User Account

All Pages

Find the new equilibrium price and quantity

Assignment Help Microeconomics
Reference no: EM13817275

The demand curve is given by QD = 500 - 5PX + 0.5I + 10PY - 2PZ where QD = quantity demanded of good X PX = price of good X I = consumer income, in thousands PY = price of good Y PZ = price of good Z

a. Based on the demand curve above, is X a normal or an inferior good?

b. Based on the demand curve above, what is the relationship between good X and good Y?

c. Based on the demand curve above, what is the relationship between good X and good Z?

d. What is the equation of the demand curve if consumer incomes are $30,000, the price of good Y is $10, and the price of good Z is $20? e. Graph the demand curve that you found in (d), showing intercepts and slope.

f. If the price of good X is $15, what is the quantity demanded? Show this point on your demand curve. g.

Now suppose the price of good Y rises to $15. Graph the new demand curve. Suppose the demand and supply curves for a product are given by QD = 500 - 2P QS = -100 + 3P

a. Graph the supply and demand curves.

b. Find the equilibrium price and quantity.

c. If the current price of the product is $100, what is the quantity supplied and the quantity demanded?

How would you describe this situation, and what would you expect to happen in this market?

d. If the current price of the product is $150, what is the quantity supplied and the quantity demanded?

How would you describe this situation, and what would you expect to happen in this market?

e. Suppose that demand changes to QD = 600 - 2P.

Find the new equilibrium price and quantity, and show this on your graph.

Reference no: EM13817275

Questions Cloud

Compute kimm total standard cost per unit : Manufacturing overhead. Overhead is applied at a rate of $5.10 per direct labor hour. Compute Kimm's total standard cost per unit.
Assignment on biotechnology applications : Biotechnology Applications
Security of the facilities : Write 2 pages of the physical security policy section for Home Depot regarding their security incident. Include the follow: Security of the facilities: -Physical entry controls -Security offices, rooms, and facilities
Old website from an externally hosted solution : Tony's Chips has recently been sold to a new independent company. The new company has hired you to manage a project that will move the old Website from an externally hosted solution to an internal one. The company's leadership is very concerned about..
Find the new equilibrium price and quantity : Find the new equilibrium price and quantity, and show this on your graph - Find the equilibrium price and quantity.
What are some ways increase our chances of success : IT Projects are notoriously difficult to complete successfully and they are expensive to start with. Most failures can be attributed to issues not directly tied to technology issues, but rather issues of organizational behavior.What are some ways in ..
What is the definition of the universe : What is the definition of the Universe
Identify methods of securing routers and switches : Write a 1-page summary that discusses the following about creating secure networks: -identify methods of securing routers and switches -recognize characteristics of a variety of types of firewalls
Examine what a needs assessment is : Examine what a needs assessment is

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd