Find quantity supplied and quantity demanded, Business Economics

Assignment Help:

Find quantity supplied and quantity demanded:

Suppose there are 300 used cars, with 3 quality levels: bad, medium, and good.  A seller knows the quality of his car but a buyer does not.  The only thing buyers know is that 100 of all used cars are bad, 100 medium, and 100 good.  The values of each type of car to a seller and a buyer are: 

1015_Find quantity supplied and quantity demanded.png

a)  Let P denote the price of a used car.  Find quantity supplied (Q ) and quantity demanded (Qd) of cars if P ≥ 3000. 
b)  Find Qs and Qd if 2000 ≤ P < 3000.
 
c)  With quantity (Q) on the horizontal axis and price (P) on the vertical, draw the supply curve for cars.  Then draw the demand curve assuming that there is an infinite number of buyers.  Label the curves and key points in your graph clearly.
 
d)  In equilibrium, what is the price and quantity of cars?  What kind(s) of cars are traded?


Related Discussions:- Find quantity supplied and quantity demanded

Condition of covered interest parity, (a) Suppose that the British Pound is...

(a) Suppose that the British Pound is quoted at $1.4419-36 and the Swiss Franc is quoted at $0.6250-67. What is the direct quote for the British Pound in Zurich? Note that a direct

Currency option combinations, Currency Option Combinations A currency o...

Currency Option Combinations A currency option combination uses simultaneous call and put option positions to construct a unique position to suit the hedger's or speculator's n

What is meant by ethical decision making and problem solving, QUESTION ...

QUESTION On a dark day, a train carrying more than 25 propane tankers derailed and began to burn. Upon arrival at the scene and conducting an initial size-up, the incident comm

Growth in private capital flows, Growth in Private Capital Flows is explain...

Growth in Private Capital Flows is explained below: There has been a extraordinary growth in private capital flows since the 1990s. For instance, the value of capital flow tran

Finacial Fiasco Book Review, Can anyone type me a paper on the book financi...

Can anyone type me a paper on the book financial fiasco? I will provide with a link to the book.

Entrepreneurship and economic growth, Write a book review of a book of your...

Write a book review of a book of your choice (chosen from the list of course reference literature) by either Joseph A. Schumpeter or Israel Kirzner about entrepreneurship and macro

What are the assumptions of dependency theory, What are the assumptions of ...

What are the assumptions of dependency theory? The assumptions of dependency theory: Dependency theory extends Marx is theory of surplus value to international relationship

Marginal utility and consumer behaviour, how can a community having water ...

how can a community having water shortages issues be resolved using marginal utility and consumer behaviour

Global finance crisis, Australia has emerged from the Global Finance Crisis...

Australia has emerged from the Global Finance Crisis (GFC) as "the strongest economy in the developed world" (Editorial, The Australian, 11 December 2009). The economic editor of T

Explain the relationship between scarcity, QUESTION (a) Explain the rel...

QUESTION (a) Explain the relationship between scarcity, choice and opportunity cost. (b) Distinguish between centrally planned, laissez-faire and mixed economic systems rega

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