I would greatly appreciate a systematic approach on how I should attack this information. I'm not sure what I'm solving for or what is simply given.
we have charted a demand curve D1 whose equation is Q = 27 - 3P. The equation for the supply curve S1 is Q = -5 + 5P. The resulting equilibrium price is $4 and quantity is 15 units (point 1).8 If we chart another, considerably more elastic, demand curve, D2, of the form Q = 55 - 10P, with the same supply curve, the equilib- rium point will be the same, Q = 15, and P = 4. Now, let us say that supply increases, and the supply curve S2 is of the form S = 0 + 5P. With the new supply curve, the equilibrium points for the two demand curves will no longer be the same. With D1 the price will be $3.375 and quantity 16.875 units (point 2). However, with D2 the result will be P = 3.667 and Q = 18.333 (point 3). The more elastic demand curve, D2, has resulted in a smaller price decrease but a larger quantity increase than D1, the less elastic curve.
I would greatly appreciate a systematic approach on how I should attack this information. I'm not sure what I'm solving for or what is simply given.
we have charted a demand curve D1 whose equation is Q = 27 - 3P. The equation for the supply curve S1 is Q = -5 + 5P. The resulting equilibrium price is $4 and quantity is 15 units (point 1).8 If we chart another, considerably more elastic, demand curve, D2, of the form Q = 55 - 10P, with the same supply curve, the equilib- rium point will be the same, Q = 15, and P = 4. Now, let us say that supply increases, and the supply curve S2 is of the form S = 0 + 5P. With the new supply curve, the equilibrium points for the two demand curves will no longer be the same. With D1 the price will be $3.375 and quantity 16.875 units (point 2). However, with D2 the result will be P = 3.667 and Q = 18.333 (point 3). The more elastic demand curve, D2, has resulted in a smaller price decrease but a larger quantity increase than D1, the less elastic curve.
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Related questions
Who bears the primary costs of a rent control program?
| A. | landlords | |||||||||||||
| B. | renters that get rent-controlled apartments | |||||||||||||
| C. | taxpayers | |||||||||||||
| D. | the wealthy Assume the demand for sushi is Qd = 180 - 3P, where Qd is quantity demanded and P = price in dollars. The supply of sushi is Qs = 80 + 5P, where Qs is quantity supplied (and P is, again, price in dollars). A price of $20 would result in:
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US agricultural price supports are politically popular because
| A. | They have no adverse impacts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| B. | The US would have food shortages without them | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| C. | The benefits accrue to a large number of voters and the costs are paid by a small number of voters | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| D. | The costs are spread out among millions of people Assume the demand for sushi is Qd = 180 - 3P, where Qd is quantity demanded and P = price in dollars. The supply of sushi is Qs = 80 + 5P, where Qs is quantity supplied (and P is, again, price in dollars). What would be the equilibrium price?
Price floors and ceiling prices:
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