There are 10,000 identical individuals in the market for commodity X, each with a demand function given by Qdx = 12 - 2Px and 1000 identical producers of commodity X, each with a function given by Qsx = 20Px (a) Find the market demand function and the market supply function for commodity X.
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There are 10,000 identical individuals in the market for commodity X, each with a
given by Qdx = 12 - 2Px and 1000 identical producers of commodity X, each with
a function given by Qsx = 20Px
(a) Find the
market supply function for commodity X.
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- Consider a hypothetical situation at the Mitengo Market in Ndola where there are 1000 identical individuals buying bananas, hereafter, to be called commodity X. Each of these individuals has a demand function given by Qdx = 6-Px. In the same market there are also 100 identical producers of bananas from Ndola, each with a supply function given by Qsx = 10Px. (a) Find the market demand function and market supply function (b) Obtain the equilibrium price and quantity mathematicallyestion 1:There are 5000 identical individual buyers in the market for commodity X, and the demand function for commodity X is given by given by Qdx = 24 -4Px. There are 500 identical producers of commodity X, each with a Supply function given by Qsx = 40Pxa) Find the market demand function b) Find the market supply function for commodity X keeping maximum price 8c) Mathematically find the equilibrium price and the equilibrium quantity. d) Make on (the table given below) market demand schedule and Market Supply Schedule, keeping maximum price 8e) Plot, on one set of axes, the market demand curve and the market supply curve for commodity X and show the equilibrium point.Market Demand SchedulePrice QuantityMarket Supply SchedulePrice QuantityConsider 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. (a)Derive the equation for the supply function when PI =$90 and F = 20. (b) Using the supply function from part (a), calculate the quantity supplied when the price of the commodity is $300 and $500. (c)Derive the inverse of the supply function in part (a). using the inverse supply function; calculate the supply price for 680 units of the commodity. Give an interpretation of the supply price.
- Use the following general linear supply function: Qs = 40 + 6P - 8PI + 10F where Qs is the quantity supplied of the good, P is the price of the good, PI is the price of an input, and F is the number of firms producing the good.If PI = $20 and F = 60 what is the equation of the supply function?Group of answer choices Qs = 480 + 6P Qs = 40 + 8P P = 480 + 6Qs Qs = 400 + 6P none of the aboveConsider a production function: Q = f (L), where Q represents the output and L is thefactor of production. Let w be the per unit price of factor L and p be the per unit price ofoutput Q. Using the Envelope theorem determine the supply function and the factor demand function.. Consider the general supply function: Qs = 1,000 + 20 P - 9 PI +25 F Qs = quantity supplied P = price of the commodity PI = price of a key input in the production process F = number of firms producing the commodity b. Derive the equation for the supply function when PI = $480 and F = 60. Using the supply function from part b, calculate the quantity supplied when the price of the commodity is $1,000 and $1,500.
- MacGuffins have a demand function of QD = 70 – P and a supply function of QS = 2P + 10. Determine the supply quantity when the price is $40.Assume the demand function for a product is given by QD = 20,000 – 10P + 0.4I, where P = price of the product, and I = average income of consumers. Also, assume the supply function of the product is given by QS = 30P. If the market for the product is perfectly competitive, and the average income of consumers is $10,000, what are the equilibrium price and quantity in this market?Suppose the utility function of a person consuming two commodities X and Y with income Birr 600 is given by U =2xy. If the per unit price of X is Birr 20 and per unit price of Y is Birr 40. a) Calculate the utility maximizing level of consumption of X1 and X2. b) Find the MRSX, Y at the optimum.If the production function of a firm is given by Q=,and the input prices are r = Birr 8 per unit and w = Birr 2 per unit,
- Consider the general supply function: Qs = 1,000 + 20 P - 9 PI +25 F Qs = quantity supplied P = price of the commodity PI = price of a key input in the production process F = number of firms producing the commodity Derive the equation for the supply function when PI = $480 and F = 60.Suppose there are 4,000 students in NY each with individual inverse demand function: p=10−2Qs There are an additional 2,000 non-student residents of NY each with individual inverse demand function: p=10−4Qr The inverse demand function for all 6,000 NY residents together is given by the equation: p=For the demand function d(x) and supply function s(x), complete the following. d(x) = 600 − 0.4x, s(x) = 0.2x (a) Find the market demand (the positive value of x at which the demand function intersects the supply function).x = (b) Find the consumers' surplus at the market demand found in part (a).$ (c) Find the producers' surplus at the market demand found in part (a).$