Consider a market with demand curve given by QD (p) = 110 – p². The market supply curve is given by the equation Qs (p) p. What is the equilibrium price in this market? (hint: prices must be non-negative - round your answer to two decimal places if necessary) =
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- (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?The marginal price for a weekly demand of x bottles of shampoo in a drugstore is given by the function shown below. Find the price-demand equation if the weekly demand is 150 when the price of a bottle of shampoo is $2. What is the weekly demand when the price is $4.50? - 9,000 p'(x) = (3x + 50)? 2 Find the price-demand equation. (Type an equation.)CHAPTER 21. The inverse demand curve for product X is given by:a. PX = 25 - 0.005Q + 0.15PY,where PX represents price in dollars per unit, Q represents rate of sales in poundsper week, and PY represents selling price of another product Y in dollars perunit. The inverse supply curve of product X is given by: PX = 5 + 0.004Q.b. Determine the equilibrium price and sales of X. Let PY = $10.c. Determine whether X and Y are substitutes or complements.2. Suppose the cable TV industry is currently unregulated. However, due to complaintsfrom consumers that the price of cable TV is too high, the legislature is consideringplacing a price ceiling on cable TV below the current equilibrium price. Assuming thegovernment does make this price ceiling law, please construct a diagram that shows theimpact of this law on the cable TV market, and please briefly explain the effects onmarket prices and quantities with supply and demand analysis. Also, if the cable TVcompany is worried about disgruntling…
- If the relationship between supply and demand for a given commodity is lincar such that: 2 3 4 Required quantity(kg) 750 700 650 600 550 500 450 Price Supplied quantity(kg) 300 400 500 600 700 800 900 The equilibrium price in this market is...and the equilibrium quantity is ... If the price of 3 S is set at a maximum of this price in the market, it will suffer from the ... in this market by ... Units. If the price of 5 S is set at a minimum for this price in the market, it will suffer from .. in this market by ...units.Consider the demand function for processed pork in Canada, Qd = = 270.00 - 12p +20p + 3pc +0.002Y The supply function for processed pork in Canada is: Qs p is the price of pork Q is the quantity of pork demanded (measured in millions of kg per year) Solve for the equilibrium price and quantity for pork. The equilibrium price of pork is $ rounded to two decimal places.) = 234.00 + 36p - 60ph Pp is the price of beef = $4 per kg Pc is the price of chicken = $3 per kg Y is the income of consumers = $12,500 Ph is the price of a hog = $1.50 per kg and the equilibrium quantity of pork is million kg per year. (Enter numeric responses using real numbersYour research department estimates that the supply function for high definition televisions (HDTVs)is given byQ = 2,000 + 3 Px − 4 Pt − Pwwhere Px is the price of HDTVs, Pt represents the price of a tablet, and Pw is the price of an inputused to make HDTVs. Suppose HDTVs are sold for $400 per unit, tablets are sold for $250 per unit,and the price of an input is $1,400. How many HDTVs are produced?
- graph the line of demand and the of line of supply showing point of equilibrium of these two equations: Qsupply = 2.5P + 30Qdemand= -20P + 370Solve only when you know correct solution Q)Luka buys smoothies from Tropical Smoothie Cafe. His demand for smoothies is given by Q = 30 - 2P (or P = 15 - 0.5Q), where P is the price of each smoothie and Q is the quantity of smoothies. Tropical Smoothie Cafe prices their smoothies according to the following rule: First smoothie is $20 All additional smoothies are $2 Answer the following questions: A) At these prices how many smoothies will he consume? B)What is Luka's consumer surplus at this quantity?The Unique Gifts catalog lists a "super loud and vibrating alarm clock." Their records indicate the following information on the relation of monthly supply and demand quantities to the price of the clock. Demand Supply Price 166 131 $31 146 181 $43 Use this information to find the following. (a) points on the demand linear equation (x, p) (smaller x-value) (х, р) %3 (larger x-value) points on the supply linear equation (х, р) (smaller x-value) (x, p) = ( ) (larger x-value) (b) the demand equation p = (c) the supply equation p (d) the equilibrium quantity and price Equilibrium occurs when the price of the clock is $ and the quantity is
- At a price of x dollars, the supply function for a music player is q = 75e0.002, where q is in thousands of units. How many music players will be supplied at a price of 300? (Round to the nearest thousand.) thousand units Find the marginal supply Marginal supply(x) = Which is the best interpretation of the derivative? O The rate of change of the price as the quantity supplied increases The quantity supplied if the price increases O The rate of change of the quantity supplied as the price increases O The price at a given supply of units O The number of units that will be demanded at a given priceSupply and Demand-End of Chapter Problem The demand for organic carrots is given by the following equation: 08 = 75 - SPo + Pc + 21 where Po is the price of organic carrots, Pe is the price of conventional carrots, and / is the average consumer income. Notice how this isn't a standard demand curve that just relates the quantity of organic carrots demandod to the price of organic carrots. This demand function also describes how other factors affect demand-namely, the price of another good (conventional carrots) and income. a. Calculate the inverse demand curve for organic carrots when Pc 5 and I 10, then drag the endpoints of the line labeled (a.) on the graph to plot this curve %3D %3DThe demand for lobster is represented as follows, where Qis measured in pounds of lobster: Q, =100 – 75P+91P, – 80P. +25Y where P is the price per pound of lobster, Ps is the price per pound of shrimp, Pc is the price per dozen of corn ears, and Y is income, measured as the median hourly wage of consumers. Suppose that the price of a pound of shrimp is $10, the price of corn is $5 per dozen, and the median hourly wage for customers in this market is $25. Further, suppose that the current equilibrium price for lobster is $13 per pound. Find the equilibrium quantity demanded of lobster in this market. Now determine the following elasticities: price elasticity of demand for lobster; cross-elasticity of demand for lobster relative to shrimp; and income elasticity of demand for lobsters. Is demand for lobsters (relative to the price of shrimp) elastic, inelastic, or unit elastic? Based on the cross-elasticity of demand for shrimp you found, is shrimp a reasonably good substitute for…
