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Unformatted text preview: 4. The demand function (from all buyers combined) is Q d = _ 600 _ - __ 100 P. 5. What is the equilibrium price of yam sauce? __$5.00_ 6. In the market equilibrium, what is the total consumer surplus? ___$50___ 7. In the market equilibrium, what is the total producer surplus? ___$100___ 8. Suppose that bread and butter are compliments . If the price of bread increases, them we would expect the equilibrium price of butter to go __ down _ (up, down) and the equilibrium quantity of butter to go __ down_ ___(up, down). In the market for green fuzz, quantity supplied and quantity demanded are given by: Q s = 5P 50 and Q d = 400 10P. 9. If the current price of green fuzz is $20, there is an excess __ demand _ (supply, demand) of __ 150 __ 10. On the blank graph below, draw the supply and demand curves. Label the equilibrium price and quantity, and the excess supply or demand at P =$20....
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This note was uploaded on 08/03/2010 for the course ECON 1 taught by Professor Bergstrom during the Summer '07 term at UCSB.
- Summer '07
- Consumer Surplus