Show workings and graphs

Section 3 Applications 1. What is the equilibrium price and quantity for each of the following pairs of demand and supply curves: a. Demand p=1003g Supply g =30 | 5marks] b. Demand p =100 Supply p= 20+4q [5 marks] 2. Suppose you are given the following information: OF = 200+ 3P Oo" =400-P where Q* is the quantity supplied, Q* is the quantity demanded and P is price. a. From this information compute equilibrium price and quantity. 6 marks b. Now suppose that a tax is placed on buyers so that O* = 400 (2P + T) where T is taxes. If T= 20, solve for the new equilibrium price and quantity. (HINT: Note: You are solving for the equilibrium price for sellers and buyers and the equilibrium quantity). 10 marks a In response to lobbying by the skateboard manufacturers, the government places a price floor of $700 on skate boards. Use the following supply and demand schedules for skateboards in Table 5.1 to answer the questions below. "Pace a Quantity Demanded Quantity oe ee