Assume the figure to the right illustrates the market for houses for sale in a small city. 300 Suppose the market price of houses is $225,000. How large will the resulting surplus be? Supply 275 250- At a price of $225,000, there will be surplus houses. (Enter your response as a whole number.) 225 200- What is the equilibrium price of houses? 175- The equilibrium price is $. (Enter your response as a whole number.) e 150- 125- 100- 75- 50- 25- Demand Price ($1000s)

Assume the figure to the right illustrates the market for houses for sale in a small city. 300 Suppose the market price of houses is $225,000. How large will the resulting surplus be? Supply 275 250- At a price of $225,000, there will be surplus houses. (Enter your response as a whole number.) 225 200- What is the equilibrium price of houses? 175- The equilibrium price is $. (Enter your response as a whole number.) e 150- 125- 100- 75- 50- 25- Demand Price ($1000s)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question 1 Given the following demand and supply functions, compare the quantity demanded with the quantity supplied when the price is $10. Is there a shortage or a surplus? Supply: 3p – 79 = 2 Demand: p + 3q = 50
The following diagram shows supply and demand in the market for smartphones. Use the black point (plus symbol) to indicate the equilibrium price and quantity of smartphones. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. PRICE (Dollars per phone) 300 270 240 210 180 150 60 30 0 0 Demand Supply 20 80 100 120 140 160 180 200 40 60 QUANTITY (Millions of phones) Total surplus in this market is $ million. Equilibrium Consumer Surplus Producer Surplus ?
USE TABLE #1: For the market for electric automobiles, the equilibrium price is $ ________________ and the equilibrium quantity is___________ . (Remember to use a comma, if a comma is needed and to include the decimal point and two numbers to the right of the decimal point).
One of the following factors that can best explain why there has been a decline in the equilibrium price and the equilibrium quantity of corn:A) an increase in the demand for corn.B) a decrease in the demand for corn.C) a decrease in the supply of corn.D) an increase in the supply of corn.
Use the following information to answer Questions 1 - 3 In a competitive market for whole milk, the market demand is QD = 1000 – 50P and the market supply is QS = 150P, where Q denotes the quantity in gallons and P denotes the price in dollars. [1] Calculate the competitive market equilibrium price? [2] Calculate the competitive market equilibrium quantity? [3] At the competitive market equilibrium price and quantity, calculate the value for consumer surplus? Hint: it might be helpful to construct a graph.
Qustion 15: Suppose that we are considering the market for a good that is a Giffen Good. We are thinking about a world of Supply and Demand. Very importantly, the demand curve is more inelastic than the supply curve. Suppose that the price of capital increases, and production of the good gets more expensive. What would we expect to happen to the market price and quantity (p* and Q*)? [Hint: this is a supply and demand question, not a question about the cost curves. I would suggest drawing it out.] A. Price will increase. Quantity will increase. B. Price will increase. Quantity will decrease. C. Price will decrease. Quantity will increase. D. Price will decrease. Quantity will decrease. Price Quantity
Suppose that you decide to start a new business of making children’s ready-made garments. Make a (Hypothetical) linear supply schedule with 7 different price points and corresponding quantity supplied for your business. Make a graph showing equilibrium, shortage and surplus in the ready-made garments market. Give interpretation of this graph. Suppose cheap ready-made garments are imported from China. Draw a graph to show changes in equilibrium price and quantity for the Pakistani ready-made garments market. Give interpretation of this graph. Suppose that to boost the local industry, the Pakistani government gives subsidy on electricity prices. Draw a graph to show changes in equilibrium price and quantity. Give interpretation of this graph. Suppose that cheap cloth is imported from China for production of readymade garments and at the same time tourism in Pakistan increases bringing many more buyers of ready-made garments in the market. What will be impact on equilibrium price and…
14. Over the past few year’s consumer tastes and the number of buyers in the market for a game called ‘pickle ball’ have increased dramatically. Thus, the demand for tickets to pickle ball events has increased. Before this all started the equilibrium price of a ticket to a pickle ball event was negative. This means that: A few years ago, there would have been a surplus of tickets even at a price of zero, now the invisible hand has pushed prices to greater than zero. A few years ago, the quantity of tickets demanded was less than quantity supplied. Pickle ball event tickets resembled the market for recyclable cardboard a few years ago Greater demand for pickle ball tournament tickets will lead to a greater demand – and higher pay – for professional pickle ball players. All of the above. B and D only
Give typing answer with explanation and conclusion The demand for pear is given by Q(P D)=200-4P D and the supply is Q(P S)=2Ps -40 where P D is the price paid by demanders and P s is the price received by suppliers measured in dollars per kg. What is the equilibrium price (P) and quantity (Q)?
Consider the Figure below for the market of gasoline, given the equilibrium after a change in supply from S1 to S2 Price (per gallon) $5 4 3 2 1 0 S₁ D 200 300 400 500 600 Quantity of gasoline (per month) A. the equilibrium price will decrease due to excess supply at the old equilibrium price level. B. the equilibrium price will increase due to excess demand at the old equilibrium price level. 100 S₂ C. consumer surplus will decrease due to decrease in the market price. D. the equilibrium quantity will decrease due to excess demand at the old equilibrium price level.
(b) Explain the concept of market equilibrium with an appropriate diagram using the data provided below . The table below refers to the market data for washing machines . Quantity Demanded Quantity Supplied Price (OMR) ('000 units) ('000 units) 180 20 120 150 30 80 120 50 50 90 80 30 70 120 20 Using the above data, draw a diagram showing the market demand and market supply curves for washing machines , showing their price and quantity demanded and the point at which this market is in equilibrium.
Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown below: Suppose government establishes a price ceiling of $3.70 for wheat. What might prompt it to establish this price ceiling? Explain carefully the main effects. Demonstrate your answer graphically.