Question

In: Economics

When the price is $30 per unit, buyers in a market are willing to buy 400...

When the price is $30 per unit, buyers in a market are willing to buy 400 gadgets and when the price is $60 per unit, they are only willing to buy 100 gadgets. When the price is $30 per unit, sellers in a market are only willing to sell 150 gadgets and when the price is $60 per unit, they are willing to sell 225 gadgets. Assume (1) the economic environment of buyers (their income, tastes or preferences, other prices, and expectations) and sellers (technology, input prices, etc.) are constant and (2) the demand and supply curves are linear all along. What price in this market would make the quantity demanded equal to 200 units?

Solutions

Expert Solution

SOL;

Equation for demand function will be

P - 30 = [60 -30]/[100- 400] [Q - 400]

P - 30 = -1/10 [Q - 400]

P = 70 - Q/10

IF Q = 200

P = 50

Equation for supply function

P - 30 = [60 - 30]/ [225 - 150] [Q - 150]

P - 30 = 2/5 [Q - 150]

P = 2/5 Q - 30

IF Q = 200

P = 50

So at price of 50 demand will equal 200 and market will be in equilibrium.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

When the price is $30 per unit, buyers in a market are willing to buy 400...
When the price is $30 per unit, buyers in a market are willing to buy 400 gadgets and when the price is $60 per unit, they are only willing to buy 100 gadgets. When the price is $30 per unit, sellers in a market are only willing to sell 150 gadgets and when the price is $60 per unit, they are willing to sell 225 gadgets. Assume (1) the economic environment of buyers (their income, tastes or preferences, other prices,...
When the price is $30 per unit, buyers in a market are willing to buy 400...
When the price is $30 per unit, buyers in a market are willing to buy 400 gadgets and when the price is $60 per unit, they are only willing to buy 100 gadgets. When the price is $30 per unit, sellers in a market are only willing to sell 150 gadgets and when the price is $60 per unit, they are willing to sell 225 gadgets. Assume (1) the economic environment of buyers (their income, tastes or preferences, other prices,...
When the price is $30 per unit, buyers in a market are willing to buy 400...
When the price is $30 per unit, buyers in a market are willing to buy 400 gadgets and when the price is $60 per unit, they are only willing to buy 100 gadgets. When the price is $30 per unit, sellers in a market are only willing to sell 150 gadgets and when the price is $60 per unit, they are willing to sell 225 gadgets. Assume (1) the economic environment of buyers (their income, tastes or preferences, other prices,...
When a shortage exists in the market, the price is below equilibrium. Consequently, buyers are willing...
When a shortage exists in the market, the price is below equilibrium. Consequently, buyers are willing to buy more than sellers are willing to sell at that price. If demand and supply curves do not move, more will be sold only if the price increases. Select one: True False Question text If Betty experiences a decrease in pay, we would expect Betty’s demand for inferior goods to increase. Select one: True False A decrease in supply causes price to rise,...
Consider a market with 30 sellers and 30 buyers. Of 30 sellers, there are 10 ”high-cost” sellers with production costs of $25 per unit and 20 ”low-cost” sellers with costs of $5 per unit.
Consider a market with 30 sellers and 30 buyers. Of 30 sellers, there are 10 ”high-cost” sellers with production costs of $25 per unit and 20 ”low-cost” sellers with costs of $5 per unit. Of 30 buyers, there are 15 ”high-value” buyers with values of $30 per unit and 15 ”low-value” buyers with values of $10 per unit.a.) Identify the demand schedule for this market.b.) Identify the supply schedule for this market.c.) Graph the demand and supply schedules for this...
Market equilibrium occurs when the amount of people that are willing to buy equals the amount...
Market equilibrium occurs when the amount of people that are willing to buy equals the amount of people that are willing to sell. A steadfast tenant in economics. As students here at Post let’s surmise that right now Post is at market equilibrium. We have enough Instructors to match the number of students. However, two scenarios occur; first, student enrollment falls, so Post decides it must now raise tuition. Not good…. Or, enrollment increases! And Post decides to, you guessed...
​D(x) is the​ price, in dollars per​ unit, that consumers are willing to pay for x...
​D(x) is the​ price, in dollars per​ unit, that consumers are willing to pay for x units of an​ item, and​ S(x) is the​ price, in dollars per​ unit, that producers are willing to accept for x units. Find ​(a​) the equilibrium​ point, ​(b​) the consumer surplus at the equilibrium​ point, and ​(c​) the producer surplus at the equilibrium point. ​D(x)=(x-8)^2​, ​S(x)=x^2+4x+24
​D(x) is the​ price, in dollars per​ unit, that consumers are willing to pay for x...
​D(x) is the​ price, in dollars per​ unit, that consumers are willing to pay for x units of an​ item, and​ S(x) is the​ price, in dollars per​ unit, that producers are willing to accept for x units. Find ​(a​) the equilibrium​ point, ​(b​) the consumer surplus at the equilibrium​ point, and ​(c​) the producer surplus at the equilibrium point. D(x)=(x-5)^2 S(x)=x^2+4x+11
D(x) is the price, in dollars per unit, that consumers are willing to pay for x...
D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point. D(x)=-5/6x+11,S(x)=1/3x+4
Assume the following (1) selling price per unit = $30.
Assume the following (1) selling price per unit = $30. (2) variable expense per unit = $18, and (3) total fixed expenses = $33,900. Given these three assumptions, the unit sales needed to break-even is: Multiple Choice 36,400 units. 5,325 units 35,325 units. 2,825 units Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $300,000 120,000 180,000 111,000 $ 69,000 Per Unit $ 40 16 $24 If the variable expenses increase by $1 per unit, the advertising expenditures...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT