax of $2 per cookie on producers of cookies. What is the new equilibrium quantity of cookies traded? Solve the equation, showing your work. d. In a graph, show how the supply curve has shifted. What price do consumers now pay? After paying the tax, how much to producers receive.
Suppose you are given the following supply and demand equations for your company's product, executive fountain pens: Qd = 12,000 - 2P + 3Py - 5Pn - 2Pk + 4M + 3A Qs = 8,000 + 4,000P - 7Pm - 3Pw where: Qd = quantity demanded of fountain pens Qs = quantity supplied of fountain pens P = price per unit of fountain pens Py = price per unit of pencils Pn = price per unit of notebooks Pk = price per bottle of ink M = consumer income A = number of units of advertising purchased by the company Pm = cost of purchasing materials (inputs) for fountain pens Pw = cost of hiring a worker (wage rate) a) given the signs of the coefficients in the demand equation, how does the demand for fountain pens react to each variable (i.e., substitutes, complements, normal good, inferior good)? b) given the signs of the coefficients in the supply equation, how does the supply for fountain pens react to each variable? c) suppose you are given the following data: Py = $10 Pn = $15 Pk = $8 M = $20,000 A =…
1. Suppose that the smartphone market has the demand equation of P= 1,200 - 3.5Qd and the supply equation of P= 450 + 2.5Qs.a. Find the equilibrium price and equilibrium quantity for this market? b. Draw a graph to show this market and compute for consumer surplus, producer surplus, and market surplus. 2. The right-hand side graph shows the hot dog market. Based on the graph : a. what is price elasticity to demand a hot dog from the price of $4 to $1? b.What is the price elasticity of supply for a hot dogs from the price of $1.5 to 4$?