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If a firm faces the demand curve P = 60 - Q and the price is $30, the consumer surplus is:

a.

200

b.

300

c.

450

d.

650

3. If the demand curve is P = 60 - Q and the supply curve is Q = P, the market equilibrium output is:

a.

45

b.

30

c.

60

d.

15

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Yusra Anees
Yusra AneesLv10
28 Sep 2019

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Related questions

3. Demand, Supply, consumer surplus, and Market Equilibrium. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum
QD + 92 - 2Px (Demand)
QS = -16 + Px (Supply)
where Q is a quantity measured in pounds of scrap aluminum and P is the price in dollars.
Complete the following table:
A.
What is the condition for market equilibrium?
B
Calculate the market equilibrium price and equilibrium output?
C.
What is the inverse demand curve P = f (QD)?
D.
Compute the consumer surplus at the equilibrium price.
E.
What is the inverse supply curve P = f (Qs)?
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Compute the producer surplus at the equilibrium price.

A firm faces the demand function Qd = 60 - P and the cost function C = 11Q2 +5. (a) What is the optimal quantity that a price-taking (and profit-maximizing) firm should supply?

(b) What is the profit when the quantity produced is optimal?

(c) Construct a graph showing the demand curve, the MR curve, the MC curve, and the AC curve. Show the equilibrium point (where Q is optimal); indicate the point's coordinates (i.e. P* and Q*). Show in the graph the area that corresponds to profit.

Suppose that the demand for broccoli is given by:

Demand: Q= 1,000 - 5P

Where Q is quantity per year measured in hundreds of bushels and P is price in dollars per hundred bushels. The long-run supply curve for broccoli is given by

Supply: Q= 4p - 80

A) Show that the equilibrium quantity here is Q=400. At this output, what is the equilibrium price? How much in total is spent on broccoli? What is consumer surplus at this equilibrium? What is producer surplus at this equilibrium?

B) How much in total consumer and producer surplus would be lost if Q=300 instead of Q=400?

C) Show how the allocation of the loss of total consumer and producer surplus between suppliers and demanders described in part b depends on the price at which broccoli is sold. How would the loss be shared if P=140? How about if P=95?

D) What would the total loss of consumer and producer surplus be if Q=450 rather than Q=400? Show that the size of this total loss also is independent of the price at which the broccoli is sold.

E) Graph your results.

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