h8 - The Colorado College Department of Economics and...

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1 The Colorado College Department of Economics and Business Block 7 Econ 207 HW 8. 1. The demand curve for flounder at Cape May is given by Q D = 1600 – 600P where Q D is the quantity demanded and P is the price per pound. The supply by fishermen at Cape May is given by Q S = -1000 + 2000P for Qs 0 where Q S is the quantity supplied in pounds and P is the price per pound. (a) What is the lowest price at which flounder will be supplied to the Cape May market? (b) Given the demand curve for flounder, what will the equilibrium price be? (c) Suppose now the demand shifts to Q D = 2200 – 600P What will be the new equilibrium price? (d) Graph your result using a supply-demand framework. (4x2.5 = 10 points) 2. Wheat is produced under perfectly competitive conditions. Individual wheat farmers have U-shaped long-run average cost curves that reach a minimum average cost of $3 per bushel when 1000 bushels are produced (a) If the market demand curve for wheat is given by Q D = 2,600,000 – 200,000P
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This homework help was uploaded on 04/19/2008 for the course EC 207 taught by Professor Ghosh during the Spring '08 term at Colorado College.

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h8 - The Colorado College Department of Economics and...

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