What is the scope of industrial economics? Also discuss its importance.

What role industrial economics plays in economic development of a country?

(a) At what price and output level the market will be in equilibrium?

Q^d = 100 - 6P

Q^s = 28 + 3P

Where Q^d is quantity demanded, Q^s is quantity supplied while P is the price of good.

Define Consumer Surplus and Producer Surplus? Use neat diagrams to explain Consumer and Producer Surplus?

Define the Law of Supply? Keeping in view the Law of Supply, how the following factors will shift the supply curve? (Each answer must be supported by a neat diagram):

If number of producers increases in the market;

If there is an advancement in electronics technology;

If the prices of raw material increases in automotive industry;

If there is an expectation of increase in oil prices during next month.

 

The demand function for Product X is Qd = 100 - 2P and its supply function is Qs = -20 + P where P is the price of Product X in dollars while Qd is the quantity demanded and Qs is the quantity supplied (both expressed in thousands of units). Part 1 What are the equilibrium price and quantity? (3 points) What is the consumer surplus in the market for Product X? (2 points) What is the producer surplus in the market for Product X? (2 points) . What is the total surplus in the market for Product X? (1 point) Part 2 Assume that the government decide to impose a tax of $6 on the price of each Product X that consumers purchase. What are the new equilibrium price and quantity? (2 points) What is the new consumer surplus in the market for Product X? (2 points) What is the new producer surplus in the market for Product X? (2 points) What is the new total surplus in the market for Product X? (1 point) Is the new market equilibrium efficient? Why? Why not? (5 points)