Economics homework help PLEASE

Posted on 2014-03-14 09:50:00 in Economics by ROSIEBEE

Supply is given by the following equation:

QS = 10P - 70



Demand is given by the following equation:

QD = 122 - 6P



1. Find the equilibrium price and quantity. (2)



2. If the good was offered for free, how much would be consumed? (1)



2. If the price of the good falls below _________, firms will not be able to produce the good. (1)



3. If a $10 ceiling is imposed, find quantity demanded, quantity supplied, whether there will be a surplus or a shortage, and the size of the imbalance. (4)



3. Total revenue is equal to price times quantity. Find an equation for total revenue, using the demand equation above. (2)



4. Find total revenue at the market equilibrium. (1)



5. Graph the supply and demand curves. Clearly label values on both axes. Label the market equilibrium. (3)



6. Assume the market supply doubles. Write the new supply function. (2)



7. Find the new equilibrium price and quantity, using the supply function from #6. Round to the nearest penny for price. Round to the nearest whole number for quantity. (4)

---

Answer Comment

No Answers Posted Yet.