Find the equilibrium Price and output of the following function: 13P-Qs=27 Qd+4P-24=0 Suppose the government imposes flat tax at the rate of 3/per unit, what will happen to its output, also find its new price.
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- Compute for Equilibrium Price and Quantity given: Qd = 245 - 12P P = 0.13Qs - 18.75Price 4 6 8 10 Market demand 40 35 30 25 New market demand - - - - (i) Plot the market demand at each pricelevel on a graph paper and label the demandcurve as DI(ii)Derive the market demand function for good x(iii) Suppose the price of acomplement good has fallen and caused a rise in the demand for good X by 25% at each price level, fill in the new quantity for market demand at each price level fill in the new quantity for market demand at each price level.(iv) Based on part (iii) plot the new demand curve on the same graph as in part (i) and label it as D2ssume a demand equation: Q, = 9 - 0.1p - Pc + 0.01ps + 0.0001Y and a supply equation: Q = 0.1p - 0.02p; + 0.01N + 0.01T - 0.1w where p = price of the good P. = price of a complement = $3 Q = quantity in thousands of units P = price of an input = $450 P= price of a substitute = $200 N= number of firms = 700 Y = consumer income = $20,000 T = index of technology = 300 w = wage rate = $10 If the price is $55, there will be an V of thousand units. O tv 30 MacBook Air DII 80 F10 F11 FB F9 esc FS F6 F7 F2 F3 F4 F1 $ % & 4 6. 8 9 1 P Q W R Y ンビ つ く O
- Consider the following demand and supply relationships in the market forgolf balls: Qd = 90 - 2P - 2T and Qs = -9 + 5P - 2.5R, where T is the price oftitanium, a metal used to make golf clubs, and R is the price of rubber.a. If R = 2 and T = 10, calculate the equilibrium price and quantity of golfballs.b. At the equilibrium values, calculate the price elasticity of demand and theprice elasticity of supply.The short-run demand and supply elasticities for crude oil are -0.076 and 0.088, respectively. The current price per barrel is $30 and the short-run equilibrium quantity is 23.84 million barrels per year. Derive the linear demand and supply What will be the effects on the market price and quantity if the U.S. government decides to purchase (and store away) an additional 2 million barrels of oil? Assume that the additional consumption of oil by the government results in a parallel shift of the supply curve to the left by 2 million barrels per What could be the economic rationale for buying and storing oil?Assume that a retailer sells 1000 six packs of Pepsi per day at at $3./6pk. You, as an economic analysis , estimate that the cross price elastcity between pepsi and coca cola is 0.4. If the retailer raises the price of coca cola by 10%, how would sales of pepsi be affected, ceteris paribus, why
- Consider the following demand and supply function of product ZT: Qd = 25 - 1.25 P Qs = -9 + 3 P Note: Determine the equilibrium point first to answer the following question. 7. How much is the change in the price for the consumer, when additional sales tax is 0.85 per unit? Use a number, 2 decimal values, no commas, no space, no signs. * 8. How much is the buying price when sales tax is imposed? Use a number, 2 decimal values, no commas, no space, no signs. *Consider the following demand and supply relationships in the market forgolf balls: Qd = 90 - 2P - 2T and Qs = -9 + 5P - 2.5R, where T is the price oftitanium, a metal used to make golf clubs, and R is the price of rubber.a. If R = 2 and T = 10, calculate the equilibrium price and quantity of golfballs.b. At the equilibrium values, calculate the price elasticity of demand and theprice elasticity of supply.c. At the equilibrium values, calculate the cross-price elasticity of demand forgolf balls with respect to the price of titanium. What does the sign of this elasticity tell you about whether golf balls and titanium are substitutes orcomplements?When due to change in price of a good, total expenditure on the good remains unchanged, then demand is:-
- Calculate the equilibrium quantity and equillibrum price given:- Demand equation:- P = 100Q-30 Supply equation:- P = 70Q + 90A TV channel has estimated the demand for its service to be givenby the following function: Q=9.83p-1.2A2.5Y1.6P0-1.4whereQ = monthly sales in unitsP = price of the service in $A = promotional expenditure in $’000Y = average income of the market in $’000P0 = price of ‘home movies’ in $ The current price of the TV channel is $60, promotional expenditure is$120,000, average income is $28,000, and the price of ‘homemovies’ is$45.Indicate whether the following statements are true or false, givingyour reasons and making the necessary corrections h. Current sales are over a million units a month. i. The demand curve for the channel is given by:Q=9.83p-1.2j. The channel’s sales are more affected by the price of ‘home movies’ than by the price of its own service.k. If the channel increases its price this will reduce its profit.Solve for Equilibrium Price and Equilibrium Quantity given: P = 107.5-0.25Qd Qs = 3.45P + 295.55