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

A good is classified as inferior, a good is classified as inferior if a....

a good is classified as inferior if a. consumers buy less when the price rises b. consumers buy less when the income rises c. consumers buy less when the price falls d.

Inverse market supply curve, The inverse market demand curve for a good is ...

The inverse market demand curve for a good is p = 100? 0.25Q. the inverse market supply curve for the good is p = 20 + 0.55Q. Calculate the equilibrium price and quantity, consumer

#title., .Clearly explain how net foreign investment links the market for l...

.Clearly explain how net foreign investment links the market for loanable funds and the market for foreign currency exchange. Make sure you define net foreign investment in your an

Indicate the beginnings, Which of the following would indicate the beginnin...

Which of the following would indicate the beginnings of an expansion of the economy? a. Fewer new firms are started. b. Stock market prices decline c. Consumer confidence improves

Reciprocal demand, what are the factors effecting reciprocal demand?

what are the factors effecting reciprocal demand?

E.., law of indefference curve

law of indefference curve

Government subsidy, A government subsidy to the producers of a product: ...

A government subsidy to the producers of a product: A. reduces product supply. B. increases product demand C. increases product supply. D. reduces product demand.

.Exam Question, If a country allows trade and, for a certain good, the dome...

If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price. A) the country will be an exporter of the good. B) the country

GDP, Calculate the marginal cost and marginal analysis for the following ta...

Calculate the marginal cost and marginal analysis for the following table. Calculate the answers and insert them into the shaded cells. Units Produces Cost per Unit Total Cost Ma

Economy could become stuck, According to Keynes, the economy could become s...

According to Keynes, the economy could become stuck at a low income level if: A. aggregate demand and aggregate supply are independent of one another. B. declines in aggregate dema

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