Chapter%202

# Chapter%202 - 1 Suppose the market for a good is expressed...

This preview shows pages 1–2. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1) Suppose the market for a good is expressed as follows: Inverse demand: P = 200 - 2Q Inverse supply: P = 2Q What is the equilibrium if the government imposes a supply quota of 75 units? What is the equilibrium if the government imposes a supply quota of 25 units? 2) Suppose the market for potatoes can be expressed as follows: Supply: QS = - 20 + 10p Demand: QD = 400 - 20p If the government sets a maximum price of \$10 per unit, what will be the quantity demanded and quantity supplied? 3) Calculate the market supply curve if 20 producers have the first inverse supply curve, and 25 producers have the second inverse supply curve. P = -50 + 25*Qs (20 producers) P = -25 + 75*Qs (25 producers) Now calculate the market supply curve if 20 producers have the first inverse supply curve, and 25 producers have the second inverse supply curve. P = 50 + 25*Qs (20 producers) P = 25 + 75*Qs (25 producers) 4) During the winter of 1997-1998, the northeastern United States experienced warmer than usual conditions. The During the winter of 1997-1998, the northeastern United States experienced warmer than usual conditions....
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

Chapter%202 - 1 Suppose the market for a good is expressed...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online