Assume that there are only two goods in the economy: goods 1 and 2. Further, assume that the markets are perfectly competitive. Let Qpi be the quantity demanded for good i, Qst the quantity supplied for good i, and p the market price for good i, for i = 1,2. Solve for the equilibrium prices and quantities for each good in the following cases. Show that the Walras' Law is satisfied in each case. a. Qp1 = 200 – Pı; Qs1 =P1 - Qp2 = 30 -P2; Qs2 = P2 - 10 %3D b. Qpi = 30 -P1 -P2; Qs1 = 2p1- 5 Qp2 = 23 +P1 -P2; Qsz =P2 - 3 %3D
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- Consider the market for automobiles, and draw representative supply and demand curves.a) Suppose that the price of gasoline rises, and at the same time, the price of steel (an input to automobile production) falls. Show this on your graph. If you have no other information, what can you say about the change in equilibrium price and quantity?b) Now suppose that you have the additional information that the rise in gasoline prices has been relatively large, while the reduction in steel costs has been relatively small. How would this change your answer to (a)? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.No written by hand solution Suppose that Sam and Teresa are the only consumers of dance classes in a particular market. The following table shows their annual demand schedules: Price Sam's Quantity Demanded Teresa's Quantity Demanded (Dollars per class) (Classes) (Classes) 10 32 56 20 20 40 30 12 24 40 4 12 50 0 4 On the following graph, plot Sam's demand for dance classes using the green points (triangle symbol). Next, plot Teresa's demand for dance classes using the purple points (diamond symbol). Finally, plot the market demand forHome has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150. Graph the relative demand curve along with the relative supply curve of banana. (Q_A^D)/(Q_B^D )=1/2*p_b/p_a ↔1/( (Q_B^D)/(Q_A^D ))=1/2*p_b/p_a Assume: Demand for apples/ demand for bananas =half of price of bananas/ price of apples What is the equilibrium relative price of banana?
- Supply and Demand Changes (be sure to label the axis on all of your graphs)a)b)c) d)e)f) g)• • • •Suppose that you do a national survey of Americans, asking them how they feel about American- made cars versus Japanese-made cars. Suppose as well that you discover that Americans’ “taste” for American-made cars has decreased and the taste for Japanese- made cars has increased. Using the demand and supply model, show how this change in taste for American-made cars will impact the market for American-made cars. Give your predictions for the change in the equilibrium price and the equilibrium quantity of American-made cars bought and sold.Suppose that you have information indicating that the price of steel (an important input of production in the auto industry) has doubled during the past few months. Show how this economic shock will influence the market for American made cars and give your predictions for equilibrium price and sales change.Suppose both (a and b above) of these shocks are…This problem involves solving demand and supply equations together to determine price and quantity. a. Consider a demand curve of the form QD=-2P+20, where QD is the quantity demanded of a good and P is the price of the good. Graph this demand curve. Also draw a graph of the supply curve Qs =2P-4, where Qs is the quantity supplied. Be sure to put P on the vertical axis and Q on the horizontal axis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c. At what values of P and Q do these curves intersect-that is, where does QD = Qs ? b. Now, suppose at each price that individuals demand four more units of output-that the demand curve shifts to QD - 2P+24. Graph this new demand curve. At what values of P and Q does the new demand curve intersect the old supply curve-that is, where does QD = Qs ? c. Now finally, suppose the supply curve shifts to Q's=2P-8. Graph this new supply curve. At what values of P and Q does QD=Q's? Show all working calculations and label garph with…a)Consider a demand curve of the form Qd = 20-2p where Qd is the quantity demanded of a good and p is the price of the good. Also consider a supply curve of the form Qs = 2p-4 where Qs is the quantity supplied. Graph these curves. At what values of P and Q do these curves intersect? b) Now suppose at each price individuals demand four more units of output, that is the demand curve shifts to Qd = 24-2p. Graph this new curves. Graph this new curve on the diagram drawn in part a) At what values of P and Q does the new demand curve intersect the supply curve identified in part a)
- 3. Individual and market demand Suppose that Jacques and Kyoko are the only consumers of pizza slices in a particular market. The following table shows their annual demand schedules: Price Jacques’s Quantity Demanded Kyoko’s Quantity Demanded (Dollars per slice) (Slices) (Slices) 1 40 80 2 25 60 3 15 40 4 5 30 5 0 20 On the following graph, plot Jacques’s demand for pizza slices using the green points (triangle symbol). Next, plot Kyoko’s demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right.usiness EconomicsQ&A Library) If the price of good X increases from RM3 to RM5, the quantity demanded drops from 10 to 12. Find the slope of the demand curve. a) 0.2 b) 5 c) -1 d) -2 Other: 8) Based on Question 7, calculate the quantity when the price is equal to 0 a) 13 b) 2 c) 10 d) 5 9) Based on Question 7, if the market price is equal to 1, determine how many units of good X will be sold in the market. a) cannot be determined b) 12 c) 10 d) 14 Oh no! Our expert couldn't answer your question. Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience. Here's what the expert had to say: (7) - wrong data. "quantity demanded drops from 10 to 12" is wrong since value from 10 to 12 is an increase, not a drop. Ask Your Question Again 6 of 10 questions left until 1/15/21 Question I. If the price of good X increases from RM3 to RM5, the quantity demanded drops from 10 to 12. Find the slope of the demand curve. a) 0.2 b) 5 c)…3. Individual and market demand Suppose that Manuel and Poornima are the only consumers of pizza slices in a particular market. The following table shows their annual demand schedules: Price Manuel’s Quantity Demanded Poornima’s Quantity Demanded (Dollars per slice) (Slices) (Slices) 1 30 80 2 15 60 3 10 40 4 5 30 5 0 20 On the following graph, plot Manuel’s demand for pizza slices using the green points (triangle symbol). Next, plot Poornima’s demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. Manuel’s DemandPoornima’s DemandMarket Demand020406080100120654321
- I am a bit stuck on PARTS D and E. May you please try and Solve D and E! Assume Home and Foreign countries both produce the same good. a. Home’s demand curve is D = 1250-50P, where D is quantity demanded and P is the competitive price. Home’s competitive supply curve is given by MC = 4 + S/100, where S is quantity-supplied. Assuming P = MC and D=S, solve for Home’s equilibrium price and quantity. b. Solve P when S=0 and when D=0 in order to find the vertical intercepts, and draw the supply and demand diagram. Solve for both consumer surplus and producer surplus. c. Foreign’s demand curve is also D* = 1250-50P*, but Foreign’s supply curve is given by MC* = 1 + S*/100. Assuming P* = MC* and D*=S*, solve for Foreign’s equilibrium price and quantity. Draw the supply and demand diagram for Foreign, and solve for Foreign’s consumer surplus andproducer surplus. d. Now find the free trade equilibrium, assuming no transportation costs or tariffs, by setting P = P* and D+D* = S+S*. Solve…This is a reflection type of question, I really need an expert to help me with this one. Im really struggling when it comes to economics so please help me :<< Can we really estimate the so-called degree of responsiveness to price and have a standardized figure for each good and service? The fact is, this “degree” varies from person to person. That is why, from the lecture on demand, until here, we are looking at individual demand and thus, individual markets. Now, suppose you are a business owner and you sell a product that is of general applicability – whether rich or poor, they can afford and use your product. How will you apply the concept of elasticity to make more profits?Kids in the city were willing and able to buy 12 rolls of cotton candy when the price was $1.00 each and 2 rolls of cotton candy when the price was $3.00 each. However, cotton candy machine owners in the city are willing to make 2 cotton candy rolls when the price was$1.00 and 12 cotton candy rolls when the price is $3.00 ii) Assuming that the market is linear, showing all working Derive the demand curve Pd(Q) for cotton candy in the term of price, where x= quantity Derive the supply curve Ps(Q) for cotton candy in term of price, where x = quantity iii) Using your answer from part (ii), Determine the equilibrium price and quantity for cotton candy in the city