ECN 100B Study Guide - Final Guide: Demand Curve, Siriusxmu, Deadweight Loss

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turquoisegnu128

12 Oct 2018

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Suppose that the short-run world demand and supply elasticities for crude oil are. The current price per barrel is and the short-run equilibrium quantity is 23. 84 billion barrels per year. If the demand curve is linear, it is in the form of qd = a + bp also, we know that. Rearranging the linear expression for demand allows us to solve for a as follows: a = qd - bp a = 23. 84 + 0. 060(30) = 25. 640. We may now write the linear expression for demand as. If the supply curve is linear, it is in the form of. Also, we know that e = d (p/q) d = e (q/p) = 0. 088 (23. 84/30) = 0. 070. Rearranging the linear expression for demand allows us to solve for c as follows: c = qs - dp c = 23. 84 - 0. 070(30) = 21. 740. We may now write the linear expression for supply as.

Related Questions

Suppose that the world price of oil is roughly $80 per barrel and that the world demand and total world supply of oil equal 34 billion barrels per year (bb/yr), with a competitive supply of 20 bb/yr and 14bb/yr from OPEC. Statistical studies have shown that the short-run price elasticity of oil demand is -0.05, and the short-run competitive price elasticity of supply is 0.10. Using this information, derive linear demand and competitive supply curves for oil.

Let the demand curve be of the general for Q=a-bP and the competitive supply curve is of the general form Q=c+dP, where a, b, c, and d are constants.

The equation for the long-run demand curve is: Q= ______

The equationfor the long-run competitive supply curve is: Q= ______

whitecricket809

Suppose that the world price of oil is roughly $80 per barrel and that the world demand and total world supply of oil equal 34 billion barrels per year (bb/yr), with a competitive supply of 20 bb/yr and 14bb/yr from OPEC. Statistical studies have shown that the short-run price elasticity of demand for oil is -0.05, and the short-run competitive price elasticity of supply is 0.10. Using this information, derive linear demand and competitive supply curves for oil.

Let the demand curve be of the general for Q=a-bP and the competitive supply curve be of the general form Q=c+dP, where a, b, c, and d are constants.

The equation for the long-run demand curve is: Q= ______

The equation for the long-run competitive supply curve is: Q= ______

ceruleanswan259

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Suppose that the world price of oil is roughly $80 per barrel and that the world demand and total world supply of oil equal 34 billion barrels per year (bb/yr), with a competitive supply of 20 bb/yr and 14bb/yr from OPEC. Statistical studies have shown that the short-run price elasticity of demand for oil is -0.05, and the short-run competitive price elasticity of supply is 0.10. Using this information, derive linear demand and competitive supply curves for oil.

Let the demand curve be of the general for Q=a-bP and the competitive supply curve is of the general form Q=c+dP, where a, b, c, and d are constants.

The equation for the short-run demand curve is: Q= ______

The equationfor the short-run competitive supply curve is: Q= ______

pucecricket328

ECN 100B Study Guide - Final Guide: Demand Curve, Siriusxmu, Deadweight Loss

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