Refer to the diagram to the right.The MarketThe equation for market demand is given by:100-Q = 950 – 10p.90-The equation for market supply is given by:80-Q, = - 400 + 20p.70-60-For the numerical questions that follow, answer them using the equations above.Do not rely on the graph.50-45At the market equilibrium price of $45, the residual demand for a given firm is:40-p = 35.00units. (Enter your response as an integer.)30-20At a market price of $35.00, the residual demand for this same firm is: units(Enter your response as an integer.)10-500dDó 100 200 300 400 500 600 700 800 900 1000Quantity (per week)The slope, n of this firm's residual demand curve is:. (Enter your responserounded to one decimal place.)tvMacBook Air80FBF9F10F2F3F4FS2#$&3456.789{WERYPDGHK>сcommandoption.. ..B>

Answer a At equilibrium Qd=Qs 950-10p=-400+20p -30p=-1350 P=45 Putting value of p=45 in Qd or Qs…

The equation for market demand is given by: Q = 950 - 10p. %3D The equation for market supply is given by: Q = - 400 + 20p. For the numerical questions that follow, answer them using the equations above. Do not rely on the graph. At the market equilibrium price of $45, the residual demand for a given firm is: units. (Enter your response as an integer.) At a market price of $35.00, the residual demand for this same firm is:units. (Enter your response as an integer.) dD The slope, . of this firm's residual demand curve is: (Enter your response dP rounded to one decimal place.)

The equation for market demand is given by: Q = 950 - 10p. %3D The equation for market supply is given by: Q = - 400 + 20p. For the numerical questions that follow, answer them using the equations above. Do not rely on the graph. At the market equilibrium price of $45, the residual demand for a given firm is: units. (Enter your response as an integer.) At a market price of $35.00, the residual demand for this same firm is:units. (Enter your response as an integer.) dD The slope, . of this firm's residual demand curve is: (Enter your response dP rounded to one decimal place.)

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 14PAE

See similar textbooks

Similar questions

Market research has revealed the following information about the market for lamps: The demand schedule can be represented by the equation QD = 24 - 3P, where OD is the quantity demanded and P is the price. The supply schedule can be represented by the equation Os-4 + 2P, where Qs is the quantity supplied. (Show all your work). a) Sketch the demand and supply curves, carefully labeling your intercepts. b)Calculate the equilibrium price (P*) and quantity (Q*) in the market for lamps. c) If the market price was artificially set at P-$6, what kind of imbalance would this create in the market (surplus or shortage)? Of exactly how much? d) If the market price was artificially set at P-$2, what kind of imbalance would this create in the market (surplus or shortage)? Of exactly how much?
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.
A company called Tramlaw has become the only employer in the local market for retail labor. The marginal value (extra profit before wages) of hiring an additional worker-hour is ?? = 60 − ?, where ?? is marginal value and ? is the hours of labor worked. The supply of workers is given as ? = ? 2 , where ? is the wage (the price of labor). Assume Tramlaw pays all retail workers in this market the same wage. For parts (a) and (b), ignore the numbers and equations (though you could use the equations as hints). a. Explain in words why Tramlaw’s marginal cost of hiring an additional worker-hour is higher than supply, which represents the marginal cost to the worker of providing an additional hour of labor. b. Draw a market diagram of Tramlaw’s local labor monopsony, including marginal value (MV), supply (S), and marginal cost (MC). Graphically indicate the monopsonist’s profit-maximizing quantity of labor ??, wage ??, the efficient quantity of labor ? ∗ , and any deadweight loss (DWL)…
Suppose that a market analysis shows that the demand and supply equations for the market are as follows: Qs=8P; QD=336-6P. Find the equilibrium price and quantity in this market. Now, using graph paper, plot the supply and demand curves carefully and verify that the curves intersect at the equilibrium price and quantity that you found. On your graph, be sure to label your axes and clearly indicate the price and quantity intercept values.
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?
Consider the perfectly competitive market for an agricultural commodity. The direct market demand curve is Q(P) = 720 − 15P and the direct market supply curve is Q (P) = 15P. The market equilibrium quantity is 360 units at a price of $24. Suppose the government imposes a price floor at P = $36.00 and uses a deficiency payment program to implement the floor. What quantity will be sold and what prices will consumers and producers face under this policy? The new equilibrium quantity is 540 units. Consumers pay $12 and the producers receive $36. Find the: a. Change in consumer surplus and producer surplus. b. Government Expenditure. c. Change in social surplus.
The Blue-Steel Corporation supplies armored truck manufacturers with high-grade sheet metal panels that are used on the exterior of the vehicles. To make the panels, Blue-Steel uses two machines, which cost $15,000 each, and workers. These workers are available on the labor market for a salary of $55,000 each. The market price for one of Blue-Steel's metal sheet panel is $250 and the market is highly competitive. a. Based on the information provided, calculate the missing values for Table 1. a. What is the total fixed cost for Blue-Steel Corporation? Explain your calculation. b. What is the profit-maximizing number of workers Blue-Steel should hire? Explain your answer. c. What is the profit-maximizing output for Blue-Steel based on your calculations? d. Construct an X-Y Scatter chart using the Workers, Total Output, and MP-Labor column data. At what point does the diminishing returns effect set in?
Question 1a. Estimate the equilibrium price and quantity of the market whose demand and supply function are pd=(q+)^2+100 and ps=(q+2)^2 respectively. 1b. If the region shaded grey in the diagram above represents a set, derive the system of inequalities that define that region. 2. The profit function, in dollars for a product given by p(x)= -x^3 + 76x^2 - 380x - 2800 Where x is the number of units produced and sold. If the break-even point occurs when 10 units are produced and sold a. Find the quadratic factor of P(x) b. Find finds the number of units other than 10 that give break-even for the product.
Consider a competitive market for which the quantities demanded and supplied (peryear) at various prices are given as follows:Price($)Demand(millions)Supply(millions)60 22 1480 20 16100 18 18120 16 20 What is the equilibrium price?
Assume that the market demand for a product is represented by the equation P=50- and its market supply by the equation P = 10 + 2Qs where Qd and are quantity demanded and quantity supplied, respectively, and P is the market price. Determine the equilibrium market price and quantity of the product. Clearly show your steps and calculations .
Demand and supply function for a firm is demand equations QD = 3550 - 266P supply equations QS = 1800 + 240P What is equilibrium price and quantity.
onsider the supply function: Qs = 60 + 5P – 12 PI + 10F , Where Qs = quantity supplied, P = price of the commodity, PI = price of a key input in the production process, and F = number of firms producing the commodity. Interpret the slope parameters on P, PI, and F. Derive the equation for the supply function when PI =$90 and F = 20. Sketch a 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. Using the supply function from part b, calculate the quantity supplied when the price of the commodity is $300 and $500. Derive the inverse of the supply function in part b. using the inverse supply function; calculate the supply price for 680 units of the commodity. Give an interpretation of the supply price.