AREC 1, Microeconomics

Assignment Help:
Equation (1) gives a hypothetical demand curve for hybrid vehicles in the United States during the year 2000, where Q is the quantity demanded and P is the price. Equation (2) gives a hypothetical supply curve for hybrid vehicles in the United States for the same time period, where Q is the quantity supplied and P is the price.

(1) P = -0.01Q + 40,000

(2) P = 0.0025Q + 10,000

a) Draw both the demand and supply curves on the same graph, with price (P) on the vertical axis and quantity (Q) on the horizontal axis, on your own sheet of paper to assist in answering (b) and (c).

b) Find the equilibrium price P* and quantity Q*. Using what you know about what supply and demand curves represent, explain why P* and Q* are the equilibrium price and quantity for the hybrid vehicle market in the United States for 2000.

Related Discussions:- AREC 1

Paradox of thrift, Paradox of Thrift: An individual household, governmentor...

Paradox of Thrift: An individual household, governmentor business may attempt to save money by reducing their current expenditures. Though those attempts to save, once amalgamated

States the amount of grain, If Kansas can formed either 400 tons of wheat o...

If Kansas can formed either 400 tons of wheat or 100 tons of corn and Nebraska can formed 300 tons of corn or 200 tons of wheat then it makes sense for the two states to specialize

What is development economics, What is development economics? Traditio...

What is development economics? Traditional economics studies the allowance of scarce resources among alternative uses. Development economics seems at the economic, politica

Explain the term laissez-faire, Explain the term Laissez-Faire The term...

Explain the term Laissez-Faire The term "laissez-faire" is used to explain an economic system where the government intervene as little as possible and leave the private sector

Explain the roles of economics theory, Explain the roles of economics theor...

Explain the roles of economics theory. Roles of Economic Theory An economic theory has three probable roles: a. This can be used to describe economic behavior and economi

Project work, PLEASE GIVE ANY ONE TOPIC OF ECONOMIC WITH ANSWERS

PLEASE GIVE ANY ONE TOPIC OF ECONOMIC WITH ANSWERS

Oparation research, discuss the significance of paration research

discuss the significance of paration research

Theory of Consumption, llustrate and explain the changing demand gor big Ma...

llustrate and explain the changing demand gor big Mac using the indifference curves and budget line

Borrowings, Borrowings: The widening fiscal gap led to a steep rise in...

Borrowings: The widening fiscal gap led to a steep rise in the outstanding liabilities of the Central Government. The outstanding domestic debt of the Central Government as a

Write Your Message!

Captcha
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!

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