Consider the following US reduced supply and demand equations for commodity X: QdX = 400 – 2Px and QsX = - 100 + 3Px A.

What are (1) the equilibrium price per unit of product;

(2) Quantity of this product sold at this price;

and (3) what were the revenue for the producers?

B. If this product can now be export to a make-believe country and the estimated reduced demand equation for this product in this make-believe country is : Qd MB = 400 – Px What was the new equilibrium price and quantity of this product? Illustrate the old and new equilibria in one diagram C. At the new equilibrium price (1) how many units of this product X are produced?

(2) How many units were consumed by the US consumers?

(3) what were the revenues of the producers

Answer rating: 100% (QA)

To find the equilibrium price and quantity for commodity X in the US market we need to set the quant... View the full answer