Table showing Market DemandPriceQuantity DemandedQuantity Supplied$9020 $6530 $4540 $3550 $2560 $1570 $1080 What is the equilibrium price and quantity given this information on demand in the market? Is each firm making a profit or loss? What is the amount of that profit or loss? What do you predict will happen over the long run? What if the information regarding market demand and market supply is conveyed in equations rather than tables? Practice how you would find equilibrium in a competitive market using equations for demand and supply. Suppose in a competitive market the market demand can be represented as follows: P=10−Q(andthusQ=10−P)and that market supply can be represented as follows: P=Q.Using the fact that at equilibrium the quantity demanded equals the quantity supplied, find the equilibrium price and quantity in this market.

Given Market demand equation is given as Q=10-P . .... (1) Market supply equation Q=P.…

Answered: What if the information regarding…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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Table showing Market Demand

Price	Quantity Demanded	Quantity Supplied
$90	20
$65	30
$45	40
$35	50
$25	60
$15	70
$10	80

What is the equilibrium price and quantity given this information on demand in the market? Is each firm making a profit or loss? What is the amount of that profit or loss? What do you predict will happen over the long run?

What if the information regarding market demand and market supply is conveyed in equations rather than tables? Practice how you would find equilibrium in a competitive market using equations for demand and supply.

Suppose in a competitive market the market demand can be represented as follows:

P=10−Q(andthusQ=10−P)

and that market supply can be represented as follows:

P=Q.

Using the fact that at equilibrium the quantity demanded equals the quantity supplied, find the equilibrium price and quantity in this market.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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