Q4. 4.1. Please draw supply and demand in perfectly competitive market and show the equilibrium 4.2....

Q4.

4.1. Please draw supply and demand in perfectly competitive market and show the equilibrium

4.2. Please draw an individual firm’s demand and supply curve in perfectly competitive market

4.3. Show the impact of new technology such as fracking in your graphs in 4.1. at the market level and

4.2. at the individual firm level. Explain what happen to the price at the market level and costs at individual firm level.

Expert Solution

Rahul Sunny answered 1 year ago

2. A perfectly competitive market where the laws of demand and supply hold is in equilibrium....

2. A perfectly competitive market where the laws of demand and supply hold is in equilibrium. Answer the following questions. a) Assume that more sellers enter this market. The price elasticity of demand is observed to be εQd,P = 3/2. What happens to the total expenditures incurred by consumers? Explain and illustrate the change occurring in those expenditures on a graph. 2 b) Suppose now that production costs increase in this market. The price elasticity of demand is still estimated...

Given a scenario, draw a supply/demand graph, beginning with a market in equilibrium, and show the...

Given a scenario, draw a supply/demand graph, beginning with a market in equilibrium, and show the effect of changes in both a determinant of supply and a determinant of demand.

2) 1. A) Draw demand and supply curves for the market for milk. Show the equilibrium...

2) 1. A) Draw demand and supply curves for the market for milk. Show the equilibrium price and quantity combination (where the curves intersect). B) Graphically illustrate and explain the impact of a government law that sets the price of milk above the price given by the intersection of the curves. Be sure to identify the groups that are helped by the law and those that are hurt. Explain how the law impacts these groups. C) Explain the unintended consequences...

Draw a supply and demand diagram with a perfectly elastic Supply. a- Determine the equilibrium price...

Draw a supply and demand diagram with a perfectly elastic Supply. a- Determine the equilibrium price and quantity on your graph. Label the relevant area of the graph with letters and determine consumer surplus, producer surplus and total surplus of the market at the equilibrium. b- Show that any deviation from the equilibrium results in a decrease in total surplus. c- Show the change in consumers, producers, and total surplus of the market as a result of an upward shift...

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...

a. Draw a perfectly competitive firm's labor demand curve and labor supply curve. Label the market...

a. Draw a perfectly competitive firm's labor demand curve and labor supply curve. Label the market equilibrium wage rate and quantity of labor the firm will hire. Label your graph completely. b.Draw the demand and supply curves for labor in a perfectly competitive labor market. Label the equilibrium wage rate and equilibrium quantity of labor. Label your graph completely.

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand falls. By the...

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand falls. By the time all adjustments have been made, price will be __________ its original level if the industry is a(n) __________ costs industry. a. above; decreasing b. at; constant c. at; increasing d. below; increasing e. a and d

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?

Draw a diagram to show the long run equilibrium condtion of the perfectly competitive firm

Question