1) Given the below functions for supply and demand: Supply: P= In (Q³ - 2) Demand: P = 18e-arctan (QD) a) Find the total welfare using the market equilibrium condition (to find the equilibrium point you need to use Newton's method at some point): b) Find the equilibrium price using the welfare optimization method directly; verify whether the results from part A & B are consistence.
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- For each of the determinants of demand in Equation 2.1, identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. Then do the same for each of the determinants of supply in Equation 2.2. In each instance, would equilibrium market price increase or decrease? Consider substitutes such as plug-in hybrids, the Nissan Leaf and Chevy Volt, and complements such as gasoline and lithium ion laptop computer batteries.(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?1) Given the below functions for supply and demand: Supply: P = In (Q – 3) Demand: P = 22e¬arctan (Qp) Find the equilibrium price using the welfare optimization method directly.
- Q = a + bP + cM In the demand function above, Q is quantity demanded, P is the price of this good, and M is consumer income. The parameter, b, is the effect on Q of change in P: b ΔQ /ΔΡ Using this relationship for b, find an expression for the price elasticity of demand (E). Select one: O a. E = b(Q/P) O b. E = b(P/Q) %3D O c. E = b(AQ /AP) %3D O d. E = b + (P/Q)Due to a recession that lowered incomes, the 2008 market prices for last-minute rentals of U.S. beachfront properties were lower than usual. Suppose that the inverse demand function for renting a beachfront property in Ocean City, New Jersey, during the first week of August is Derive the equilibrium price, p, and the quantity, Q", in terms of Y. The equilibrium quantity, Q', ist p=1000-Q+= Y where Y is the median annual income of the people involved in this market, Q is quantity, and p is the rental price. The inverse supply function is Q Y 50 p= Q² = 10In the following question(s) you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X. Refer to the above. An increase in the price of a product that is a close substitute for X will: Group of answer choices a. decrease D, increase P, and decrease Q. b. increase D, increase P, and decrease Q. c. increase D, increase P, and increase Q. d. increase D, decrease P, and increase Q.
- The quantity demanded of Fitbit devices is 8,025 units when the price is $260. At a unit price of $200, demand increases to 10,000 units. The manufacturer will not market any of the device at a price of $100 or less. However for each $50 increase in price above $100, the manufacturer will market an additional 1,000 units. Assume that both the supply equation and the demand equation are linear. a) Find the supply equation. b) Find the demand equation. c) Find the equilibrium quantity. d) Find the equilibrium price.The demand function of a good is given by p(Qd ) = 160 – Qd and the supply function by Qs = 150. a) Calculate the equilibrium price. Represent graphically. b) If supply changes to Qs = 120: What would be the new equilibrium price? Represent graphically. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.For a demand function Qd = f (P), a change in price causes a change in the quantity demanded. There are other five (5) variables, enumerate and explain each variable influencing demand in the general demand function. These are fixed at specific values for a given demand equation.
- suppose the demand and supply functions for an item are givem by QX = 50-2P and QX= 10+3P a, represent the above function graphically b, find the equilibrium price and quantityA certain manufacturer has determined that the weekly demand and supply functions for their product are given by the equations: supply: p=-2x² +80 demand: p = 15x+30 where z represents the quantity demanded in units of a thousand and p is the unit price in dollars. Find the market equilibrium (equilibrium price and equilibrium quantity).In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X A decrease in the price of a product that is a complement to X will increase D, increase P, increase Q increase D, decrease P, increase Q increase D, increase P, decrease Q decrease D, decrease P, increase Q shift D left with no change in P and Q