Question: The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $29, $20,

The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $29, $20, $16, and $12. Five buyers are willing to buy one widget at the following prices: $10, $12, $20, $24, and $29. What is the equilibrium price and quantity in this market?

Step by Step Solution

★★★★★

3.42 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Equilibrium Price 20 an... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

90-B-E-M-E (339).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

The file named Qb2013.xlsx gives NFL quarterback (QB) statistics for the 2013 season. Write formulas in cells J2 and K2 that return the QBs TDs and interceptions when you type a QBs name in cell I2....

Identify what happens to equilibrium price and quantity in each of the following cases: a) Demand rises and supply is constant b) Demand falls and supply is constant c) Supply rises and demand is...

The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $42, $32, $26, $20, and $12 (one seller at each price). Five...

Algebraically solve for the after-tax equilibrium price and quantity in the corn market if the government collects a specific tax of t = $2.40 from customers, as panel b of Figure 3.6 illustrates.

What is the difference between economies of scale and economies of scope? Suppose Nike's managers were considering expanding into producing sports beverages. Why might the company decide to do this...

Suppose you have a production technology that can be characterized by a learning curve.Every time you increase production by one unit, your costs decrease by $6.The first unit costs you $64 to...

.The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $20,000), and, after setting up, you can produce 1,000 units of a particular...

1.Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your marginal cost decreases by $6. There are no fixed costs,...

8. Compounding and Discounting Northrop Grumman is looking to invest in costcutting projects. One project requires an initial investment of $617. Assume a cost of capital equal to 13%. The project's...

The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $52, $40, $30, $26, and $16 (one seller at each price]. Hve...

Persimmon has $75,000 capital and Hawk has $45,000 capital in the Persimmon & Hawk partnership. Persimmon and Hawk share profits and losses equally. Judy Pound invests cash of $40,000 to acquire a...

Technical data provided with a room dehumidifier explain that units tested from the production line consume a mean of 800 watts of power, with a standard deviation of 12 watts. The superintendent of...

A compary or ganizing an outdoor evert purchases cancellation insurance Astart - up partners with a larger company to portion the financial risks and rewards of developing a new product. A project...

Refer to Exercises 2 and 12. a. What conclusion would you make at the = 0.01 level? b. Would your conclusion from part (a) change if a 5% significance level was used instead? Explain your reasoning....

The model for a specific linearized TCP/IP computer network queue, working under a random early detection (RED) algorithm, has been modeled using the block diagram of Figure P11.1, where G(s) =...

Consider the mechanical system of Figure P3.12. If the spring is nonlinear, and the force, F s , required to stretch the spring is F s = 2x 2 1 , represent the systemin state space linearized about x...

The data in ECONMATH contain grade point averages and standardized test scores, along with performance in an introductory economics course, for students at a large public university. The variable to...

What effects do credit market imperfections have on the interest rates faced by lenders and borrowers?

Due to evaporation d uring production, Plasto Company requires 4 pounds of material input for every 3 pounds of good plastic sheets manufactured. During May, the company produced 6,000 pounds of good...

Explain why automobile manufacturers produce their own engines but purchase mirrors from independent suppliers.

Identify the type of specialized investment that each of the following situations requires. a. You hire an employee to operate a machine that only your company uses. b. An aerosol canning company...

Describe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $125,000. When this same manager is...

Divide each ledger account by total assets to get a percentage of total assets. Do this for both balance sheets. XR Common See Balance Sheets (1) - Microsoft Excel - X Cut Wap Test Copy Calibri AA...

In 2019, students in an advanced Statistics course at UC Berkeley conducted an anonymous survey about use of cognition-enhancing drugs among college males. One survey group of males included members...

. 3. The managers at Jackson-Presley also believe that they are significantly undervalued, and want you to estimate how much the equity in the firm is truly worth. They provide you with the following...