Explain market demand and market supply

Assignment Help Microeconomics

Reference no: EM13175692

In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in
a. a shortage of 80 units
b. a shortage of 44 units
c. a surplus of 26 units

d. neither a shortage nor a surplus

Reference no: EM13175692

Questions Cloud

Determine the optimal volume for the product : A company produces an electronic timing switch that is used in consumer and commercial products. The fixed cost (CF) is $73,000 per month, and the variable cost (CV) is $94 per unit.

How to make-versus-purchase situation for a component : A night vision goggle manufacturer is evaluating a make-versus-purchase situation for a component used in its low-priced products. The component can be purchased at a variable wholesale price of P=1200+50y where y is the number of items.

Define demand is inelastic : Suppose the equilibrium price in the market is $24 and the price elasticity of demand for the linear demand function at the market equilibrium is 1.5. Then we know that: A. demand is inelastic. B. marginal revenue is $8.

Explain inverse demand and supply functions : Consider a market characterized by the following inverse demand and supply functions: PX = 50 - 4QX and PX = 10 + 2QX. Compute the surplus producers receive when a $30 per unit price floor is imposed on the market.

Explain market demand and market supply : In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in a. a shortage of 80 units b. a shortage of 44 units

How to raise the equilibrium price : An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline in a market with downward sloping demand and upward sloping supply would raise the equilibrium price. a exactly $1.00 per gallon.

Explain lifetime medical costs of treating aids : he most recent studies of lifetime medical costs of treating AIDS? a)have shown a significant increase in the estimates due to earlier diagnosis b)have shown a significant increase due to the use of new drugs including protease inhibitors

What is the increase in the excise tax on alcohol : An increase in the excise tax on alcohol? a)will have no effect on alcohol consumption b)will generate minimal tax revenues for the federal government c)couped with a uniform drinking age nationwide would save lives

Explain rent-seeking behavior : Rent-seeking behavior results in a)increased economic activity by promoting efficiency b)lower economic acitivity by diverting resources to less-productive uses c)a more equitable distributionof income and wealth

User Account

All Pages