Question

In: Economics

Microeconomics: 15. Assume we are given a demand schedule that is represented by P = 100...

Microeconomics:

15. Assume we are given a demand schedule that is represented by P = 100 – 12 Q and a supply schedule where P = 10 + 14 Q, where P = Price and Q = Quantity.

What is the equilibrium price and quantity?

  • a) $750; 75 units.

  • b) $40; 120 units.

  • c) $500; 100 units.

  • d) $52.50; 95 units.

Suppose that the supply schedule from question #15 changed to P = 5 + 12 Q. What net effect does this supply change have on equilibrium price and quantity compared to the original equilibrium?

  • a) $52.50; 95 units.

  • b) $250; 25 units.

  • c) $12.50; 20 units.

  • d) $47.50; 15 units.

Solutions

Expert Solution

PLEASE NOTE THAT THE EQUATIONS ARE NOT AS PER THEIR ORIGINAL FORM. FOR EXAMPLE, THE DIVISION SIGN IS NOT VISIBLE AT ALL. HOPEFULLY, I HAVE CONSIDERED THE EQUATION CORRECTLY. PLEASE CHECK.

SOLUTIONS

Rahul Sunny answered 8 months ago
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