5. Suppose that the market supply and demand for a nitrogen fertilizer are respectivelyexpressed as follows:Qs 4P; QD = 10-P where Qs, Qu, and P are the quantity supplied, the quantitydemanded, and the price of the fertilizer respectively.a. Find the market clearing price and quantity P* and Q*. (2 points)Qs=Qd 4P=10-P 5P-10 P=2Qs=8 Qd=8b. Draw to scale the demand and supply schedules and show on your graph the arearepresenting the consumer surplus and the producer surplus. (4 points)

Part (a): Finding the Market Clearing Price (P*) and Quantity (Q*)Understanding Equilibrium: In…

Answered: 5. Suppose that the market supply and…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 23QP

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Suppose that the demand and supply schedules for raisins in South Carolina are as fallows, quantitiesare measured in millions of packs per month. What is the quantity of raisins bought if the price is 50cents ? Price (cents per pack) Quantity demanded20 18030 16040 14050 12060 10070 8080 60 a) 120b) 180c) 100
1. Suppose the demand for and supply of one-bedroom housing units in Nairobi’s Westlands area can be represented by the following linear functions:Qd =18,200–40P and Qs =–2,200+20PWhere Qd, Qs = Number of housing units in thousands, P = Price in US dollars.a) Determine the market equilibrium price and quantity b) Suppose the government decides to subsidize the cost of construction one-bedroom houses in the area at US$20.00 per housing unit. Determine the equilibrium outcome after the subsidy, and show how the benefit is shared between tenants and landlords. How much will the subsidy costthe government?c) Graphically show your results using well labeled demand and supply curves
A gift shop sels ceramic figurines for $80 and crystal vases for $100. At these prices, the gift shop sells 12 ceramic figurines and 8 orystal vases p quantity demanded of ceramin figurines and crystal vases will increase to 18 units and 12 units per day, respectively. If the gift shop wants to increase revenue, which of the following actions should be taken? OA Increase the price of both ceramin figurines and crystal vases OB. Decrease the price of both ceramic figurines and crystal vases. OC. Increase the price of ceramic figurines and decrease the price of crystal vases. OD. Decrease the price of ceramic figurines and increase the price of crystal vases day. If the price of ceramic figurines fals to $64 and the price of crystal vases fails to $25, the
6. Suppose the market demand curve for cranberries is given by the equationQd = 500 - 4P, while the market supply curve for cranberries (when P ≥ 50) isdescribed by the equation Qs = -100 + 2P, where P is the price of cranberriesexpressed in dollars per barrel, and quantity (Qd or Qs) is in thousands ofbarrels per year. At what price and quantity is the market for cranberries inequilibrium? Show this equilibrium graphically.
3) The following figure shows the demand and supply curves for USB flash drives. D is the demand curve and S1 is the initial supply curve. Price (S) O 10 Quantity (units) 20 40 60 Refer to the figure above and answer the questions: a) When the demand curve for flash drives is D and the supply curve of flash drives is S1, the equilibrium price is with an equilibrium quantity ofunits. If the supply curve for flash drives shifts from S1 to S2, with no change in the demand curve, the new competitive equilibrium price is with a new equilibrium quantity of units. b) When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the surplus in the market if the price is $7? O When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the shortage in the market if the price is $4?
1. Suppose that a small, tropical country produces mangoes for domestic consumption and possibly for export. The national demand and supply curves for mangoes in this country are given by the following: P = 50 - M P = 25 + M (national demand) (national supply) where P denotes the relative price of mangoes and M denotes the quantity of mangoes (in metric tons). (a) Illustrate these relationships geometrically. What is the autarky price and quantity (b) exchanged? (c) Suppose that the world price of mangoes is 45. Will this small country export mangoes? If so, how many tons?
2. Assume that the supply of imported macadamia nuts is perfectly inelastic at a quantity or 100 lbs/day. The domestic supply curve (lbs/day) of macadamia nuts is 200 p where p is the price of nuts in $/lbs. (a) Draw the supply curves for imported, domestic, and total (aggregate) supply of nuts. Clearly label each supply curve. Indicate the total (aggregate) market quantity at $0.50 and $1.00. Price 1.00 50 300 400 Quanty 100 200 (b) Now FreedomIsNuts, a U.S. nut producer group, convinces congress to ban imported macadamia nuts. Does the elasticity of total supply get larger, smaller, or stay the same? Explain.
consider the world market for a particular quality of coffee beans the following table shows the demand and supply schedule for this market
Q44
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.
Price (dollars per pizza) 12 13 14 15 16 17 18 19 20 Quantity demanded (millions per week) 28 27 26 25 24 23 22 21 20 Quantity supplied (millions per week) 22222222 20 21 23 25 26 27 28 The table shows the supply and demand schedules for pizza. At a price of 13 dollars per pizza, there is a 111 of pizza and so the price will (2)
← 1 Suppose the supply for a certain textbook is given by p=- (a) How many books are demanded at a price of $20? (b) How many books are supplied at a price of $20? (c) Graph the supply and demand functions on the same axes. (a) How can the number of books demanded be found? and demand is given by p=- -79² +30, where p is the price and q is the quantity. 1 29 OA. Substitute the price for q in the demand equation. B. Substitute the price for p in the demand equation. OC. Solve each equation for q and set the resulting expressions equal to each other. OD. Set the two expressions for p equal to each other. The number of books that are demanded at a price of $20 is. (Round to the nearest whole number as needed.) iew an example Get more help. Clear a

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