QUESTION 1 Markets always create environmental degradation True O False QUESTION 2 A positive externality is always desirable to society because it increases social welfare O True O False QUESTION 3 Suppose we have a demand function given by: P=30-Q And a supply function given by P=Q Find the equilibrium price QUESTION 4 Bonus Question Assume the demand function is: P=30-Q And the supply function is: P=Q Calculate the equilibrium quantity

QUESTION 1 Markets always create environmental degradation True O False QUESTION 2 A positive externality is always desirable to society because it increases social welfare O True O False QUESTION 3 Suppose we have a demand function given by: P=30-Q And a supply function given by P=Q Find the equilibrium price QUESTION 4 Bonus Question Assume the demand function is: P=30-Q And the supply function is: P=Q Calculate the equilibrium quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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< 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.
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