Suppose the demand curve is downward sloping, the supply curve is upward sloping, and the equilibrium quantity is 50 units. Show on a graph that the difference between the maximum buying price and minimum selling price is greater at 25 units than at 33 units.

Q: quilibrium price of gasoline.

A: The ‘law of supply’ states, ceteris paribus (keeping other things constant) when the price(P) of a…

Q: demand

A: The law of supply states, ceteris paribus (keeping other things constant) when the price increases ,…

Q: Suppose you have the information shown in the table below about the quantity of a good that is…

A: Consumer surplus= 12×(maximum price-actual price)×Quantity Producer surplus=12×(actual price-minimum…

Q: Consider the market for wood burning stoves, if there is a decrease in the price of electricity and…

A: Law of demand states that there exists negative relationship between price and quantity demanded of…

Q: each locus on the demand curve reflects

A: Demand is defined as an economic term that refers to a customer's ability to purchase goods and…

Q: Of the following, which situation would cause the shift of the supply curve from S1 to S2? D P1 P2…

A: A shift in supply curve may cause due to various such as change in number of firms, raw material,…

Q: Consider the demand for shrimp shown in Figure 2. Suppose the current demand for shrimp is D (in…

A: A leftward shift in the demand curve would cause the price to remain the same but equilibrium…

Q: If the demand for a pair of shoes is given by 2p + 5q = 200 and the supply function for it is p − 2q…

A: The demand curve illustrates the relationship between price and the quantity demanded of a good.…

Q: Assume that demand for a commodity is represented by the equation             P = 10 − .2Qd and…

A: The equilibrium in a market is achieved where the quantity demanded is equal to the quantity…

Q: Use the table below to answer the question that follows: Price Quantity Demanded Quantity…

A: In the demand and supply model at the equilibrium price level, the quantity demanded of the good…

Q: Take a linear demand curve like the one discussed in class, where the range of prices for which…

A: Demand and Supply  Demand refers to the quantities of a commodity that the consumers are ready to…

Q: Consider the demand for shrimp shown in Figure 2. Suppose the current demand for shrimp is D (in…

A: Demand curve: - demand curve is the graphical way of showing the relationship between the quantity…

Q: Price S1 S2 D2 D1 Quantity In the above graph, suppose equilibrium is at point D. What would cause…

A: The markets are operated through the workings of the forces of demand for goods, and services, and…

Q: Suppose the demand curve shifts to the right and the supply curve shifts to the Right by more than…

A: New demand curve: Downward sloping New supply curve: Upward sloping

Q: Using the demand function, Q = 8.56 − p − 0.3ps + 0.1Y, and the supply function, Q = 9.6 + 0.5p −…

A: Given : Demand function : Q = 8.56 − p − 0.3ps + 0.1Y Substituting ps = 0.20 and Y =55000, we get  Q…

Q: Suppose the market demand for pizza is given by Q = 300 – 20P The market supply for pizza is given…

A: Market demand: Qd = 300 - 20P Market supply: Qs =20P - 100 Where P = price per pizza -------------…

Q: Q1. On the graph below, draw the direction of change for the demand curve for concert tickets when…

A: As you have not mentioned the exact question to answer I am answering first question.

Q: Suppose the market demand curve for cranberry is given by the equation Qd=500-4P, while market…

A: At equilibrium price  Demand = Supply

Q: Explain why you think that the demand of one product may diminish as prices are increased

A: As per Law of Demand, the demand of any good decreases with increase in price given other…

Q: Which of the following causes the demand curve to shift? A change in the price of inputs Technology…

A: Demand curve show the relationship between quantity demanded and price. According to the law of…

Q: If new substitutes are developed for a product, what will likely happen to the demand curve for that…

A: The price elasticity of demand measures the responsiveness of the quantity demanded of a good or…

Q: The demand for air conditioners is P=3,500 - 100Q, The supply of air conditioners is P=2,500+40Q.…

A: Market equilibrium Market equilibrium refers to a condition at which quantity demanded of a…

Q: Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B…

A: Substitute goods are those goods that can be consumed by an individual in place of each other by the…

Q: At a pen price of € 2.28, the supplier agrees to produce 7,500 pens and the demand for pens is…

A: Price and quantity are balance when they both are at the equilibrium point where S(x) = D(x) and…

Q: Consider the supply of nails shown in Figure 2. The initial supply of nails is S (in black), the…

A: Supply curve is upward sloping because at a higher price firms want to sell/produce more.

Q: Which factor that influences change in buying plan, other than price of good? Find [05] out market…

A: There are many reasons due to which the demand or the buying plan of the consumers change other than…

Q: Suppose the supply and demand for wallets is given by the following equations: Demand: P 49.75 -…

A: Equilibrium in the market occurs where quantity demanded equals quantity supplied.

Q: What is the difference between an individual demand curve and a market demand curve? If the price of…

A: We are authorized to answer one question at a time, since you have not mentioned which question you…

Q: Given that the demand is Qd=90-3P and supply is Qs=P-10, compute the new equilibrium price and…

A: Price has an inverse relationship with quantity demanded.

Q: Using the market demand graph, show the law of demand.

A: The marginal utility is the additional utility derived from a commodity. The law of demand is based…

Q: Suppose the equilibrium price of good X is $10 and the equilibrium quantity is 60 units. If the…

A: Price=$10 Quantity=60 units; Price=$4

Q: Consider the demand for shrimp shown in Figure 2. Suppose the current demand for shrimp is D (in…

A: Through the information given above, you can see different prices and quantity demanded where at $15…

Q: Explain the law of demand. Why does a demand curve slope downward? How is a market demand curve…

A: The law of demand says that other constant variables are inversely related to each other (citrus…

Q: TRUE OR FALSE? An increase in price tends to make consumer buy less and sellers to sell more. A…

A: The economic theory of supply and demand seeks to explain the link that exists between the…

Q: By providing an example, explain three factors that might shift the demand curve for a product…

A: Demand is the quantity theta. Consumer are willing to pay for it at certain place and time .  It is…

Q: Define the market demand equation and supply equation. Find the equilibrium price and quantity in a…

A: The demand curve is downward sloping and the supply curve is upward sloping which determines the…

Q: Explain how the conditions for consumer equilibrium help to support the law of demand. Give an…

A: The law of demand says that there is an inverse association between the price of a service and…

Q: Suppose the market for hats is competitive, with many small producers of hats, each of them unable…

A: Since the question you have posted consists of multiple parts, we will answer the first three parts…

Q: Explain why a demand curve slopes downward.

A: Demand curve shows the quantity of a commodity that a consumer is willing to buy and able to buy at…

Q: Assume we are looking at the corn market (corn is a normal good). For each of the following…

A: Here, it is given that corn is a normal good due to which it's demand will positively linked with…

Q: Suppose that the graph illustrates the market demand for video games per month with an equilibrium…

A: Demand refers to the desire backed by ability to buy and willingness to pay for a good and services…

Q: Suppose the equilibrium price of yoghurt is $10, and the equilibrium quantity is 12 units. If the…

A: When the market is in equilibrium, demand is equal to supply and there is no shortage or excess…

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.