EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1.4P
A
To determine
To describe: The reasons for the possible values for P being restricted.
B
To determine
Put on a graph the given two equations, and calculate the
C
To determine
Put on a graph the given two equations, and calculate the equilibrium price and the quantity.
D
To determine
Compare and contrast the answers derived in parts a and b and arrive at a conclusion.
E
To determine
State reasons for preferring graph in part a to that of in part b.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
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.
Suppose the demand for bicycles is given byQp = 10,000P- and the supply of bicycles is
given by Qs = 0.01P3.
(a) Using calculus and the given supply and demand curves, find mathematical expressions
for the elasticities of demand and supply as a function of the price. Use these expressions
to demonstrate that both curves have constant elasticity along their entire length.
(b) Find the equilibrium price and quantity in this market mathematically.
The number of retro portable CD players you are prepared to supply to a retail outlet every week is given by the formula
q = 0.2p? + 5p,
where p is the price it offers you. The retail outlet is currently offering you $90 per CD player. If the price it offers
decreases at a rate of $1 per week, how will this affect the number you supply?
The supply will --Select-- v
at a rate of
CD players per week.
Chapter 1 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 1.2 - Prob. 1MQCh. 1.2 - Prob. 2MQCh. 1.3 - Prob. 1TTACh. 1.3 - Prob. 2TTACh. 1.4 - Prob. 1TTACh. 1.4 - Prob. 2TTACh. 1.4 - Prob. 1MQCh. 1.4 - Prob. 2MQCh. 1.4 - Prob. 1.1MQCh. 1.4 - Prob. 1.2MQ
Ch. 1.5 - Prob. 1TTACh. 1.5 - Prob. 2TTACh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Prob. 10RQCh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Prob. 1.5PCh. 1 - Prob. 1.6PCh. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10P
Knowledge Booster
Similar questions
- A particular commodity has a price-demand equation given by p = √18,444 - 417x, where x is the amount in pounds of the commodity demanded when the price is p dollars per pound. (a) Find consumers' surplus if the equilibrium quantity is 40 pounds. (Round your answer to the nearest cent if necessary.) (b) Find consumers' surplus if the equilibrium price is 17 dollars. (Round your answer to the nearest cent if necessary.) $arrow_forwardThe quantity demanded for the Sony VCR model 37 is 2500 per week when the unit price is $700. For each increase in unit price of $50, the quantity demanded decreases by 250 units. The suppliers will provide 2500 units when the price is $800 per unit, and they will not supply any units for $500 or less. (Note: Define your variables.) A. Algebraically determine the supply equation. (Place in function form.) B. Algebraically determine the demand equation. (Place in function form.) C. Algebraically determine the equilibrium quantity and price. D. At what price does excess supply occur?arrow_forwardComplete the problem by using the accompanying figure, which shows a supply function and a demand function. (Assume price is measured in dollars.) Р 40 30 20 10 10 20 30 40 50 60 (a) If the price is $12, what quantity is supplied? Units (b) If the price is $12, what quantity is demanded? units (c) Is there a surplus or a shortage when the price is $127 O surplus O shortage How many units is this surplus or shortage? unitsarrow_forward
- Q3. Let D(x) and S(x) represent, respectively, the Demand and Supply functions, for a certain commodity, where y is the unit price and x is the number of items for that unit price. For the given Demand and Supply functions. Demand: D(x) = y = -2x +100 Supply: S(x) = y = x² + 4x – 60 a) Find the equilibrium quantity (if it exists) [Spts] b) Find the equilibrium price. [5pts] c) For which values of x, market has shortage. [5pts] d) For which values of x, market has surplus. [5pts] e) Draw the graphs of demand and supply functions on the same coordinate systems. [5pts]arrow_forwardSuppose that the market demand curve for a good is given by D=80-2P-2I, where D is the quantity demanded, P is the price of the good, and I is consumer income in thousands of dollars. The good is a divisible good. The supply curve is given by S = 3P, where S is the quantity supplied. Assume that I = 15. (a) (10 points) How many units of the good are demanded with P = $4? (b) (10 points) Compute the size of a consumer surplus at P = $4. (c) (10 points) Derive the equilibrium price of the good.arrow_forwardI intend to sell food coupons from my restaurant to two groups of customers, namely, general consumers and students, whose demand curves are given by Qg and Q, respectively, Qg=500 -5P Q₁ = 200 - 4P; where Q stands for quantity demanded and P is price. (a) Can you graph the two demand curves with P on the vertical axis and Q on the horizontal axis? If I price the coupons at $35, can you identify the quantity demanded by each group? (b) Also, find the price elasticity of demand for each group at the current price and quantity. (c) Am I maximizing my revenue by charging $35 for each coupon? Explain. (d) What price should I charge from each group if I want to maximize the revenue collected from coupon sales? (e) Normally, sellers try to maximize profits instead of revenue. In this case, explain if maximizing revenue is equivalent to maximizing profitsarrow_forward
- The demand and supply functions for Curling brooms are given by Qd = 286-20P, Qs = 88 + 40P .a. Graph the supply and the demand curves, clearly showing the intercepts and indicating the slopes of the two curves. b. Determine the equilibrium price and quantity of Curling brooms. c. Suppose that both the men's and the women's teams win Olympic gold medals, causing an increase in the demand for Curling brooms across the country to Qd = 328-20P. What impact does this have on the price of Curling brooms and the quantity sold? Add this new demand curve and the resulting equilibrium to your graph.arrow_forwardLet's say that the demand side of the market for Blue Soda is comprised of 3 leading agents/individuals: Anthony, Brad, and Claire. Let P be the price of 1 liter of Blue Soda, and Qd be the quantity demanded of Blue Soda in liters. Here are the key points to the problem: - Anthony buys only one liter of Blue Soda if the price of it falls below his choke price of $10. - Brad's demand for Blue Soda is defined by QdB = 5 - P/2 - Claire buys 2 liters if the price is below $5, 1 liter if the price is between $5 and $10, and nothing if the price is above $10. Using this information, please sketch the individual demands and the market demand by aggregating the three agents/individuals. Label the graph clearly. Please make sure to sketch the individual demands first and then sketch the market demand.arrow_forwardSuppose the demand curve for a product is given by the equation P = 13 – 0.5Q. Which of the following statements is accurate? Group of answer choices a) If the price is $8, the quantity demanded is 9 units. b) The maximum willingness to pay for the 8th unit is $5. c) If the price is $6, the quantity demanded is 7 units. d) The maximum willingness to pay for the 8th unit is $9. e) The maximum willingness to pay for the 10th unit is $3.arrow_forward
- Suppose that the demand for a product is given by the following demand function; Q = 500 - 3P. If you set price at dollar 100 per unit how many unit will you sell?arrow_forwardThe demand and supply functions for a particular commodity are D(x) = 80e-0.001x and S(x)= 30e0.001r , where x is the number of units of the product, D(x) is the price that results in a consumer demand of x units and S(x) is the price that results in a producer supply of x units. a. Find the equilibrium point using your calculator and identify the equilibrium units and price. Give your answers to the nearest whole unit and nearest dollar. The value of x at equilibrium is units. The value of p at equilibrium is b. Determine the consumers' surplus.arrow_forwardSuppose that the market supply of baseball caps in the local area is given by the following equation: Qs = 362 + 3P where Qs is the quantity baseball caps per month that sellers in the local area would be willing to provide at a price of P dollars. What is the quantity supplied at a price of 14 dollars?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education