I have filled in al the mathematical answers / just need graphs that are bold with asteriks The following relations describe monthly demand and supply for a computer support service to small businesses: Qd = 3000 - 10P Qs = -1000 + 10P Where Q is the number of businesses that need services and P is the monthly fee, in dollars. At what average monthly fee would demand equal zero? Qd = 3000 – 10P 0 = 3000 – 10P 10P = 3000/10
I have filled in al the mathematical answers / just need graphs that are bold with asteriks
The following relations describe monthly
Qd = 3000 - 10P
Qs = -1000 + 10P
Where Q is the number of businesses that need services and P is the monthly fee, in dollars.
At what average monthly fee would demand equal zero?
Qd = 3000 – 10P
0 = 3000 – 10P
10P = 3000/10
P = $300
At what average monthly fee would supply equal zero?
Qs = -1000 + 10P
0 = -1000 + 10P
-10P = -1000
P = 1000/10
P = $100
***Plot the supply and demand curves.
What is the
We know at equilibrium, Qd = Qs
3000-10P = -1000+10P
3000 + 1000 = 10P + 10P
4000 = 20P
4000/20
P = $ 200 (Equilibrium Price)
If P = $200
Qd = 3000 – 10(200)
Qd = 3000 – 2000
Qd = 1000 units (Output level)
Qs = -1000 + 10(200)
Qs = -1000 + 2000
Qs = 1000 units (Output level)
Suppose demand increases and leads to a new demand curve: Qd = 3500 - 10P
Qd = 3500 – 10P Qs = -1000 + 10P
@ Equilibrium, Qd = Qs
3500 – 10P = -1000 + 10P
3500 + 1000 = 10P + 10P
4500 = 20P
P = 4500/20
P = $225
If P = $225, the equilibrium balance should be Qd = Qs
Qd = 3500 – 10P
Qd = 3500 – 10(225)
Qd = 3500 – 2250
Qd = 1250 units Equilibrium balance
Qs = -1000 + 10P
Qs = -1000 + 10(225)
Qs = -1000 + 2250
Qs = 1250 units Equilibrium balance
Suppose new suppliers enter the market due to the increase in demand so the new supply curve is Q = -500 + 10P. What are the new equilibrium price and
At equilibrium, Qd = Qs
3500 – 10P = -500 + 10P
3500 + 500 = 10P + 10P
4000 = 20P
4000/20
P = 200
With P at 200,
Qd = 3500 – 10(200)
Qd = 3500 – 2000
Qd = 1500 Equilibrium balance
Qs = -500 + 10(200)
Qs = -500 + 2000
Qs = 1500 Equilibrium balance
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