Iln Smalltown, Pennsylvania the demand function for men's haircuts is given by Qd = 500 – 30p + 0.08Y, where Qd is quantity demanded per month, p the price of a haircut and Y the average monthly income in the town. The supply function for men's haircuts is Qs = 100 + 20p – 20w, where Qs is the quantity supplied and w the average hourly wage of barbers. Assume that Y increases to $6,500 and w increases to $12. Use Excel recalculate Qd, Qs, and Excess Demand and answer the following questions. | when P=$10. 2. Find Qs = when P=$20. 3. Find Excess Demand = when P=$10. 4. The equilibrium price (or 1. Find Qd = %3D rounding to the nearest whole number) is $ and the equilibrium quantity is --- units.

Iln Smalltown, Pennsylvania the demand function for men's haircuts is given by Qd = 500 – 30p + 0.08Y, where Qd is quantity demanded per month, p the price of a haircut and Y the average monthly income in the town. The supply function for men's haircuts is Qs = 100 + 20p – 20w, where Qs is the quantity supplied and w the average hourly wage of barbers. Assume that Y increases to $6,500 and w increases to $12. Use Excel recalculate Qd, Qs, and Excess Demand and answer the following questions. | when P=$10. 2. Find Qs = when P=$20. 3. Find Excess Demand = when P=$10. 4. The equilibrium price (or 1. Find Qd = %3D rounding to the nearest whole number) is $ and the equilibrium quantity is --- units.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter18: Pricing The Factors Of Production

Section: Chapter Questions

Problem 4TY

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