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

Introduction to business economic, Ask question different between Mar...

Ask question different between Marginalism & incrementalism #Minimum 100 words accepted#

Ecnomics, Explain the concept of scarcity, and the role it plays in decisio...

Explain the concept of scarcity, and the role it plays in decision making

What are the major economic factors, International oil has been described a...

International oil has been described as the lifeblood of industrial society. A National Security Council paper in 1953 noted that American Based multinational oil companies were in

Less developed countries economies grow by primary sector, Can less develop...

Can less developed countries economies grow by developing its primary sector as agriculture? Less developed countries economies can grow by developing its primary sector as ag

How can trade agreements assist development, How can trade agreements assis...

How can trade agreements assist development? A trade agreement is while two or more countries to by decrease or abolish tariffs, non-trade and quotas barriers which are establ

Wheeled coach, What is an alternative process strategy to the assembly line...

What is an alternative process strategy to the assembly line that Wheeled Coach currently uses?

How does resource enhancement improve development, How does resource enhanc...

How does resource enhancement improve development? Enhancements in the quantity and quality of resources increases productivity hence incomes. Enhanced management raises outpu

What is social exclusion, What is social exclusion? Social Exclusion...

What is social exclusion? Social Exclusion: Social exclusion arises while people are denied access to goods opportunities taken as normal in a society. In several develo

Evaluate Perfect Competition, Evaluation of perfect competition arguing the...

Evaluation of perfect competition arguing the effect on stakeholders, priorities and SR/LR

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