Question
In: Economics
1) Given the following equations: QD = 5,000 + 0.5 I + 0.2 A -...
1) Given the following equations:
QD = 5,000 + 0.5 I + 0.2 A - 100P, and QS = -5000 + 100P
where Q is the quantity per year, P is price, I is income per household, and A is advertising expenditure.
a. If A = $10,000 and I = $25,000, what is the demand curve?
b. Given the demand curve in part a., what is equilibrium price and quantity?
c. If consumer incomes increase to $30,000, what will be the impact on equilibrium price and quantity?
2) Industry supply and demand are given by QD = 1000 - 2P and QS = 3P.
a. What is the equilibrium price and quantity?
b. At a price of $100, will there be a shortage or a surplus, and how large will it be?
c. At a price of $300, will there be a shortage or a surplus, and how large will it be?
Solutions
Rahul Sunny answered 1 month agoRelated Solutions
1) Given the following equations: QD = 5,000 + 0.5 I + 0.2 A -...
1) Given the following equations:
QD = 5,000 + 0.5 I + 0.2 A - 100P, and QS = -5000 +
100P
where Q is the quantity per year, P is price, I is income per
household, and A is advertising expenditure.
a. If A = $10,000 and I = $25,000, what
is the demand curve?
b. Given the demand curve in part a., what is
equilibrium price and quantity?
c. If consumer incomes increase to $30,000, what
will...
1-Given the following two equations: Qd = 150 – 3P Qs = 70 + 2P A-...
1-Given the following two equations: Qd = 150 – 3P Qs = 70 + 2P
A- Calculate the equilibrium price and the equilibrium quantity.
Show all your work. B- Using the above two equations tofind the
values of Qd, Qs, the market situation
(Shortage/Surplus/Equilibrium), and the Value of shortage or
surplus if any, at the following prices. 10, 15,20 and 25. C- If
the consumer income increases by 20%, what will happen to the
equilibrium price and quantity 2-Question two...
Consider the following demand and supply equations. Demand is given by qd = a – bP,...
Consider the following demand and supply equations. Demand is
given by qd = a – bP, where qd is the quantity demanded and P is
the price. a and b are parameters (constants) Similarly, the supply
function is given by qs = d + eP, where qs is the quantity supplied
and d and e are constants
a. Plot the demand and supply functions. Label the intercepts
clearly.
b. What is the market equilibrium price and quantity?
1. (a) The demand and supply equations for a good (X) are given by Qd= 4000...
1. (a) The demand and supply equations for a good (X) are given
by Qd= 4000 – 25p and Qs = -2000 + 35P respectively, where P =
price.
(i) Draw the demand and supply curves for good X on a graph.
(ii) Find the equilibrium price and quantity.
(iii) The government imposes a specific sales tax of R20 per
unit on good X. Show the resulting effect on the graph and find the
new equilibrium price and quantity.
(iv)...
Suppose the supply and demand curves for natural gas are given by the following equations: QD...
Suppose the supply and demand curves for natural gas are given
by the following equations:
QD =34−1.8P QS =18+0.7P,
where Q denotes the quantity of natural gas in thousands of
cubic feet and P denotes the price of gas per thousand cubic
feet.
4a) Find the equilibrium price and quantity of natural gas.
Illustrate your answer using a supply and demand diagram.
4b) Now suppose that the government regulated the market for
natural gas and set the regulated price of...
Correlations: -0.9, -0.5, -0.2, 0, 0.2, 0.5, and 0.9. For each, give the fraction of the...
Correlations: -0.9, -0.5, -0.2, 0, 0.2, 0.5, and 0.9. For each,
give the fraction of the variation in Y that is explained by the
least- squares regression of Y on X. Summarize what you have found
from performing these calculations.
Consider the following Markov chain: 0 1 2 3 0 0.3 0.5 0 0.2 1 0.5...
Consider the following Markov chain:
0
1
2
3
0
0.3
0.5
0
0.2
1
0.5
0.2
0.2
0.1
2
0.2
0.3
0.4
0.1
3
0.1
0.2
0.4
0.3
What is the probability that the first passage time
from 2 to 1 is 3?
What is the expected first passage time from 2 to
1?
What is the expected first passage time from 2 to 2
(recurrence time for 2)? What is the relation between this
expectation and the steady-state...
Solve the c, d, e, f from the given equations. e+2f=-1 2d+e=-0.2 2c+d+3e+4f=-0.5 -e-2f=1
Solve the c, d, e, f from the given equations.
e+2f=-1
2d+e=-0.2
2c+d+3e+4f=-0.5
-e-2f=1
Consider an economy described by the following equations: Y =C+I+G+NX, Y =5,000, G = 1, 000,...
Consider an economy described by the following equations:
Y =C+I+G+NX, Y =5,000,
G = 1, 000,
T = 1, 000,
C =250+0.75(Y −T), I = 1, 000 − 50r,
NX = 500 − 500ε, r = r∗ = 5
(a) In this economy, solve for national savings, investment, the
trade balance, and the equilibrium exchange rate.
(b) Suppose that G rises to 1,250. Solve for national saving,
investment, the trade balance, and the equilibrium exchange rate.
Explain what you find....
In the market for used cars, the demand and supply equations are given by QD=12,000 -.4P...
In the market for used cars, the demand and supply equations are
given by QD=12,000 -.4P and QS=.1P+5000, where P is the price per
car and Q measures the quantity of cars. What is the size of the
deadweight loss at a price floor of $15,000?
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