Show the effect of income on equilibrium price

Assignment Help Business Economics

Reference no: EM13995359

Due to the recession that lowered income, the market price of good X got lower. For good X, we assume that Qd(P) = 1000 − P +Y/20 , and Qs(P) = 2P −Y/20 , where Y is the income, and P is the price of good X. (a) Derive the equilibrium price P ∗in terms of Y . (b) Use your answer at (a) to show the effect of income on equilibrium price, that is, find dP/dY

Reference no: EM13995359

Questions Cloud

What amounts from equity method investments : What amounts from equity method investments are reported in the comparative income statements?

What wavelength do we report receiving : These LGMs use a common red laser to signal to other ships and space stations. At rest the laser light wavelength is 633nm. As they are coming at their full speed towards earth they send a laser signal to us. What wavelength do we report receiving..

What is meant by intensive margin and extensive margin : In health economics, define what is meant by intensive margin and extensive margin. Thinking about a diagnostic test such as breast cancer screening, describe what it means to increase the use of the test (1) on the intensive margin and (2) on the ex..

Discuss how the concepts of employment : Mary works at Acme, Inc. The company is heavily regulated by the Environmental Protection Agency (EPA) and it has an audit scheduled for next week. Mary's boss approached her and requested that she not tell anyone about the recent toxic waste spill..

Show the effect of income on equilibrium price : Due to the recession that lowered income, the market price of good X got lower. For good X, we assume that Qd(P) = 1000 − P +Y/20 , and Qs(P) = 2P −Y/20 , where Y is the income, and P is the price of good X. (a) Derive the equilibrium price P ∗in ter..

Paper - death and judgment seat of christ : You must choose from the approved list below: Angels and Demons, Arminianism and Calvinism, Assurance of Salvation and Doubt and Baptism of Holy Spirit and Spiritual Gifts

Find angular velocity of this system just after collision : A uniform 100.0g, one-half-meter stick is suspended by a short chain of negligible mass passing through a small hole at the top end of the stick, and is it hanging vertically. At some point 10.0g piece of gum moving at 2.5m/s in horizontally hits ..

What does microsoft mean by the term : The note indicates Unrealized holding losses during 2009 in the amount of $(263) million. Is this the amount Microsoft would include as a separate component of shareholders' equity? Explain.

Government hired unemployed workers : What would happen to GDP if the government hired unemployed workers, who had been amount $TR ain unemployment benefits, as government employees and now paid them $TR to do nothing? Explain.

User Account

All Pages