Market Equilibrium 1. Complete the sentence: The market is in equilibrium when III. The demand function is Q = 5000 10p, and the supply function is Q 2. Determine the equilibrium price and quantity. = 200 + 6p.

Consider a competitive market for apartments in Bandung. What is the effect on the equilibrium price and quantity after the following (ceteris paribus)? In each case, explain your answer using the supply and demand curves. C. government regulations that state apartment rents cannot be higher than $ 200 per mont

Suppose the demand for organic bananas is given by the following equation: Qd = 10 - 1P where Qd is the quantity demanded per week of organic bananas, and P is the price of organic bananas. Suppose further that the supply of organic bananas is: Qs = 3 + 2P where Qs is the quantity supplied per week of organic bananas. What is the equilibrium market quantity of organic bananas? (Round your answer to 2 decimal places.)

Equilibrium: Where Supply Meets Demand - End of Chapter Problem rise and the equilibrium price will a. If the supply of green tea rises, the equilibrium quantity will is because the equilibrium quantity moves down the demand curve to a lower price and a higher quantity demanded b. Shift the appropriate curve or curves below to show the effect of this change. Market for Green Tea S fall . This

Consider each of the scenarios before, and explain what the effect of the given changes would be on the market for the good in bold that was originally in equilibrium. State which curve(s) shift (supply, demand, both, neither), and whether price and quantity are higher or lower after the change, or if this is not possible to determine. (a) An increase in the cost of dorm rooms on the market for apartments in the U-district? (b) The government increases the consumption tax rate for consumersp by 5% on the market for Rolex watches? (c) The increase in price of milk on cakes? Note: The solution should not be hand written.

II. What will happen to Demand(D), Supply(S), new Equilibrium Price(P*), and new Equilibrium Quantity(Q*) when the market condition changes as the following. Explain the reason and draw relevant graphs supporting your analysis.   A. Market: Plywood in Florida Event: The Hurricane Center increases the probability of Hurricane to make a landfall in Florida   B. Market: Bauxite Event: GM is able to increase the mph of its vehicles by using more aluminum in cars and so plans to use more aluminum. Bauxite is a resource in producing aluminum.   C. Market: Skateboards Event: The price of fiberglass rises (Fiberglass is a substance used for making skateboards)   D. Market: Hamburger Event: 1. A new processing technology lowers the production cost of hamburger patties AND, simultaneously, Event: 2. The Surgeon General advocates eating only 2 ounces of red meat per day for health concerns   E. Market: Chicken Event 1. Avian flu spreads fast hurting chicken producers AND, simultaneously, Event 2.…

What will happen to Demand(D), Supply(S), new Equilibrium Price(P*), and new Equilibrium Quantity(Q*) when the market condition changes as the following. Explain the reason and draw relevant graphs supporting your analysis.   A. Market: Plywood in Florida Event: The Hurricane Center increases the probability of Hurricane to make a landfall in Florida   B. Market: Skateboards Event: The price of fiberglass rises (Fiberglass is a substance used for making skateboards)   C. Market: Chicken Event 1. Avian flu spreads fast hurting chicken producers AND, simultaneously, Event 2. Beef prices fall a lot, making beef more affordable to consumers (Chicken and beef are substitutes)

Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good? Answer A)Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. B)Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. C)Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. D)Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

1. What is the equilibrium price? What is the equilibrium quantity? Suppose P_c goes up to 14. New equilibrium price?  New equilibrium quantity?

If E were the old equilibrium in the market for wheat in the figure below, and E' the new one, which of the following could have caused the change? E' (E D' D2 Consumer income rose, causing a supply shift. Bad weather caused a supply shift. Supply and demand both shifted. Consumer income rose, causing a demand shift. All of the above are plausible descriptions. а. b. c. d. e.