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

Highest willingness to pay, Since anyone is able to obtain a license, not n...

Since anyone is able to obtain a license, not necessarily the low cost suppliers of archery lessons, and it is not necessarily the individuals with the highest willingness to pay w

Fiscal, what is the supply side

what is the supply side

Gross domestic product, GDP is an important indicator of a nation's economi...

GDP is an important indicator of a nation's economic performance. It has many components which contribute to the growth of the economy. Oil is a minor component of GDP and therefor

Show the investment function in the IS-LM model, Q. Show the investment fun...

Q. Show the investment function in the IS-LM model? The investment function in the IS-LM model Investment was an exogenous variable in cross model owing to the fact that

Explain the term unit labor costs, An article published in Die Zeit on 25 M...

An article published in Die Zeit on 25 March 2010 analyses the German policy that allows for only moderate increases in wages. According to this article, the unit labor costs in Ge

Robert''s new way vacuum cleane, Robert's New Way Vacuum Cleaner Company is...

Robert's New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. Its demand curve for t

What is an oligopoly?, Oligopoly is a marketplace where the deliver is cont...

Oligopoly is a marketplace where the deliver is controlled by a small group of companies. In this condition, the actions of single company will have a material effect on the whole

BALANCE OF PAYMENTS, explain any two factors that cause the shifts in the b...

explain any two factors that cause the shifts in the balance of payments curve.

Business cycle, Analyse the effect of contraction phase to the vunerable

Analyse the effect of contraction phase to the vunerable

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