Imagine the market for Good X has a demand function of QDX = 40 – PX and a supply function of QSX = 2PX – 20. Suppose the current price of Good X (PX) is 30. Calculate consumer surplus (CS).
Q: Find the consumer's surplus at P=2 for the following demand function: P=8Q-2/3
A: (Q) Find the consumer's surplus at P=2 for the following demand function: P=8Q-2/3
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A: We are going to fins the Equilibrium and a social welfare to answer this question.
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A: Answer to the question is as follows :
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A: We are going to fins the Equilibrium and a social welfare to answer this question
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Imagine the market for Good X has a
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- Consider the demand function D(p) = 99.0 - 4.0p. When the price changes from p1 = 4.0 to p2 = 8.0, what is the change in the consumer's surplus? Give your answer to one decimal. 1300Given the supply and demand functions of good p = x3 + 2xs + 12 p = -x3 – 4xp + 68 Calculate the equilibrium price of the good. Answer:Find the consumer's surplus at P=2 for the following demand function: P=8Q-2/3
- Good A (an inferior good) and Good B (a normal good) are viewed by consumers to be substitute products. Suppose that the price of Good B falls at the same time that consumer income increases. What is the net effect of these two events on equilibrium in the market for Good A? an increase in equilibrium quantity and an indeterminate effect on price a decrease in both the equilibrium price and quantity an indeterminate effect on quantity but an increase in price an increase in both the equilibrium price and quantityAn economist has estimated that the demand function for cars is approximately D = −400P + 4I where I is the mean household income. The Supply of cars is estimated to be S = 2p (a) What is the equilibrium price of cars (it will be a function of I)?(b) How does the equilibrium price of cars change when I changes?In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qda = 0.3N + 0.05PT -0.02PH. Initially, average consumer income is N = $50,000 and the average price of townhouses is $290,000. Making these substitutions, we get Qda = 29,500 - 0.02PH. This is our current demand equation. Suppose N = 50,000 and PH = 230,000. If the price of townhouses decreases from $290,000 to $255,000, what is the cross-price elasticity of demand for housing? i Click the icon to view the derivation of the current demand equation. The cross-price elasticity of demand for housing when N = 50,000, PH = 230,000, and the price of townhouses decreases from $290,000 to $255,000 is Ea b This is Single detached homes and townhouses are (Round to two decimal places as needed.) perfectly elastic. elastic. unit elastic. perfectly inelastic. inelastic.
- Suppose the demand and supply of tea are modeled by the two following functions: Q = 8P + 11 Q = -65P+ 109 What is the equilibrium price of tea? Round your answer to two places after the decimal point (0.01).In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qd = 0.3N + 0.08PT - 0.02PH. Initially, average consumer income is N= $50,000 and the average price of townhouses is $315,000. Making these substitutions, we get Qd = 40,200 – 0.02PH: This is our current demand equation. Suppose income changes from $50,000 to $60,000. What is the income elasticity of demand for housing when the price is $220,000? Click the icon to view the derivation of the current demand equation. The income elasticity of demand for housing when the price is $220,000 and income changes from $50,000 to $60,000 is EN = |. This is Housing is good. (Round to two decimal places as needed.) perfectly inelastic. perfectly elastic. inelastic. elastic. unit elastic.When the income of buyers of good X rises the equilibrium price of good X will (assume X is a normal good):
- Suppose that the demand for a good is described by the inverse demand function p = 10 - 3q and the supply of the good is given by the inverse supply function p = 2 + 2 q: Q: What price will the buyers pay (use one decimal point)? Pb= [x]Suppose the market for X has a demand function of QDX = 1000 – PX − 2PY + 0.2M and a supply function of QSX = 4PX – 500, where PX is the price of Good X, PY is the price of Good Y, and M is the average consumer income. If PY is $50, and M = $1,000, find the equilibrium price of Good X.Suppose the demand function is linear. At p = 8, quantity demanded is Q = 16. At p = 15, quantity demanded is Q = 10. For the price increase from 8 to 15, the loss in consumer surplus due to fewer goods being purchased is -- surplus due to a higher price on the goods still purchased is and the loss in consumer
