Inverse market supply curve, Macroeconomics

Assignment Help:

Consider the market for the trusty widget (the most common good in the world if economics textbooks are to be believed). Assume that the market is perfectly competitive. Suppose the inverse market supply curve is given as:

P = 10 + 0.5QS

And that the inverse market demand curve is:

P = 22 - 2.5Qd

A) Find the market equilibrium price, PE, and the market equilibrium quantity, QE. Why is this price and quantity considered efficient?

B) Determine the value of the producer surplus and consumer surplus at equilibrium.

C) Find the total surplus, but this time use integration from 0 to QE to solve for this solution. Show that this is equivalent to the sum of CS and PS you found in Part (B).


Related Discussions:- Inverse market supply curve

Electrical company audit indicates that motor consumption, An electrical co...

An electrical company audit indicates that motor consumption is 4x106 kWh per year. By upgrading to high efficiency motors a 10% savings can be made. The additional cost for the mo

Calculate profit-maximizing price and quantity, A monopolist faces the foll...

A monopolist faces the following demand function for its product: Q = 45 - 5P The fixed costs of the monopolist are $12 and the variable costs are $5 per unit. a) What are the pro

Balance of payment, with the help of a graph, explain factors that may caus...

with the help of a graph, explain factors that may cause a shift in the balance of payments

Calculate the demand and probability, Sally's Silk Screning produces specia...

Sally's Silk Screning produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many to produce for an upcoming event. During the event its

Factors affecting the price elasticity of demand, Q. Discuss about the fact...

Q. Discuss about the factors affecting the Price Elasticity of Demand. a. Availability of Substitute- Availability of close substitute is important determinants of elasticity of

How are the qualitative aspects of development measured, How are the qualit...

How are the qualitative aspects of development measured? Development includes the evolution of more safe, stable, participatory and only societies. This involves capacity deve

What causes a supply curve to shift, What causes a supply curve to shift? ...

What causes a supply curve to shift? a. Changes into Input Prices An input is a good which is used to generate another good. b. Changes into Technology c. Chang

Derive the complex amplitude of the double convex lens, Derive that the com...

Derive that the complex amplitude of the double convex lens shown in the image below with focal length 1/f = (n-1 ) (1/R 1 - 1/R 2 ). Hint: we derived an plano convex lens in cla

What are the two types of money, What are the Two types of money In mos...

What are the Two types of money In most countries, one can identify two "types of money": Currency and coins Bank deposits Total value of all the money in 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