Question: Suppose demand and supply are given by Qd = 50 P and Qs = P 10. a. What are the equilibrium quantity

Suppose demand and supply are given by Qd = 50 – P and Qs = ½ P – 10.
a. What are the equilibrium quantity and price in this market?
b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in this market.
c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in this market. Also, determine the full economic price paid by consumers.

Step by Step Solution

★★★★★

3.50 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Equating quantity supplied and quantity demanded yields the equation Solving for P yields the equi... 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)

64-B-E-M-E (28).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Suppose demand and supply are given by Qd = 60 - P and Qs = P - 20. a. What are the equilibrium quantity and price in this market? b. Determine the quantity demanded, the quantity supplied, and the...

Suppose demand and supply are given by a. Determine the equilibrium price and quantity. Show the equilibrium graphically.b. Suppose a $6 excise tax is imposed on the good. Determine the new...

Suppose demand and supply are given by a. Determine the equilibrium price and quantity. Show the equilibrium graphically. b. Suppose a $ 12 excise tax is imposed on the good. Determine the new...

Suppose demand and supply are given by Qd 50 P and Qs 05P 10 a What are the equilibrium quantity and price in this market Equilibrium quantity 40 Numeric Response 1Edit Unavailable 40 incorrect...

Suppose demand and supply are given by Qd = 50 - P and Qs = .5P - 10. a. What are the equilibrium quantity and price in this market? Equilibrium quantity: Equilibrium price: $ b. Determine the...

Suppose demand and supply are given by Q ^ d = 5 0 - P and Q ^ s = 0 . 5 P - 1 0 . a . What are the equilibrium quantity and price in this market? b . Determine the quantity demanded, the quantity...

Suppose demand and supply are given by Qd = 5 0 P and Qs = 1 . 0 P 1 0 . Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $ 4 5 is imposed...

Suppose demand and supply are given by Qd = 40 - P and Qs = 1.0P - 10 a. What are the equilibrium quantity and price in this market? Equilibrium quantity: Equilibrium price: b. Determine the quantity...

6. Suppose demand and supply are given by Qd 50 P and Qs P 10. a. What are the equilibrium quantity and price in this market? b. Determine the quantity demanded, the quantity supplied, and the...

Suppose demand and supply are given by Q d = 60 P and Q s = 1.0 P 20. a. What are the equilibrium quantity and price in this market? Equilibrium quantity: Equilibrium price: $ b. Determine the...

A mechanism is given as figure below. What is the value of slider velocity d-dot (in mm/s)? Link 2 = 7 mm Link 3 = 25 mm Offset = 10 mm Input angle, theta2 = 20 degree Coupler angle, theta3 = 197.7...

Samsung Galaxy Tab A8 Storage 32GB Android Tablet with 8 Core processor (Colour Grey) CANADIAN Regular Product Price: $ 329.99 Organization (replace these with actual names if known) Cost ($)...

Oriole Corporation decided at the beginning of 2 0 2 3 to change from the declining - balance method of depreciating its capital assets to the straight - line method because the straight - line...

Delgado Advertising Agency was founded by Maria Delgado in January of 2013. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2014. Instructions (a) Journalize...

After being in business for six years, Graham Mason, owner of a small retail store, is considering buying a new information system that would provide him with better operating and financial...

Helen Wiseman, owner of a convenience store, is meeting her banker and hopes to increase her working capital loan. She figures that an additional loan would increase her finance costs by an extra...

Libra Company is purchasing 100% of the outstanding stock of Genall Company for $700,000. Genall has the following balance sheet on the date of acquisition: Appraisals indicate that the following...

Fauquier Resources Inc.s current revenue is $20 million, and the sales and marketing department expects that it will reach $30 million by next year. At the moment, trade receivables are $3.5 million;...

Solve Problems 4346 using augmented matrix methods. Graph each solution set. Discuss the differences between the graph of an equation in the system and the graph of the systems solution set. x - 2x =...

The inverse market demand in a homogeneous- product Cournot duopoly is P = 200 3(Q1 + Q2) and costs are C1(Q1) = 26Q1 and C2( Q2) = 32Q2. a. Determine the reaction function for each firm. b....

The inverse demand for a homogeneous- product Stackelberg duopoly is P 16,000 4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF (QF) = 6,000QF. a....

Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $ 260. The inverse market demand for this product is P=800-4Q. a. Determine the...

The 2014 balance sheet of Jordans Golf Shop, Inc., showed long-term debt of $6.4 million, and the 2015 balance sheet showed long-term debt of $6.8 million. The 2015 income statement showed an...

Problem 5. You are interested in pricing European and American put options on a stock using a four-period binomial model with notation and set-up as in Chapter 10 of the text. So = 20, u = 1.2, d=...

Yield to maturity. What is the yield of each of the following bonds, , if interest ( coupon ) is paid semiannually? a . What is the yield of the following bond if interest ( coupon ) is paid...