ECON 212 Quiz: ECON 212quizquiz1a.w06

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turquoisegnu128

31 Jan 2019

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Setting and supply curves and then substituting that back in place of p into either supply or demand equation gives the equilibrium quantity expression as given below. At the market equilibrium, what is the price. For u =4, the indifference curve, is given by d = 1-(1/4)q for d,q >= 0: [2 marks] bicycle frames and tires: a consumer always wants two tires(t) to go with one frame(f). With u = 4, the corner of indifference curve is at (t,f)= (4,2) [2 marks] suppose that a consumer, john, buys two goods, a and b with his income. The price of a is , the price of b is and john"s income is $ 60. Draw and appropriately label john"s budget constraint given above information. Now suppose that john finds a deal some where in the market, so that he can buy first five units of good.

Related Questions

Suppose there are 8,000 identical individuals in a market for LatinDance videos, each with a demand function represented byQdx=12-2Px, and 400 identical producers of Latin Dance videos, each with a supply function of Qsx=10Px.

- What is the market demand and market supply function for LatinDance videos?

- How do I obtain the market equilibrium price and quantity using algebra?

-Derive the market demand and market supply schedule for dance videos at prices ranging from $1 to $6 and sketch the market demand and market supply curves and label the equilibrium price and quantity.

- Use the Demand equation to find the price elasticity of demand. Is the price elasticity demand elastic or inelastic?

- Interpret the elasticity of demand and state by how much quantity in demand would fall if the price for dance videos would increase by2%.

taupecat982

Assume that the demand for iron (the primary component of steel) is Q = P^(-a)? , where the exogenous parameter a>0 takes some fixed value. For all parts assume that the iron market is in equilibrium. You should simplify your answers as much as possible.

(a) Find the inverse demand curve for iron.

(b) Does the demand for iron satisfy the Law of Demand?

(c) What is the elasticity of demand for iron, as a function of Q and the parameter a? For parts (d)-(f) assume that a=2 and the supply of iron is Q = 8P.

(d) What are the equilibrium price and quantity of iron? If the value of a is unknown, then what are the equilibrium price and quantity as functions of a?

(e) Draw a picture that shows the supply and demand curves (including two exact points on each curve) and the equilibrium.

(f) Suppose that? increases from its initial value of a=2. Does this represent an increase or decrease in demand; supply; quantity supplied; and quantity demanded?

For parts (g) and (h) continue to assume that a=2, but now assume that supply increases to Q = 9P.

(g) Find the new equilibrium price and quantity. Draw a new picture, showing the old (assuming Q=8P) and the new demand and supply curves and equilibria. Label the old equilibrium

rubyhippopotamus955

Question 1:

A local market for clay bricks has weekly demand described by P=1.59-0.0075Q and supply described by P=0.21+0.0014Q. Calculate the equilibrium quantity?

Question 2:

Demand for a good is given by P=34-2Q. The supply curve is given by P=19+3Q. Calculate the equilibrium price?