Illustrate what will be the new equilibrium price

Assignment Help Macroeconomics

Reference no: EM1337072

Question about Finding equilibrium price and quantity

The supply and demand for the paper firm is given by:

QS=100P-5000

and

QD=0.5 i + 0.2A-100P+5000

where Q is the quantity per year, P is price, I is income per household, and A is advertising expenditure.

a. If A=$10,000 and I =$25,000, what is the demand curve?

b. Plot the demand curve found in part A with the supply curve, then use the graph to find the equilibrium price and quantity.

c. If consumer incomes increase to $30,000, what will be the new equilibrium price and the new equilibrium quantity?

Reference no: EM1337072

Questions Cloud

Products for which demand is predictable : Products for which demand is predictable and relatively stable are called staples.

Impormation of legal system : In your opinion how would you modify or improve the present legal system. Why?

Explain definition of the four p''s of marketing : Explain definition of the four P's of Marketing and what they mean and An example of a company using all four P's is included

Would you agree with the materialism philosophy : The mind-body dualism, in philosophy, maintains that the mind and brain are two distinct categories and one cannot be explained in terms of the other: Mental phenomena are not physical and cannot be explained in physical terms.

Illustrate what will be the new equilibrium price : If consumer incomes rise to $30,000, illustrate what will be the new equilibrium price and the new equilibrium quantity.

Managing changes to project scope document : How should a project manager or team go about managing changes to the Project Scope Document and what are the points and pitfalls that should be kept in mind?

Status of facility employees : Consider the status of facility employees in terms of level of pay, training, duties, and liability.

A new vaccine needed to be tested : A new vaccine needed to be tested to confirm its effectiveness? Explain your answer.

Define how each of the four elements of the marketing mix : Explain Marketing mix and Explain how each of the four elements of the marketing mix impacts the development of Target's marketing strategy and tactics and describe how each element is implemented

User Account

All Pages