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In: Economics

Suppose the market supply for Good X is given by QXS = -100 + 5PX. Compute...

  1. Suppose the market supply for Good X is given by QXS = -100 + 5PX. Compute and illustrate with completely labeled diagram the producer surplus if the equilibrium price of X is $100 per unit (show the relevant calculation).
  2. The daily market demand and supply for chicken in Kuala Lumpur is given by:   

Qd= 16,000 – 1,000P

Qs=   2,000 + 1,000P

The quantity and price are measured in tonnes and RM, respectively.

  1. Determine the equilibrium quantity and price in the above market,
  2. Explain what will happen if the government imposes a price ceiling of RM10 on the chicken.

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
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