where QS is the quantity supplied per week. a. b. C. Calculate the equilibrium price and quantity for a competitive market in which there is no market failure. Draw a diagram that includes the demand and supply curves, the values of the vertical- axis intercepts, and the competitive equilibrium quantity and price. Label the curves, axes and areas. Calculate both the marginal willingness to pay and the total willingness to pay for the equilibrium quantity. of the equilibrium quantity and variable cost of
where QS is the quantity supplied per week. a. b. C. Calculate the equilibrium price and quantity for a competitive market in which there is no market failure. Draw a diagram that includes the demand and supply curves, the values of the vertical- axis intercepts, and the competitive equilibrium quantity and price. Label the curves, axes and areas. Calculate both the marginal willingness to pay and the total willingness to pay for the equilibrium quantity. of the equilibrium quantity and variable cost of
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 20P
Related questions
Question
Please answer all the questions
![Short Answer: Answer in the space provided. Explain your answers clearly and thoroughly.
Label and explain any diagrams you use. Show ALL your work
19.
Suppose that the market demand curve is p = 80 - 8Qd, where p is the price per
unit and Qd is the number of units demanded per week, and the market supply curve is p = 5 +7Q5,
where QS is the quantity supplied per week.
a.
b.
C.
d.
e.
Calculate the equilibrium price and quantity for a competitive market in which there is
no market failure.
Draw a diagram that includes the demand and supply curves, the values of the vertical-
axis intercepts, and the competitive equilibrium quantity and price. Label the curves, axes and
areas.
Calculate both the marginal willingness to pay and the total willingness to pay for the
equilibrium quantity.
Calculate both the marginal cost of the equilibrium quantity and variable cost of
producing the equilibrium quantity.
Calculate the total surplus. How is the value of total surplus related to your calculations
in parts c and d?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f01df11-7490-4fa9-9e51-6ea6d2a32aad%2Ff18b4851-bce1-40af-9e08-a60c25906909%2Fpbjm4fp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Short Answer: Answer in the space provided. Explain your answers clearly and thoroughly.
Label and explain any diagrams you use. Show ALL your work
19.
Suppose that the market demand curve is p = 80 - 8Qd, where p is the price per
unit and Qd is the number of units demanded per week, and the market supply curve is p = 5 +7Q5,
where QS is the quantity supplied per week.
a.
b.
C.
d.
e.
Calculate the equilibrium price and quantity for a competitive market in which there is
no market failure.
Draw a diagram that includes the demand and supply curves, the values of the vertical-
axis intercepts, and the competitive equilibrium quantity and price. Label the curves, axes and
areas.
Calculate both the marginal willingness to pay and the total willingness to pay for the
equilibrium quantity.
Calculate both the marginal cost of the equilibrium quantity and variable cost of
producing the equilibrium quantity.
Calculate the total surplus. How is the value of total surplus related to your calculations
in parts c and d?
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