Pesticide Services. The market for pesticide services per hour is competitive. The market supply and demand...

Pesticide Services. The market for pesticide services per hour is competitive. The market supply and demand functions are given respectively by P = 20 + 0.5Q_S and Q_D = 620 - 10P.

What is the minimum amount suppliers would need to receive before supplying any hourly pesticide services? If these services were free, how many would be demanded per hour?

What is the equilibrium market price and quantity of pesticide services provided per hour? Provide a graph of the market equilibrium (include intercepts)

Solutions

Expert Solution

Rahul Sunny answered 2 months ago

Next > < Previous

Related Solutions

A perfectly competitive market with the following demand and supply conditions:

A perfectly competitive market with the following demand and supply conditions: QD = 14,000 – 1,500P QS = -6,000 + 1,000P (a) Find the equilibrium price P and quantity Q in this market. (b) If there are 50 identical firms in this market, how much is each firm producing (q)? How much profit is each firm making? q = _______; profit = _______; (c) Suppose that demand in the market shifts to QD’ = 16,500 – 1,500P. What is the...

Market in competitive equilibrium, the demand is the demand and supply respectively are p = 100...

Market in competitive equilibrium, the demand is the demand and supply respectively are p = 100 - QD and p = 20 + (QS /3). The government introduces a subsidy of s = $4 per unit of the good sold and bought Suppose the government is trying to determine the amount of subsidy (they think they can do better than s=$4), to maximize the equilibrium quantity transacted (bought and sold) in the market, yet it has a budget of $1500...

The corn market is perfectly competitive, and the market supply and demand curves are given by...

The corn market is perfectly competitive, and the market supply and demand curves are given by the following equation: Qd =50,000,000 – 2,000,000 p Qs = 10,000,000 +5,500,000 p Where Qd and Qs are quantity demanded and quantity supplied measured in bushels, and P= price per bushel. 1) Determine consumer surplus at the equilibrium price and quantity.

Demand in a perfectly competitive market is Q = 100 - P. Supply in that market...

Demand in a perfectly competitive market is Q = 100 - P. Supply in that market is Q = P - 10. (i) If the government imposes a $10 per unit sales tax, what is the consumer price, seller price, and quantity? (ii) Once the government imposes the tax, how much consumer surplus, producer surplus, and dead-weight loss is there?

Suppose the demand and supply curves of a perfectly competitive market are: Supply: Q = P...

Suppose the demand and supply curves of a perfectly competitive market are: Supply: Q = P - 10 Demand: Q = 90 - P (1) Solve for the market equilibrium (price and quantity at equilibrium) (2) Solve for Welfare (Total Surplus). (3) Suppose a per-unit tax of $10 is imposed in the market. Calculate tax revenue and deadweight loss.

Suppose that demand and supply for a competitive market are as follows: Qd = 320 -...

Suppose that demand and supply for a competitive market are as follows: Qd = 320 - P and Qs = -40 + 2P What would be the price and output combination that would result if firms in this market merged together to become a profit maximizing monopolist? By how much would the price change from the competitive level?

Suppose that the market for cigarettes is a competitive market and is described by the following supply and demand functions:

Suppose that the market for cigarettes is a competitive market and is described by the following supply and demand functions:Demand: QD = 100000 – 500PSupply: QS= – 20000 + 2000PWhere Q is the number of packets and P is the price per packet of cigarettes.(a) Calculate the equilibrium price and quantity and draw a diagram to illustrate your answer.(b) Show on your diagram and calculate the size of the:(i) Consumer surplus(ii) Producer surplus(iii) Total surplus(iv) Deadweight loss(c) Suppose the government...

In an unregulated competitive market, supply and demand have been estimated as follows: Demand P =...

In an unregulated competitive market, supply and demand have been estimated as follows: Demand P = 25 – 0.1Q. Supply P = 4 + 0.116Q Calculate annual aggregate consumer surplus. Calculate annual aggregate producer surplus. Define what producer surplus means. The elected officials in a west coast university town are concerned about the excessive rents being charged. The city council is contemplating the imposition of a $350 per month rent ceiling on apartments. An economist estimates the supply and demand...

Consider a competitive market characterized by the following supply and demand formulas: Demand: P = 105...

Consider a competitive market characterized by the following supply and demand formulas: Demand: P = 105 - 0.25QD Supply: P = 0.275QS (c) With the aid of a diagram, carefully explain what would happen in this market if the government were to impose a price ceiling of $30 per unit in this market. As part of your answer calculate the size of the deadweight loss associated with this price control.

In a competitive market, the demand and supply curves are Q(p) = 18 - p and...

In a competitive market, the demand and supply curves are Q(p) = 18 - p and S(p) = 2p respectively. What is the price level in the competitive equilibrium?

Subjects