In the following market model, p is price, q is quantity demanded and qs is quantity supplied: q² = 3-2p, and q³ = -1 + 4p. Suppose that the market does not clear instantaneously, but that price increases when there is excess demand and decreases when there is excess supply: p = ½ (9² − 9³), where p =
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![Given:
Equilibrium Price:
(p) = 0.67
First-Order Differential Equation of (p) is:
a=2-3p
Time Path of (p), Initial Price p(0) = po:
p(t)=[2-(2-3po)] e −³t](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6274a625-9a74-4008-b392-f1961eea52c4%2Fbf46aff9-0995-470b-80dd-45e05173d50a%2Fd2bx0fw_processed.jpeg&w=3840&q=75)
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- If the demand function for a commodity is given by the equation p2 + 4q = 1200 and the supply function is given by the equation 700 − p2 + 10q = 0, find the equilibrium quantity and equilibrium price. (Round your answers to two decimal places.)Calculate the equilibrium price when the demand equation is given as:- 20P - 18 And the supply equation is :- 10P + 32Consider the general supply function: Qs=60+5p-12Pl+10F Where Qs = quantity supplied, p = price of the commodity, pl = price of a key input in the production process, and F = number of firms producing the commodity. 1. Interpret the slope parameters on p, pl, ane F. 2. Derive the equation for the supply function when pI = $90 and F = 20. 3. Sketch the graph of the supply function in part b. At what price does the supply curve intersect the price axis? Give an interpretation of the price intercept of this supply curve. 4. Using the supply function from part b, calculate the quantity supplied when the price of the commodity is $300 and $500.
- Using data on the market of a particular product, the following show the estimated demand and supply equations respectively Qd = 4,437.50 − 332.5P and Qs = 2,250 + 300P. If the new demand equation will be Qd′ = 6,123.75 − 458.85P I. What would be the new equilibrium price (round-up to 6 decimals)? J. How many of this product will be bought and sold at this new market price? Round-up to two decimals. K. List five factors that could be the reason for this change in demandSuppose the estimated supply function for avocados is given by QS = 48 + 15p – 10pf , where pf is the price of fertilizer. The estimated demand for avocados is given by Qd = 233 - 40p + 5pt , where pt is the price of tomatoes per pound. Solve for the initial equilibrium price and quantity of avocados if the price of fertilizer, pf ,is equal to $0.35 per lb. and price of tomatoes, pt, is equal to $0.80 per lb. Solve for the new equilibrium price and quantity of avocados if the price of fertilizer, pf , increases to $0.90 per lb. and price of tomatoes, pt, remains $0.80 per lb. Use these equilibrium values from parts a. and b. to solve for the price elasticity of demand for avocados. Given your calculations, are avocados elastic, inelastic or unit-elastic? Have total expenditures on avocados increased, decreased, or not changed as a result of the change in the price of fertilizer?Demand and supply in a market are described by the equation: Qd=66-3P Qs=-4+2P Solvealgebraically to find equilibrium price and quantity.
- For each of the determinants of demand in Equation 2.1, identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. Then do the same for each of the determinants of supply in Equation 2.2. In each instance, would equilibrium market price increase or decrease? Consider substitutes such as plug-in hybrids, the Nissan Leaf and Chevy Volt, and complements such as gasoline and lithium ion laptop computer batteries.Cloud Cafe is considering the sale of promotional mugs. It can have the mugs produced by one of two suppliers. Supplier A will charge them a setup fee of Php13000 plus Php40 for each mug; Supplier B has no setup fee and will charge Php60 per mug. The company estimates its demand for mugs to be given by Q=32000-400P, where P is the price in Philippine peso and Q is the number of mugs (hint: the price equation is P=80-0.0025Q). In order to make sound decisions, the company's management asked the assistance of their student trainees from FEU in assessing the cost and revenue implications of the promotional campaign. 1. If the company wants to give the mugs away for free, how many mugs should it order? 2. What is the company's marginal cost if Supplier A is chosen? 3. What is the company's marginal cost if supplier B is chosen? 4. If the company seeks to maximize profit from selling mugs and Supplier A is chosen, how many mugs should the company order? 5. If the company seeks to maximize…For a certain commodity the demand equation is given by Demand = −30p + 1000. At a price of $5, 600 units of this commodity are supplied. (a) If the supply equation is linear and the market price is $10, find the supply equation. (b)If the price of this commodity increases by $3 per unit, what effect will this have on the supply and demand of the commodity?
- Suppose market demand and supply are given by Qd = 300 - 4P and QS = -50 + 3P. What is the equilibrium price is?If the demand function for a commodity is ?2+4?=1600p2+4q=1600 and the supply function is given by the equation 300−?2+2?=0300−p2+2q=0, find the equilibrium quantity and equilibrium price.The lockdown around the world has caused the rapid growth in the electronic market as people have shifted from conventional methods to the new methods for imparting knowledge and staying connected. If demand and supply function are given as: Qd= 65 – 10P Qs= -35 + 15P Find the equilibrium price and quantity and show it on labeled D/S diagram. How do you interpret market equilibrium: (i) if P= Rs.6? (ii) if P=2? Show on the Demand-Supply diagramin (a), the graphical interpretation of your answer of (b).
