Assume the aggregate demand and supply of a good are given by: Qd(p)=16−p & Qs(p)=3p−4 a.) Where p equals the price of the good. If there are no taxes imposed on the consumption or production of the good, what will be the competitive equilibrium quantity?
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Assume the aggregate
Qd(p)=16−p & Qs(p)=3p−4
a.) Where p equals the
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- S(r)=2+rI(r)=10-rCF(r)=2-2r the equilibrium condition is S(r)=I(r)+CF(r)2-1 What is the r that solves this system? r=2-2 What is the equilibrium value of S? In other words, for the value of r in equilibrium, what is the associated value of S?If consumer 1 has the demand function x1 = 1,000 − 2p and consumer 2 has the demand function x2 = 500 − p, then the aggregate demand function for an economy with just these two consumers would be x = 1,500 − 3p for p < 500. Show individual consumer demands and market demand graphically.“Generally, an economy will tend to be relatively effective at producing goods that are intensive in the factors with which the country is relatively well endowed.” Explain the above statement with the help of a graph.
- Use a matrix method to find the equilibrium prices and quantities where the supply and demand functions for Good 1, Good 2 and Good 3 are as Qd1 = 50 − 2P1 + 5P2 − 3P3, Qs1 = 8P1 − 5 Qd2 = 22 + 7P1 − 2P2 + 5P3, Qs2 = 12P2 − 5 Qd3 = 17 + P1 + 5P2 − 3P3, Qs3 = 4P3 − 1Suppose that demand for a product is given by the equation P = 150 – 3Q while the supply curve is given by the equation P = 25 + 2Q. The equilibrium market price is ____ and the equilibrium quantity is ____Which of the following would result in equilibrium shifting from point C to point A? A. There was an increase in income and technology advanced. B. There was a decrease in income and technology advanced. C. There was an increase in the price of a complement and an increase in wages paid by the firms. D. There was a decrease in the price of a complement and an increase in wages paid by the firms. E. There was an increase in the number of buyers but the number of firms remained unchang