Supply and Demand, Equilibrium, Surplus, Deadweight Loss Suppose the demand for baseball cards has the following supply and demand curves: Ps= 10+ 0.10s PD 100 -0.08QD a. Solve for the equilibrium price and quantity. b. In the space below, graph the supply and demand curves (make sure price is on the y-axis). C. Indicate on the graph CS, PS, and TS. Solve for these values analytically.

Supply and Demand, Equilibrium, Surplus, Deadweight Loss Suppose the demand for baseball cards has the following supply and demand curves: Ps= 10+ 0.10s PD 100 -0.08QD a. Solve for the equilibrium price and quantity. b. In the space below, graph the supply and demand curves (make sure price is on the y-axis). C. Indicate on the graph CS, PS, and TS. Solve for these values analytically.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 3QR

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Question

1. Supply and Demand, Equilibrium, Surplus, Deadweight Loss
Suppose the demand for baseball cards has the following supply and demand curves:
Ps 10+ 0.1Qs
PD
Solve for the equilibrium price and quantity.
1000.08QD
c.
b. In the space below, graph the supply and demand curves (make sure price is on the y-axis).
C. Indicate on the graph CS, PS, and TS. Solve for these values analytically.
d. Suppose congress sets a price ceiling on baseball cards of $40. Does this cause a surplus or a
shortage? What is the quantity of this surplus or shortage?
What is the DWL because of the price ceiling?

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Step 1: Define the dynamics of the market

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Step 2: Solve for the equilibrium price and quantity

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Step 3: Graph the supply and demand

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Step 4: Figure out the CS, PS, and the TS

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