Question
Suppose the market demand and supply curves are represented by the following equations: Qd = 100 0.25P Qs = 40 + 0.25P PART A
Suppose the market demand and supply curves are represented by the following equations:
Qd = 100 – 0.25P
Qs = 40 + 0.25P
PART A I already did:
a. Determine the equilibrium price and quantity. (Show your calculations) [2 marks]
Price can be calculated
QD=QS
100- 0.25P = 40+ 0.25P
Rewritten as: 60 = 0.5
Price= 120
Quantity can be calculated:
QD = 100 – 0.25 (120) = 70
B) illustrate these curves on a graph, labelling these curves, intercepts and equilibrum price and quantity
How would I do this?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To illustrate the market demand and supply curves on a graph follow these steps 1 Determine the inte...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Microeconomics
Authors: David Laibson, John List
Global Edition 1st Edition
1292079576, 978-1292079578
Students also viewed these Economics questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App