The market demand for Ramen noodle bowls is Q=196-5P. The market supply for Ramen noodle bowls is given by P=5+2Q. Assume the market for Ramen noodle bowls is perfectly competitive. If market price is $8 what is the difference between demand and supply? Enter a number only, drop the $ sign. If there is excess demand then input a positive number. If there is excess supply, input a negative number. If the market is in equilibrium, enter 0.

The market demand for Ramen noodle bowls is Q=196-5P. The market supply for Ramen noodle bowls is given by P=5+2Q. Assume the market for Ramen noodle bowls is perfectly competitive. If market price is $8 what is the difference between demand and supply? Enter a number only, drop the $ sign. If there is excess demand then input a positive number. If there is excess supply, input a negative number. If the market is in equilibrium, enter 0.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section: Chapter Questions

Problem 6SQ

See similar textbooks

Similar questions

In a competitive market, (inverse-) demand is P(Qd)=130 – (2/2)*Qd, while (inverse-) supply is P(Qs)=10 + (4/2)*Qs. What is the equilibrium quantity?
A vertical demand curve or supply curve would be called:
Give three examples of goods with a vertical supply curve.
The output level that occurs in any market that is in equilibrium: a) is the quantity where the supply curve intersects the y-axis. b) is the quantity where the demand curve intersects the x-axis. c) is the quantity at an output level where buyers will pay more than suppliers require. d) is an output level where buyers will not pay as much as suppliers require. e) is the quantity where the demand and supply curves intersect each other. ?
In a competitive market the demand curve is given by Q = 1600 –4P and supply by Q = 4P. What is the total surplus (TS) in the market equilibrium? a) TS = 80,000 b) TS = 1,600 c) TS = 0 d) TS = 160,000 e) none of the above.
3-1 Competitive Markets True or False (Why): In a competitive market, buyers and sellers have significant market power. 3-2 Demand What is the difference between an individual demand curve and a market demand curve? If the price of zucchini increases, causing the demand for yellow squash to rise, what do we call the relationship between zucchini and yellow squash? If plane travel is a normal good and bus travel is an inferior good, what will happen to the demand curves for plane and bus travel if incomes increase? What would be the effects of each of the following on the demand for hamburger in Hilo, Hawaii? In each case, identify the responsible determinant of demand. a) The price of chicken falls. b) The price of hamburger buns doubles. c) Scientists find that eating hamburger prolongs life. d) The population of Hilo doubles. 3-3 Supply What is the reason that a supply curve is positively sloped? If the price of corn rose, a) What would be the effect on the supply of corn? b)…
Determine the output level that is market equilibrium.
Why does a degree in price dispersion suggest that we do not have a perfect market?
At a pen price of € 2.28, the supplier agrees to produce 7,500 pens and the demand for pens is 7,900. At a price of € 2.37, the supplier agrees to produce 7,900 pens, but the demand is 7,800. The demand and supply functions of pens are known to be linear. Construct supply and demand equations and find a balance between price and quantity.
Imagine a new company enters a market selling tutoring. The firm does some experimentation in the market, and it reports the following data points. At $75 per student, 2,250 students sign up for tutoring. At $30 per student, 9,000 students sign up. At $150 per student, no students sign up. 1.Write the equation representing this demand curve. 2. Relax the assumption that demand is linear; instead, assume only that the law of demand holds. Given this assumption and the data you observe, what can we say about the number of students who sign up at prices greater than $75? The school’s accountants determine that when the price per student is $15 it can supply 1,500 spots for tutoring, and that when the price is $45, it can supply 7,500. 3.Relax the assumption that supply is linear; instead, assume only that the law of supply holds. Given this assumption and the data you observe, what can we say about the number of student slots the school supplies at prices greater than $400? 4.Find the…
The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=220-3P. Market Supply is given by P=4+2Q. At a price of $60, what is the difference between market demand and market supply? Enter a number only. If there is excess demand then input a positive number. If there is excess supply, input a negative number. If the market is in equilibrium, enter 0.