Question 1 The following information reveals the market condition of cola: Qd = 1,000 – 200P, where Qd is the quantity demanded in number of cans and P is the price (in dollar term) Qs = 100 + 400P, where Qs is the quantity supplied in number of cans Calculate the equilibrium price and equilibrium quantity of cola. Draw the demand-and-supply diagram of the cola market and label all relevant figures of critical points and intercepts. Indicate the consumer surplus of cola market on your diagram. Is the market of cola efficient under the equilibrium?
Question 1 The following information reveals the market condition of cola: Qd = 1,000 – 200P, where Qd is the quantity demanded in number of cans and P is the price (in dollar term) Qs = 100 + 400P, where Qs is the quantity supplied in number of cans Calculate the equilibrium price and equilibrium quantity of cola. Draw the demand-and-supply diagram of the cola market and label all relevant figures of critical points and intercepts. Indicate the consumer surplus of cola market on your diagram. Is the market of cola efficient under the equilibrium?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 1
The following information reveals the market condition of cola:
Qd = 1,000 – 200P, where Qd is the quantity demanded in number of cans and P is the price
(in dollar term)
Qs = 100 + 400P, where Qs is the quantity supplied in number of cans
Calculate the equilibrium price and equilibrium quantity of cola. Draw the demand-and-supply
diagram of the cola market and label all relevant figures of critical points and intercepts. Indicate the
consumer surplus of cola market on your diagram. Is the market of cola efficient under the
equilibrium?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdcc7de61-6c81-441e-9f88-fdabfdeed285%2F47c29382-f60a-4c9d-976f-07e2d852c3f9%2Fmdpaak8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1
The following information reveals the market condition of cola:
Qd = 1,000 – 200P, where Qd is the quantity demanded in number of cans and P is the price
(in dollar term)
Qs = 100 + 400P, where Qs is the quantity supplied in number of cans
Calculate the equilibrium price and equilibrium quantity of cola. Draw the demand-and-supply
diagram of the cola market and label all relevant figures of critical points and intercepts. Indicate the
consumer surplus of cola market on your diagram. Is the market of cola efficient under the
equilibrium?
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