EBK MICROECONOMICS
2nd Edition
ISBN: 9780134458496
Author: List
Publisher: VST
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 14P
(a)
To determine
Equilibrium price and quantity.
(b)
To determine
The effect on equilibrium price and quantity when the input prices of a computer rise.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
An economist has estimated that the demand function for cars is approximately D = −400P + 4I where I is the mean household income. The Supply of cars is estimated to be S = 2p
(a) What is the equilibrium price of cars (it will be a function of I)?(b) How does the equilibrium price of cars change when I changes?
Suppose that the quantity of corn supplied depends on the price of corn (P) and the amount of rainfall (R). The demand for corn depends on the price of corn and the level of disposable income (I). The equations describing the supply and demand relationships are Qs = 20R + 100P and Qd = 4000 − 100P + 10I.
a) Sketch a graph of demand and supply curves
b) Sketch a graph that shows the effect of an increase in rainfall on the equilibrium price and quantity of corn.
c) Sketch a graph of demand and supply curves that shows the effect of a decrease in disposable income on the equilibrium price and quantity of corn.
A certain manufacturer has determined that the weekly demand and supply
functions for their product are given by the equations:
supply:
p=-2x² +80
demand: p = 15x+30
where z represents the quantity demanded in units of a thousand and p is the unit
price in dollars. Find the market equilibrium (equilibrium price and equilibrium
quantity).
Knowledge Booster
Similar questions
- Consider two markets: the market for motorcycles and the market for pancakes. The initial equilibrium for both markets is the same, the equilibrium price is $4.50, and the equilibrium quantity is 29.0. When the price is $7.75, the quantity supplied of motorcycles is 65.0 and the quantity supplied of pancakes is 103.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for pancakes. Please round to two decimal places.arrow_forwardSuppose the demand and supply of tea are modeled by the two following functions: Q = 8P + 11 Q = -65P+ 109 What is the equilibrium price of tea? Round your answer to two places after the decimal point (0.01).arrow_forwardIn the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qda = 0.3N + 0.05PT -0.02PH. Initially, average consumer income is N = $50,000 and the average price of townhouses is $290,000. Making these substitutions, we get Qda = 29,500 - 0.02PH. This is our current demand equation. Suppose N = 50,000 and PH = 230,000. If the price of townhouses decreases from $290,000 to $255,000, what is the cross-price elasticity of demand for housing? i Click the icon to view the derivation of the current demand equation. The cross-price elasticity of demand for housing when N = 50,000, PH = 230,000, and the price of townhouses decreases from $290,000 to $255,000 is Ea b This is Single detached homes and townhouses are (Round to two decimal places as needed.) perfectly elastic. elastic. unit elastic. perfectly inelastic. inelastic.arrow_forward
- Your research department estimates that the supply function for high definition televisions (HDTVs) is given by Qxs = 2,000 + 3 Px − 4 Pt − Pw where Px is the price of HDTVs, Pt represents the price of a tablet, and Pw is the price of an input used to make HDTVs. Suppose HDTVs are sold for $400 per unit, tablets are sold for $250 per unit, and the price of an input is $1,400. How many HDTVs are produced?arrow_forwardA local store will buy 20 doorbell cameras from a supplier if the price is $77 each. If the price drops to $27 , then the store will buy 30 . The supplier is willing to sell 66 doorbell cameras for the price of $50.50 each, but only 49 at a price of $42.00 each. Find the supply and demand functions and the market equilibrium point. Assume both the supply and demand are linear. Use integers, fractions or decimals to describe the slopes and p-intercepts. A) What is the equation for the demand? p= B) What is the equation for the supply? p= c) What is the market equilibrium point?Explain in detailsarrow_forwardIn the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qd = 0.3N + 0.08PT - 0.02PH. Initially, average consumer income is N= $50,000 and the average price of townhouses is $315,000. Making these substitutions, we get Qd = 40,200 – 0.02PH: This is our current demand equation. Suppose income changes from $50,000 to $60,000. What is the income elasticity of demand for housing when the price is $220,000? Click the icon to view the derivation of the current demand equation. The income elasticity of demand for housing when the price is $220,000 and income changes from $50,000 to $60,000 is EN = |. This is Housing is good. (Round to two decimal places as needed.) perfectly inelastic. perfectly elastic. inelastic. elastic. unit elastic.arrow_forward
- The quantity demanded of Fitbit devices is 8,025 units when the price is $260. At a unit price of $200, demand increases to 10,000 units. The manufacturer will not market any of the device at a price of $100 or less. However for each $50 increase in price above $100, the manufacturer will market an additional 1,000 units. Assume that both the supply equation and the demand equation are linear. a) Find the supply equation. b) Find the demand equation. c) Find the equilibrium quantity. d) Find the equilibrium price.arrow_forwardWhich factor that influences change in buying plan, other than price of good? Find out market equilibrium price and quantity from the demand function: QD = 15-4p and supply function: QS= - 1+ 6p. Show it graphically.arrow_forwardIn the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, PT. The demand equation is Qd = 0.1N+0.05PT-0.02PH. Initially, average consumer income is N = $40,000 and the average price of townhouses is $300,000. Making these substitutions, we get Qd = 19,000 -0.02PH. This is our current demand equation. Suppose income changes from $40,000 to $50,000. What is the income elasticity of demand for housing when the price is $230,000? iClick the icon to view the derivation of the current demand equation. The income elasticity of demand for housing when the price is $230,000 and income changes from $40,000 to $50,000 is EN=. This is Housing is good. (Round to two decimal places as needed.) perfectly inelastic. elastic. unit elastic. inelastic. perfectly elastic.arrow_forward
- The quantity demanded x for a certain brand of MP3 players is 300 units when the unit price p is set at $100. The quantity demanded is 1300 units when the unit price is $60. Find the demand equation.p =arrow_forwardSuppose the demand curve for an air fryer is given by the following linear function: p = 0.25x + 250. a) Explain what 0.25 means in terms of the price and quantity. b) Explain why this demand curve would not do a good job of representing the relationship between the demand of a product and the price of an item.arrow_forwardConsider two markets: the market for waffles and the market for pancakes. The initial equilibrium for both markets is the same, the equilibrium price is $6.50, and the equilibrium quantity is 35.0. When the price is $9.75, the quantity supplied of waffles is 57.0 and the quantity supplied of pancakes is 101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for pancakes. Please round to two decimal places. Supply in the market for waffles isarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning