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Suppose the supply curve for Budweiser is given by Qs = 73 + 5P and the demand curve is defined in question 

a) What is the equilibrium quantity and price for a bottle of Budweiser?

b) When the market price of Budweiser is $2, is the market in equilibrium/shortage/ surplus? Explain.

c) If the market is in shortage/surplus, what is the amount of the shortage/surplus? [Hint: determine the quantity demanded and quantity supplied when P=2, and calculate the difference].

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Nusrat Fatima
Nusrat FatimaLv10
28 Sep 2019

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Suppose demand and supply are given by Qd = 60 - P and Qs  = P - 20.

a. What are the equilibrium quantity and price in this market?

b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $52 is imposed in this market.

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suppose demand and supply are given by Qd= 60 -P and Qs= 1.0P -10
 
1. Find the equilibrium price and quantity
2. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $48 is imposed in this market.
3. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $25 is imposed in the market. Also, determine the full economic price paid by consumers.
The following graph shows the monthly demand and supply curves in the market for teapots.
 

Use the graph input tool to help you answer the following questions. Enter an amount into the Price field to see the quantity demanded and quantity supplied at that price. 

The equilibrium price in this market is $_____ per teapot and the equilibrium quantity is _____ teapots bought and sold per month.

Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus, and whether this places upward and downward pressures on prices.

Price ($ per teapot) Shortage / Surplus Shortage or surplus amount (teapots) Pressure
60      
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