You are given a task for analysis the market for Sport Bike. You found that when the market price of bike is $500 the market demand is 9,200 bikes, whereas the market supply is 6,000 bikes. Yet, when the price rises to $650 the market demand is 6,800 bikes but the market supply is 8,000 bikes. Your tasks are: a) Define the equations of market demand and market supply for bike. b) Find the equilibrium-price and equilibrium- quantity and draw a graph to show this market. c) Estimate the consumers’ surplus, producers' surplus and bike market's surplus.
You are given a task for analysis the market for Sport Bike. You found that when the market price of bike is $500 the market demand is 9,200 bikes, whereas the market supply is 6,000 bikes. Yet, when the price rises to $650 the market demand is 6,800 bikes but the market supply is 8,000 bikes. Your tasks are: a) Define the equations of market demand and market supply for bike. b) Find the equilibrium-price and equilibrium- quantity and draw a graph to show this market. c) Estimate the consumers’ surplus, producers' surplus and bike market's surplus.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
Problem 4MC
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Question
![• You are given a task for analysis the market for Sport
Bike. You found that when the market price of bike is
$500 the market demand is 9,200 bikes, whereas the
market supply is 6,000 bikes. Yet, when the price rises
to $650 the market demand is 6,800 bikes but the
market supply is 8,000 bikes. Your tasks are:
a) Define the equations of market demand and market
supply for bike.
b) Find the equilibrium-price and equilibrium–
quantity and draw a graph to show this market.
c) Estimate the consumers' surplus, producers' surplus
and bike market's surplus.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5fc25129-1396-49ef-9b60-a35adbe1237f%2F0f31d9ee-87ea-4eb0-97eb-95fb22a5573e%2Fmoq9egb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:• You are given a task for analysis the market for Sport
Bike. You found that when the market price of bike is
$500 the market demand is 9,200 bikes, whereas the
market supply is 6,000 bikes. Yet, when the price rises
to $650 the market demand is 6,800 bikes but the
market supply is 8,000 bikes. Your tasks are:
a) Define the equations of market demand and market
supply for bike.
b) Find the equilibrium-price and equilibrium–
quantity and draw a graph to show this market.
c) Estimate the consumers' surplus, producers' surplus
and bike market's surplus.
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