Suppose that the demand and supply curve for a good are...

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PROBLEM SET ONE ECN 100 DUE THURSDAY OCTOBER 10 1. Suppose that the demand and supply curve for a good are given by Q 0 =1,000/P and = lOP. a. What is the equilibrium price and equilibrium quantity? b. Explain what is happening in the market at a price of c. Explain what is happening in the market at a price of $20. 2. The market for cod liver oil pills is characterized by the following demand and supply equations: = 100 - 4P and Q5 = -20 + 2P, where P is the price per bottle and quantity of bottles. a. What is the equilibrium price and quantity? b. If consumers want to purchase 60 more bottles at any given price, what is the new equilibrium price and quantity? 3. In the market for goodX, demand is Q 0 = 6,000- 0.8P and supply is Q5 = 0.4P- a. What is the equilibrium price and quantity? b. Solve for the inverse demand and inverse supply equations. c. Suppose that an increase in consumer income makes consumers willing to pay $500 more per unit of good X. Also, a technological breakthrough in production Q5 $2. Q is the 300.

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