In the market for Fante Kenley, the supply and demand functions respectively are Q° = 0.25P+10 and Q° =-0.5P+100 When there is excess demand, price adjusts according to the equation 2-0.5(Q° -Q°) a) Find the long run equilibrium price, P* (that is, the price at which there is no excess demand or supply). b) Formulate and solve he first order differential equation giving Pas a function of time, 1. Is this market dynamically stable or unstable? c) If the initial price is P= 50, how close will the price be to its long run equilibrium value, when t= 10?

In the market for Fante Kenley, the supply and demand functions respectively are Q° = 0.25P+10 and Q° =-0.5P+100 When there is excess demand, price adjusts according to the equation 2-0.5(Q° -Q°) a) Find the long run equilibrium price, P* (that is, the price at which there is no excess demand or supply). b) Formulate and solve he first order differential equation giving Pas a function of time, 1. Is this market dynamically stable or unstable? c) If the initial price is P= 50, how close will the price be to its long run equilibrium value, when t= 10?

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

Suppose Suzuki has the following demand and supply function for Cultus VXL: Qd = 25 - 10P Qs = - 15 + 10P Find out the equilibrium price and quantity
The supply function for a product is 2p − q − 60 = 0, while the demand function for the same product is (p + 20)(q + 10) = 8100. Find the market equilibrium point.
Suppose Suzuki has the following demand and supply function for Cultus VXL: Qd = 55 - 5P Qs = -50 + 10P Find out the equilibrium price and quantity ?
In dynamic pricing environment where prices change regularly the decision to open or close different price point is based one : variable cost demand forecast scheduling breaken point supply forrca
Consider a competitive market for red lentils with 100 identical farmers in Horsham Victoria, a competitive market price of $5 and the following MC for each farmer: MC = $0.05Q Also consider the following market demand function: QD a) Calculate the optimal level of production (in tonnes) for each farmer (show workings) = = 1000 - 40P b) Assuming 100 lentil farmers of equal size how many tonnes of lentils in total will be supplied in the entire market? (show all workings) c) Consider that the government now imposes a 25% tax on producers, calculate i) the new equilibrium level of output for each firm (hint - think about how this affects each farmer's marginal cost), and ii) new total supply in the entire market (show all workings)
A firm produces two substitute goods . Their demand curves and total cost function are given below : P1 = 130 - 4Q1-Q 2 P2 = 160-2Q1-5Q2 TC = 2Q1 +2Q1Q2 + 4Q 2 ( a ) Determine the profit maximizing outputs of both goods . ( Restrict your answers to 2 decimal points ) ( b ) Find the price elasticity of demand . ( c ) Evaluate the second order " Hessian " required for profit to be maximized .
Assume your theater will not sell a ticket for less than 80% of regular price $$$ (my assigned price is 145), but will sell one ticket for one performance at 80% of regular price plus $5 and two performances for 80% of regular price plus $10 for each ticket, for small numbers of movies, x, the theater’s supply curve is modeled by p=S(x). Write down your supply function. Find the equilibrium point. (make sure to provide both x and y coordinates and label it on the graph)
The supply function for a product is 2p - 4 - 10 = 0. while the demand function for the same product is (p + 10)(4 + 30) = 7200. Find the market equilibrium point.
Suppose Suzuki has the following demand and supply function for Cultus VXL: Qd = 55 - 5P Qs = -50 + 10P Find out the equilibrium price and quantity ?
Suppose the market referred to in the previous problem is suddenly hit by a decrease in tastes and preferences. What will happen to Q in this market in the long run (relative to the initial equilibrium)? a) It will decrease b) It will not only decrease but fall to zero c)It will be unchanged d) It will increase e) It will be affected by what is known as the “Kazarosyan Effect”
If Congress is worried about inflation, they might Group of answer choices Increase government spending and taxes Decrease government spending and taxes Increase government spending and decrease taxes Decrease government spending and increase taxes
Please explain both correct and incorrect option Which statement is true about a supply curve represented by a straight line equation such as : P = 5 x (Qs) Statement A: The elasticity of supply is constant. Statement B: The elasticity of supply is equal to one. Statement A and B are both incorrect. Statement A and B are both correct. 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.