Question: 1. Assume demand is equal to supply where: Demand Function: 20,000 - 40P Supply Function: 4,000 + 60P What is the equilibrium price? 2. Based

1. Assume demand is equal to supply where:

Demand Function: 20,000 - 40P

Supply Function: 4,000 + 60P

What is the equilibrium price?

2. Based on question No. 1, prove that your computed P* is correct by determining the equilibrium quantity (Q*)

What is your Q*?

3. Based on No. 1 assumption that Qd = Qs, if the prevailing price in the market is 100, how many units arequantity demanded?

4. Based on No. 1 assumption, if the prevailing price in the market is 100, how many units arequantity supplied?

5. What is the market condition if Qd is greater than (>)Qs?

6. Based on the assumption of question No. 1, if the prevailing price in the market is 200, how many units are quantity demanded?

7. Using the assumption in question No. 1, if the prevailing price in the market is 200, how many units are quantity supplied?

8. What is the market condition if Qd is lesser than (<) Qs?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Learning Objectives 3-1 By the end of this section, you will be able to: Explain demand, quantity demanded, and the law of demand Identify a demand curve and a supply curve Explain supply, quantity...

Q:

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

Q:

Economics: Elasticity Explain shortly. Please do correctly and take your time. There is a written question at the bottom. There are total thirty one MC and one written. 1. What is the effect on total...

Q:

PROBLEMS 1. The following function describes the demand condition for a company that makes caps featuring names of college and professional teams in a variety of sports. Q = 2,000 - 100P where Q is...

Q:

M Question 1 - Unit 3 Lab Quiz - X C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.co... Update : Unit 3 Lab Quiz i Saved p Save &...

Q:

Please read this below and if you are up for the challenge please firstly summarize it, secondly and seperately explain how it relates too macroeconomic issues such as the business cycle, growth and...

Q:

Effects of the liberalization of international trade for an importable product. 1. Initial equilibrium without imports : the equilibrium price is USD 50 thousands per ton and equilibrium quantity is...

Q:

Refer to the project charter from Chapter 3, WBS in Chapter 7, and the project schedule in Chapter 8. The initial scope as identified in the project charter is mentioned below: Building a...

Q:

QUESTION 1 Consider the following demand and supply equations Qd(P) = 2350 - 22P Qs(P) = - 125+11P What is the equilibrium price? 75 QUESTION 2 Using the demand and supply function from the first...

Q:

Question one : consumer choice a. Dave has a budget of $180 a week to spend on food. He likes meat (x) which costs $10 a unit, and potatoes (y) which cost $4 a unit. Calculate and illustrate his...

Q:

Frank is a sales and marketing manager. He works from home mostly but also has an office at his employers office. His home office is a dedicated room. He works in his office approximately 24 hrs. a...

Q:

What is the total cost of reducing this project by two weeks? Activity Start A B D E F G H I Precedes A, B C, D G E F H H I End End Normal Duration (wk.) 6 4 A 5 6 6 8 5 6 Crashing 1st time 00 5 1 6...

Q:

Sukuk are similar to asset - backed bonds, but instead of a fixed annual interest rates, payouts to investors over the life of the bond are derived from leases, profits or sales of tangible assets...

Q:

The ability to contribute strategically is one of the barriers to strategic human resource management. true false

Q:

Someone in your household complains that you always leave a mess in the bathroom that he or she has to clean up.

Q:

You show up late for an appointment with a colleague. Your co - worker says something negative about this to you, even though he or she frequently keeps you waiting.

Q:

How carefully are you monitoring discussion about your company on the Internet? What is being said about the company?