Suppose the following for a resource (measure in tons): Market demand schedule is Pd = 200 - 4Q Market supply schedule is Ps = 80 + 2Q. Total Reserve is 30 tons The equilibrium quantity will be 20 and the market price will be  120.  There are 2 periods (each period is 5 years) The Discount rate is 6.5%  the total reserve is 50 tons.  The socially efficient quantity for period 1 and 2 will be ___ and ____

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Suppose the following for a resource (measure in tons):

  • Market demand schedule is Pd = 200 - 4Q
  • Market supply schedule is Ps = 80 + 2Q.
  • Total Reserve is 30 tons

The equilibrium quantity will be 20 and the market price will be  120. 

  • There are 2 periods (each period is 5 years)
  • The Discount rate is 6.5%
  •  the total reserve is 50 tons. 

The socially efficient quantity for period 1 and 2 will be ___ and ____

 

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