Based on the estimates of Ghose and Han (2014), the demand function for mobile applications at Apple’s App Store is QA = 1.4p-2 and the demand function at Google Play is 1.4p-3.7, where the quantity is in millions of apps. What is the total demand function for apps? If the price for an app is $1, what is the equilibrium quantity demanded by Apple customers, Google customers, and all customers? (Hint: Look at the Application “Aggregating Corn Demand Curves.”)

Q: Imagine the market for Good X has a demand function of QDX = 100 - 2PX - 4PY + .05M + 0.1AX, and a…

A: The equilibrium price is the point where the demand and supply of the market are balanced.

Q: Back to Assignment Attempts Score / 2 6.Q6 Suppose that your demand schedule for DVDS is as follows:…

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A: Answer- Given in the questions-

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Q: Nathan and Joe are shopping for video games. The demand function of George for Track and field…

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A: We are going to find Income elasticity of demand to answer this question.

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Q: Assume that brand X is an inferior good and name brand Y is a normal good. An increase in consumer…

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Q: The equation of the demand function for luxury sparkling wine is given by QD = 1520 – where Qp is…

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Q: Suppose that your demand schedule for pizza is as follows: Price Quantity of Pizzas Demanded…

A: Price elasticity of demand refers to a measure to explain the responsiveness of the quantity…

Q: Suppose the demand and supply functions are given by the following functions respectively. Price in…

A: Answer - Given in the question - Qd = 20 - 2P  (Demand Function) Qs  = 10 + 3P  (Supply Function)…

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Q: According to the midpoint method, the price elasticity of demand for oranges between point X and…

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Q: Let a demand function be given by Q(P)=100-5P, where P is between 0 and 20. Then, when the price…

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A:

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A: When income is $20000: P1=14P2=16Q1=16Q2=8Elasticity of demand=…

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Market Surplus and Shortage Analysis

In everyday language, a “surplus” indicates that there is an excess of something, while a “shortage” means that there is a scarcity of it. In economics, “market surplus” refers to the condition where the quantity of a certain good more available than what is required or “demanded” by the market. In the same way, a “market shortage” refers to the condition where the quantity of a certain good is less available than what is “demanded” by the market. If quantity in demand is written as Qd and quantity that is supplied is written as Qs, then, the condition Qs > Qd indicates market surplus and condition Qd > Qs indicates market shortage.