Use the following Market Research for questions 10 -13 QD = 3000 - 500P and QS...

Use the following Market Research for questions 10 -13

Q_D = 3000 - 500P and Q_S = 400 + 800P

What is the market equilibrium price?

Question 10 options:

	$2.00
	$1.00
	50 cents
	20 cents

Question 11 (3 points)

Use the following Market Research for questions 10 -13

Q_D = 3000 - 500P and Q_S = 400 + 800P

What is the equilibrium quantity?

Question 11 options:

	1540 units
	2000 units
	2200 units
	2300 units

Question 12 (3 points)

Use the following Market Research for questions 10 -13

Q_D = 3000 - 500P and Q_S = 400 + 800P

What is correct at a price of 50 cents?

Question 12 options:

	Qs = 2750 units
	Qd is 1950 units less than Qs
	Qs is 1950 units greater than Qd
	a shortage of 1950 units exists
	two of the above are correct

Question 13 (3 points)

Use the following Market Research for questions 10 -13

Q_D = 3000 - 500P and Q_S = 400 + 800P

What is correct at a price of $3.50?

Question 13 options:

	Qs = 1250 units
	Qd is 1950 units less than Qs
	Qs is 1950 units greater than Qd
	a surplus of 1950 units exists
	two of the above are correct

Solutions

Expert Solution

Solutions of the above are in the pic below.

for Q 12) pardon me for slight mess up. Correct answer for it is - a shortage of 1950 units exists. Since QD > QS, QD - QS = 2750 - 800 = 1950 units.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Assume that marker Demand is Qd = 3000 – 20P and Market Supply is Qs =...

Assume that marker Demand is Qd = 3000 – 20P and Market Supply is Qs = 10P. Show work (the equations you are solving) for full credit. a. Determine EQM P and EQM Q. b. Determine CS and PS. Now assume that the government has decided to alter this market with a $15 subsidy to consumers. c. How many units are now exchanged (the new EQM Q with the subsidy) d. What is the price consumers now pay? e. What...

2. The market for Instagram followers is deﬁned by these equations: QD = 3000−200P QS =...

2. The market for Instagram followers is deﬁned by these equations: QD = 3000−200P QS = 300P + 500 (a) Find the equilibrium price and quantity. (b) Graph the supply and demand curves and clearly label the equilibrium. (c) If an Instagram poster refuses to pay for followers (P = 0), how many followers will he have? (Hint: You won’t ﬁnd an equilibrium at this price, but how many will the market supply?) (d) Why might the market supply a...

The market for cigars is characterized by QD = 10 – 0.25 P and QS =...

The market for cigars is characterized by QD = 10 – 0.25 P and QS = 0.15 P, where P is price per box of cigars and Q measures boxes per hour. a. What is the equilibrium price of cigars? b. Suppose the government taxes sellers $5 per box. What are the after-tax prices that buyers pay and sellers receive? c. Suppose the government taxes buyers rather than sellers $5 per box. What are the after-tax prices that buyers pay...

1. Suppose the market demand for rutabagas is QD = 10 - 0.25P and the QS...

1. Suppose the market demand for rutabagas is QD = 10 - 0.25P and the QS = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. What is the equilibrium price of rutabagas? 2. Suppose the market demand for rutabagas is QD = 10 - 0.25P and the QS = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. What is the equilibrium quantity...

Suppose the market for corn is given by the following equations for supply and demand: QS = 2p − 2 QD = 13 − p

Suppose the market for corn is given by the following equations for supply and demand: QS = 2p − 2 QD = 13 − p where Q is the quantity in millions of bushels per year and p is the price. Calculate the equilibrium price and quantity. Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price. Calculate the price-elasticity of demand and supply at the equilibrium price/quantity. The government judges the...

The market for a product is defined by the following demand and supply curves: Qd=26-0.1P Qs=-10+0.3P...

The market for a product is defined by the following demand and supply curves: Qd=26-0.1P Qs=-10+0.3P Assume that an ad valorem tax of 50 per cent (i.e. t=0.5) is placed on the product. (a) On the diagram you have drawn in (i), add the new supply curve reflecting the impact of the ad valorem tax. (b) Derive mathematically the new equilibrium consumer and producer prices and quantity. (c) Find the amount of tax revenue gained by the...

Consider the following market model: Qd t = 10 Qs t = −1 + 2Pt Pt+1...

Consider the following market model: Qd t = 10 Qs t = −1 + 2Pt Pt+1 = Pt − 0.1(Qs t − Qd t ) where P is the price, Qd is the quantity demanded, Qs is the quantity supplied and t is time period. Set up a difference equation in terms of market price P, present its general solution, and draw a phase diagram(Cobweb Model).

A market is described by the equation Qd=100-P and Qs=P. A tax of $10 is placed...

A market is described by the equation Qd=100-P and Qs=P. A tax of $10 is placed on the seller of the product such that he will receive less to take home than the original equilibrium price. Therefore, the new supply equation becomes Qs=(p-t). Does the seller pay the whole $10 of the tax burden? How much does the seller pay? How much does the buyer pay? Why do they split the burden this way?

Suppose that a market has the following demand and supply functions (normal) : Qd=10-p and Qs=2P-2...

Suppose that a market has the following demand and supply functions (normal) : Qd=10-p and Qs=2P-2 Graph the demand and supply 1. what is the equilibrium price 2. what is the equilibrium quantity 3. what is total surplus at this equilibrium 4. If the government imposed a $3/unit excise tax on producers in this market, what would be the new price that consumers pay? 5. If the government imposed a $3/unit excise tax on producers in this market, what would...

Suppose market QD = 90 – 15P and market QS = 6P – 204 and the...

Suppose market QD = 90 – 15P and market QS = 6P – 204 and the representative firm’s total cost is TC = 4 + 3q + 0.1q2 and its marginal cost is MC = 3 + 0.2q. a.What is market equilibrium price? Show your work. b.What is the firm’s profit maximizing level of output at this price? Assume this is a perfectly competitive industry. c.What is the firm’s profit? d.If these same market conditions persist, would there likely be...

Subjects