Suppose you have a market with demand of: P = 180 - 4Q and the supply (of "all other firms") is: P = 2Q a. Please make a graph of the market, focusing on "all other firms," and label the equilibrium price and quantity. b. Write out the equation for the residual demand curve facing an individual firm. Show your work. c. Please make a graph of the residual demand curve.
Suppose you have a market with demand of: P = 180 - 4Q and the supply (of "all other firms") is: P = 2Q a. Please make a graph of the market, focusing on "all other firms," and label the equilibrium price and quantity. b. Write out the equation for the residual demand curve facing an individual firm. Show your work. c. Please make a graph of the residual demand curve.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 8CQ
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Transcribed Image Text:Suppose you have a market with demand of: P = 180 - 4Q and the supply (of "all other firms") is: P = 2Q
a. Please make a graph of the market, focusing on "all other firms," and label the equilibrium price and quantity.
b. Write out the equation for the residual demand curve facing an individual firm. Show your work.
c. Please make a graph of the residual demand curve.
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