Consider a perfectly competitive world, the demand and supply are given by Qd = 10 - 5.2*P and Qs = 5*P. How much is the equilibrium quantity? Round to two decimal places, and do not enter the currency symbol. If your answer is $1.125, enter $1.13
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I tried to calculate the equilibrium but it doesn't get a reasonable answer. I found this questions really similar. Please answer it in clear steps and details. Thank you!
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- Suppose that President Clinton has recently recommended that the U.S. should use some of the strategic oil reserves (oil stored underground and owned by the United States government) in order to solve the U.S. oil supply problem. Assume that quantity demanded in the short-run is inelastic at 1 million barrels per day. The quantity supplied (per day) is equal to 700,000 + 10,000P (where P is the price for a barrel of oil). a. What would be the current price for a barrel of oil? N b. If Clinton releases 100,000 barrels per day, what is the new equilibrium price and quantity? N c. Presidential candidate George W. Bush proposed that all states lower their gasoline tax. Assume that the gasoline tax reduction leads to a $10 decrease in the tax on a barrel of oil (i.e., supply side). What is the new price and quantity? N How much of the tax savings will be passed on to consumer through lower prices? Assume that the changes in part b. have not occurred. d. What impact do each of these two…n a perfectly competitive market, aggregate demand is given by Qd = 148 − 3Y, where as aggregate supply is given by Qs= −22 + 2Y , where QD, QS and P denote quantity demanded, quantity supplied and price, respectively. What can be said about the market outcome when price is 38? A. The government will impose a sales tax B. All sellers are making losses C. The market is in equilibrium D. There is a shortage of the product E. There is a surplus of the productRefer to the figures below and assume that price is fixed at $37,000 and that Buzzer Auto needs 4 workers for every 1 automobile produced. a. If demand is DM and Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce? ________cars How many workers will it hire? ________workers b. If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell? ______cars How many fewer workers will it need if it decides to match production to these lower sales? _________workers
- Assume prices and wages are flexible. Ceteris paribus, an increase in the supply of money will cause higher prices and higher output in the long run lower prices and higher output in the long run lower prices and unchanged output in the long run none of the above are trueExplain what happens to Pe and Qe when supply increases and when supply falls.In a perfectly competitive market, market demand is Qd(P)=209–3×P while market supply is Qs(P)=6×P–2. If the current market price is $12, what is the difference between quantity demanded and quantity supplied? Important: A positive number means excess demand, a negative number means excess supply, and 0 quantity supplied equals quantity demanded.
- Consider the market for accountants' services. Using standard notions of demand and supply, for each of the following scenarios, identify whether it could be illustrated by shift of the demand or supply curve (left or right?) and explain how the equilibrium price and quantity would change if the following things happen, ceteris paribus; a. in reaction to corporate financial scandals in the USA, the UK government forces all companies to impose stricter financial and accounting controls. b. The UK Chartered Accountants decides to limit the number of accountants entering the market by making the Board exam particularly difficult. c. More students at university graduate with accounting degrees because they believe that accounting earn higher salaries than anyone else.The short run market demand and supply for kente cloth are expressed as follows: demand: P=40-0.25Q suppl: P=5+0.05Q marginal cost: -20+4Q answer the following questiong 1. The equilibrium quantity of kente cloth is ...... metres? 2. The equilibrium price of kente cloth is .... rand? 3. The short run level of output is .... metres?Assume quantities need not be integers. Demand in a competitive market is Qd(P)=120 – (4/10)*P. If 20 units are transacted, what is the lowest marginal benefit (i.e., MWTP) at which an item is purchased? Round to two decimal places and do not enter a currency symbol. If your answer is $1.125, enter 1.13.
- Identify what sort of effects the following listed events have.You are required to define the market under study (for example: the labour market, oilmarket, etc). Explain whether the event acts on the demand or supply side, and whether theevent leads to a quantity or price change, or leads to a shift in demand and/or supply.Make sure to explain what sort of assumptions you are making on the elasticities of demandand supply.a) An increase in oil prices as a consequence of a price dispute in the world oil marketsb) The implementation of a minimum wagec) The implementation of subsidies to milk producers in Australiad) The implementation of a Carbon tax in the economy. A Carbon tax is charged according tothe level of emissions of greenhouse gases in an economy.e) The implementation of an increase in tuition in University studies. all a to e.Identify what sort of effects the following listed events have.You are required to define the market under study (for example: the labour market, oilmarket, etc). Explain whether the event acts on the demand or supply side, and whether theevent leads to a quantity or price change, or leads to a shift in demand and/or supply.Make sure to explain what sort of assumptions you are making on the elasticities of demandand supply.a) An increase in oil prices as a consequence of a price dispute in the world oil marketsb) The implementation of a minimum wagec) The implementation of subsidies to milk producers in Australiad) The implementation of a Carbon tax in the economy. A Carbon tax is charged according tothe level of emissions of greenhouse gases in an economy.e) The implementation of an increase in tuition in University studiesDue to COVID-19 situations the oil prices fall in international market. Let’s assume that output starts at its natural level.What happens to country A's economy (output and price) in the LONG run? Explain your answers using graphs. (150words)
