Calculate shortage or surplus that the government set price

Assignment Help Microeconomics

Reference no: EM133341638

Question: You are provided the following information:

One of the salespersons in the USA Corp, Yak Butter Division, found out that the demand and supply equations in the yak butter market is

QS = 500 + 30P and QD = 1500 - 20P

a. The salesperson wants to know the equilibrium price and quantity in the yak butter market. SHOW YOUR CALCULATIONS

b. The salesperson just read an article in the Oregonian stating that Oregon is going to set a price of $10 on yak butter. Based on the demand and supply equations for yak butter in part a, the salesperson wants you to calculate the shortage or surplus that the government set price will cause in the yak butter market SHOW YOUR CALCULATIONS.

c. The salesperson also wants to know if $10 is a ceiling or a floor. Explain how you know.

d. Finally, explain to the salesperson the difference between a change in demand and a change in quantity demanded.

Reference no: EM133341638

Questions Cloud

Should there be an interesting surgery scheduled : Should there be an interesting surgery scheduled, please ask if you can observe! NOTE that it would be a surgical procedure and blood will be involved-eat

Does the production function exhibit increasing constant : Assume that the firm's optimal input combination is interior (it uses positive amounts of both inputs). Derive its long-run total cost curve in terms

Risk of diseases and progression of diseases : Ageing-related physiological changes can increase the risk of diseases and the progression of diseases.

Client interdisciplinary team : Healthcare roles to be included in client's interdisciplinary team. Relevant responsibilities of healthcare role identified in client's interdisciplinary team.

Calculate shortage or surplus that the government set price : supply equations for yak butter in part a, the salesperson wants you to calculate the shortage or surplus that the government set price will cause in the yak

Identify the grieving process to provide support : The nurses must identify the grieving process to provide support and comfort to the grieving families.

Disorders may be diagnosed by colonoscopy : Which of the following disorders may be diagnosed by colonoscopy? Which of the following disorders would most likely be treated with antibiotic medication?

How can be utilize one or more of microsoft office programs : how can be utilize one or more of the microsoft office programs taught to assist with planning the upcoming holiday season or kicking off the New Year starting

What is the cooperative conclusion : Determine the Nash equilibrium of this game; What is the cooperative conclusion? What happens to the outcome of this game if this game is played repeatedly?

User Account

All Pages