Find the equilibrium price and the consumers' and producers' surplus at that priceQuestionSuppose the demand equation isp = D(q) = 900/ q, where q is the number of units demanded at price p, and the supplyequation is p = S(q) = 4/q, where q is the number of units supplied at price p. Determine the equilibrium price and findthe producers' surplus at the equilibrium price level.Select the correct answer below:The equilibrium price is $60 and the producers' surplus is $4,000.The equilibrium price is $100 and the producers' surplus is $4,500.The equilibrium price is $60 and the producers' surplus is $4,500.O The equilibrium price is $100 and the producers' surplus is $4,200.

To determine:The equilibrium price.The producers’ surplus.

Answered: Find the equilibrium price and the…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 2MC

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The following table summarizes information about the market for principles of economics textbooks: What is the market equilibrium price and quantity of textbooks? To quell outrage over tuition increases, the college places a $55 limit on the price of textbooks. How many textbooks will be sold now? While the price limit is still in effect, automated publishing increases the efficiency of textbook production. Show graphically the likely effect of this innovation on the market price and quantity.
(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?
Select the correct answer. A price floor will usually shift: demand supply both neither Illustrate your answer with a diagram.
What is consumer surplus? How is it illustrated on a demand and supply diagram?
Suppose that when price is 10, quantity supplied is 20 units, and when the price is 6, the quantity supplied is 12 units. What is the price elasticity of supply? a. 0.5 b. 0.8 c. 1.0 d. 1.5
can you help me with thia qustion Doug William, the owner of a corner store, estimates that the supply and demand for a specialized energy drinkcould be described by the following equations D : q=−25 p+345 , S : q=50 p−330,where p represents the price in dollars per case (each case contains 12 bottles), and q represents the number ofcases sold each week (a) Determine the market equilibrium price and quantity.
Consider the demand ftunction for processed pork in Canada, Q, = 796.00 - 37p • 20p, + 3p. + 0.002Y %3D The supply function for processed pork in Canada is: Q = 363.00 + 54p - 60ph pis the price of pork Pp is the price of beof = $4 per kg Q is the quantity of pork demanded Pe is the price of chicken = $3 per kg Y is the income of consumers = $12,500 Ph is the price of a hog = $1.50 per kg (measured in millions of kg per year) Solve for the equilibrium price and quantity for pork. The equilibrium price of pork is S and the equilibrium quantity of pork is milion kg per year. (Enter numeric responses using real numbers rounded up to two decimal places.)
Your research department estimates that the supply function for high definition televisions (HDTVs)is given byQ = 2,000 + 3 Px  − 4 Pt  −  Pwwhere Px is the price of HDTVs, Pt represents the price of a tablet, and Pw is the price of an inputused to make HDTVs. Suppose HDTVs are sold for $400 per unit, tablets are sold for $250 per unit,and the price of an input is $1,400. How many HDTVs are produced?
Suppose that the market for bottled water can be represented by the following equations: Demand: P = 10 - 2QDSupply: P = 1 + 0.5QSwhere P is the price per gallon, and Q represents quantity of purified water, represented inmillions of gallons of water consumed.a) Calculate the equilibrium price and quantity of bottled water.b) Concerned over high water prices after the winter storm, the government sets a priceceiling of $2.25 per gallon of water. What is the new quantity of water sold in themarket? Use supply and demand curves to illustrate your answer, showing both theoriginal equilibrium from part a) and the new quantity sold with the price ceiling.c) Calculate the producer surplus and consumer surplus at the initial equilibrium priceand quantity from part a).d) Calculate the new producer surplus and consumer surplus with the price ceiling frompart b).e) How does the total consumer and producer surplus in part c) compare to the totalconsumer and producer surplus in part d)? What…
Utilize the following graph of the medical doctor services market, in which there is a third-party present (insurance company), to answer the following question: P 180 100 20 40 ● 72 Question: Suppose that co-payments are set at $20 per doctor visit and quantity demanded is 72 from patients. In order for doctors to supply 72 doctor visits the price has to be $180. In a regular market (no third-party) the equilibrium price is $100 and the quantity is 40. Why is there a difference between a regular market and a third-party payer market in regards to total costs? What is the difference? All of the available answers are correct. D In third-party payer markets, consumers do not have to pay the full costs of their consumption. This induces people to have lower quantity demanded than otherwise would be the case in a regular market. Therefore total costs increase under a third-party payer market compared to a regular market. The difference in this case is $12,960. In third-party payer markets,…
< Suppose that the quantity supplied S and quantity demanded D of T-shirts at a concert are given by the following functions where p is the price. S(p)=-210+70p D(p) 1150-100p Answer parts (a) through (c). (a) Find the equilibrium price for the T-shirts at this concert. The equilibrium price is $ (Round to the nearest dollar as needed.) What is the equilibrium quantity? The equilibrium quantity is T-shirts. (Type a whole number.) (b) Determine the prices for which quantity demanded is greater than quantity supplied. For the price $ supplied. p $ the quantity demanded is greater than quantity (c) What will eventually happen to the price of the T-shirts if the quantity demanded is greater than the quantity supplied? OA. The price will increase. OB. The price will decrease.
Chapter 2 Problem #5. Suppose the demand and supplycurves for a product are given by QD= 500 −2PQS=−100 + 3Pa. Graph the supply and demand curves.b. Find the equilibrium price and quantity.Qd= Q3500-2P= -100+3PP= Pe = 120 & Qe=260The equilibrium price is $120 and the quantity is 260c. If the current price of the product is $100, what is thequantity supplied and the quantity demanded? How would you describe thissituation, and what would you expect to happen in this market?d. If the current price of the product is $150, what is thequantity supplied and the quantity demanded? How would you describe thissituation, and what would you expect to happen in this market?e. Suppose that demand changes to QD= 600 â€“ 2P.Find the new equilibrium price and quantity, and show this on your graph.***PLEASE SHOW ALL EQUATIONS AND METHODS,

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