: Let the Market Demand curve for soybeans be given by the following equation: Q=100000 -10000P where Q = the quantity of soybeans in kilograms P = the price of soybeans in dollars per kilogram. Supply: Let the Market Supply curve for soybeans be given by the equation: Q= -5000+5000P Graph the Demand Curve on a sheet of paper. Be sure to label the axes. What is the slope of the Demand Curve? Is it positive or negative? Why? What is the intercept? Note that in order to calculate the geometrically correct intercept and slope you probably want to rewrite the equation so that P is expressed in terms of Q, and then interpret the coefficients. Equilibrium: Graph the Demand and Supply curves together. Label all parts of the graph. Using algebra, solve for the equilibrium price and quantity of the soybeans. Consumer Surplus: The Consumer Surplus (CS) is the triangular area under the demand curve and above the equilibrium price. Solve for the consumer surplus at the equilibrium price and quantity. (Hint: Use the formula for the area of a triangle.) (See Chapter 4, p. 80.) Producer Surplus: The Producer Surplus (PS) is the triangular area above the supply curve and below the equilibrium price. Solve for the producer surplus at equilibrium price and quantity. (Again, use the formula for the area of a triangle.) (See Chapter 4, p. 80.) Price Floor: Assume that the government creates price supports for soybeans in order to help the farmers. Assume that these price supports take the form of a price floor in which the government prohibits the price of soybeans from falling below $8.00 per kilogram. Draw a diagram. What will be the quantity of soybeans supplied? What will be the quantity of soybeans demanded? What will be the result of this price floor? In what quantity? Price Ceiling: Assume that the government creates price controls for soybeans in order to help the poor. Assume that these price controls take the form of a price ceiling in which the government prohibits the price of soybeans from rising above $5.00 per kilogram. Draw a diagram. What will be the quantity of soybeans supplied? What will be the quantity of soybeans demanded? What will be the result of this price ceiling? In what quantity? Law of Demand: A) Draw a graph and explain the Law of Demand. B) What other variables might affect demand and shift the demand curve? Law of Supply: A) Draw a graph and explain the Law of Supply. B) What other variables might affect supply and shift the supply curve?

Answered: Let the Market Demand curve for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

: Let the Market Demand curve for soybeans be given by the following equation: Q=100000 -10000P

where Q = the quantity of soybeans in kilograms

P = the price of soybeans in dollars per kilogram.

Supply: Let the Market Supply curve for soybeans be given by the equation: Q= -5000+5000P

Graph the Demand Curve on a sheet of paper. Be sure to label the axes. What is the slope of the Demand Curve? Is it positive or negative? Why? What is the intercept? Note that in order to calculate the geometrically correct intercept and slope you probably want to rewrite the equation so that P is expressed in terms of Q, and then interpret the coefficients.

Equilibrium: Graph the Demand and Supply curves together. Label all parts of the graph. Using algebra, solve for the equilibrium price and quantity of the soybeans.

Consumer Surplus: The Consumer Surplus (CS) is the triangular area under the demand curve and above the equilibrium price. Solve for the consumer surplus at the equilibrium price and quantity. (Hint: Use the formula for the area of a triangle.) (See Chapter 4, p. 80.)

Producer Surplus: The Producer Surplus (PS) is the triangular area above the supply curve and below the equilibrium price. Solve for the producer surplus at equilibrium price and quantity. (Again, use the formula for the area of a triangle.) (See Chapter 4, p. 80.)

Price Floor: Assume that the government creates price supports for soybeans in order to help the farmers. Assume that these price supports take the form of a price floor in which the government prohibits the price of soybeans from falling below $8.00 per kilogram. Draw a diagram. What will be the quantity of soybeans supplied? What will be the quantity of soybeans demanded? What will be the result of this price floor? In what quantity?

Price Ceiling: Assume that the government creates price controls for soybeans in order to help the poor. Assume that these price controls take the form of a price ceiling in which the government prohibits the price of soybeans from rising above $5.00 per kilogram. Draw a diagram. What will be the quantity of soybeans supplied? What will be the quantity of soybeans demanded? What will be the result of this price ceiling? In what quantity?

Law of Demand: A) Draw a graph and explain the Law of Demand. B) What other variables might affect demand and shift the demand curve?

Law of Supply: A) Draw a graph and explain the Law of Supply. B) What other variables might affect supply and shift the supply curve?

Expert Solution

Step 1

Given,

Demand =100000 -10000P

Supply = -5000+5000P

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

whats the answer to questions 4 and 5

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.