Illustrate what are new equilibrium price and equilibrium

Assignment Help Business Economics

Reference no: EM1362808

The following relations describe monthly demand and supply for a computer support service catering to small businesses:

Qd=3,000 -10 P
Qs=-1,000+ 10P

where Q is the number of businesses that need services and P is the monthly fee, in dollars.

a) At what average monthly fee would demand equal zero?

b) At what average monthly fee would supply equal zero?

c) Plot the supply and demand curves.

D) What is the equilibrium price/output level?

e) Suppose demand increases and leads to a new demand curve:
Qd=3,500 - 10P
what is the effect on supply? What are the new equilibrium P and Q?

f) Suppose new suppliers enter the market due to the increase in demand so the new supply curve is Q= -500 + 10P. What are the new equilibrium price and equilibrium quantity?

G) Show these changes on the graph.

Reference no: EM1362808

Questions Cloud

Estimate the required rate of return : Ki is the required rate of return that we are solving for ; Rf is the risk-free rate; and we shall assume it is 4.6 percent; bi is the systematic risk of a stock that we will estimate;

Explain how much can you expect at retirement : If the mutual fund will average 9% annual return over the course of your career, explain how much can you expect at retirement.

Explain and discuss the cultural factors : Explain and discuss the cultural factors that have the most influence on consumers purchasing your product/service?

Outcomes of community health promotion : Based on the health indicators of Healthy People 2010, how would you evaluate the outcomes of community health promotion interventions in your area?

Illustrate what are new equilibrium price and equilibrium : Assume new suppliers enter the market due to the increase in demand so the new supply curve is Q= -500 + 10P. Illustrate what are the new equilibrium price and equilibrium quantity.

What is the magnitude of the vertical component of velocity : Three equal point charges, each with charge 1.95 , are placed at the vertices of an equilateral triangle whose sides are of length 0.400 . What is an electric potential energy of the system? (Take as zero the potential energy of the three charges ..

Explain how the data and information are stored and used : Explain how the data and information are stored and used and Develop a proposal for improving the data warehouse capabilities for the selected organization

Explain why companies issue bonds : Why do companies issue bonds? Would you rather buy a bond at a discount or a premium rate? Why or why not? What is the determining factor of whether a bond is sold at a discount, face, or premium?

Explain the concept of employee involvement : Explain the concept of employee involvement in the selection of Personal Protective Equipment and Do you believe it is beneficial?

User Account

All Pages