GROUP I Your personal demand function is P = 50-2Q. 1. Graph your demand function and then calculate Qmax, the Q that maximizes your utility, and your maximum utility Umax at Qmax. 2. Market Price is PM = 20. Calculate your consumer surplus (CS) at Pм = 20. 3. At PM 20, how much is your unmet need (UM)? GROUP II Your personal supply function is P=8+1.5Q. 1. Graph your supply function and then calculate your profit (II) at the market price of PMI = 16. 2. Your capacity quantity is Qc = 12 and the market price is PM2 = 32. Calculate your profit (II) at the market price of PM2 = 32. GROUP III Market Demand (D) and Supply (S) are: D: P=60-2Q S: P 10+2Q 1. Calculate equilibrium quantity (Qe) and equilibrium price (P.) and then graph D and S in the same diagram. 2. At "e", what is the net benefit (NB.) that the market may realize? 3. At Q 8, what is the NB and the Dead-Weight Loss (DWL)? 4. At Q 16, what is the NB and the Dead-Weight Loss (DWL)?
GROUP I Your personal demand function is P = 50-2Q. 1. Graph your demand function and then calculate Qmax, the Q that maximizes your utility, and your maximum utility Umax at Qmax. 2. Market Price is PM = 20. Calculate your consumer surplus (CS) at Pм = 20. 3. At PM 20, how much is your unmet need (UM)? GROUP II Your personal supply function is P=8+1.5Q. 1. Graph your supply function and then calculate your profit (II) at the market price of PMI = 16. 2. Your capacity quantity is Qc = 12 and the market price is PM2 = 32. Calculate your profit (II) at the market price of PM2 = 32. GROUP III Market Demand (D) and Supply (S) are: D: P=60-2Q S: P 10+2Q 1. Calculate equilibrium quantity (Qe) and equilibrium price (P.) and then graph D and S in the same diagram. 2. At "e", what is the net benefit (NB.) that the market may realize? 3. At Q 8, what is the NB and the Dead-Weight Loss (DWL)? 4. At Q 16, what is the NB and the Dead-Weight Loss (DWL)?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 8QFR
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Transcribed Image Text:GROUP I
Your personal demand function is P = 50-2Q.
1. Graph your demand function and then calculate Qmax, the Q that maximizes your utility, and your
maximum utility Umax at Qmax.
2. Market Price is PM = 20. Calculate your consumer surplus (CS) at Pм = 20.
3. At PM 20, how much is your unmet need (UM)?
GROUP II
Your personal supply function is P=8+1.5Q.
1. Graph your supply function and then calculate your profit (II) at the market price of PMI = 16.
2. Your capacity quantity is Qc = 12 and the market price is PM2 = 32. Calculate your profit (II) at
the market price of PM2 = 32.
GROUP III
Market Demand (D) and Supply (S) are:
D: P=60-2Q
S: P 10+2Q
1.
Calculate equilibrium quantity (Qe) and equilibrium price (P.) and then graph D and S in the same
diagram.
2. At "e", what is the net benefit (NB.) that the market may realize?
3. At Q 8, what is the NB and the Dead-Weight Loss (DWL)?
4. At Q 16, what is the NB and the Dead-Weight Loss (DWL)?
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