Equilibrium quantity price and quantity, Macroeconomics

Assignment Help:

Over the past few years there has been much concern about falling housing prices, and some policy makers have argued that the government should put a floor under prices so that they stop falling.
Suppose that in a given community, the supply and demand of housing are given by the following equations:
S= 100P - 100
D = -50P + 1400,
where S is quantity supplied (in thousands), D is quantity demanded (in thousands), and P is the price per home (in tens of thousands).
Suppose that the price is currently 15. In what direction would you expect prices to be moving?
What are the equilibrium price and quantity? How much money would be spent on housing in this community in equilibrium? (Employ your diagram to help you think about the problem, but use algebra to get your answer.)


Related Discussions:- Equilibrium quantity price and quantity

Ashly''s budget constraint, Ashley can join a club for an annual fee of $20...

Ashley can join a club for an annual fee of $20. if she can purchase golf balls at 40% off the retail price. Draw ashly's budget constraint if she joins and if she does not join th

Two-period model, Suppose that a household in a two-period model has incom...

Suppose that a household in a two-period model has income of $30,000 in period 1 and $25,000 in period 2, and the interest rate is 75 percent. Assume that the price of the good is

What are the types of market economies, There are 4 main types of market ec...

There are 4 main types of market economies. They are also called as Economic Systems. The four are Free Market, Mixed Market, Traditional and Command Economy

What are the capitalist countries in the world, Capitalism is the dominant,...

Capitalism is the dominant, most used form of government there is in the globe today. Presently, over 80% of countries use capitalism and a free market economy.

What are the production elasticities of demand, The following Cobb-Douglas ...

The following Cobb-Douglas production function is used to describe the output generated by a local government maintenance agency. Q = αL β1 K β2 E β3 Where L represents numb

Equilibrium quantity price and quantity, Over the past few years there has ...

Over the past few years there has been much concern about falling housing prices, and some policy makers have argued that the government should put a floor under prices so that the

State about the gross domestic product, Gross domestic product Definit...

Gross domestic product Definition Perhaps the most significant concept in macroeconomics is Gross Domestic Product (GDP): Gross Domestic Product (GDP) is defined as the

What is productivity or average product, What is productivity? Produ...

What is productivity? Productivity or average product (AP): It is output person which is output divided through number of workers AP= Q/L. There labour Productivity can

Illustrate opportunity cost of producing extra units, If the opportunity co...

If the opportunity cost of producing extra units of one good (expressed in terms of the amount of another good that is sacrificed) remains constant, then the shape of the productio

Staic general equilibrium model, given the consumer maximizing problem subj...

given the consumer maximizing problem subjest to consumption, the firm''s maximizing problem subject to revenue as a function of labour demand, and the government''s budget as G=T.

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