supply_demand_pract_sol - COMM295...

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

View Full Document Right Arrow Icon
UBC COMM 295 Solution to Practice Problems #1 SUPPLY AND DEMAND 1. Suppose there are two types of consumers in the market for computers: price sensitive  and non-price sensitive. The demand of price-sensitive consumers is given by P = 100  – 3Q and that of non-price sensitive consumers is given by P = 120 – 6Q.  a. Draw a diagram of the two demand functions. b. Find the total market demand function.  ( Hint: Solve the demand equations for Qs and then add the two Qs to find the total  demand function. Note that this demand function is valid for 0 < P < 100. For 120 > P >  100, the market demand is that of non-price sensitive consumers only. ) 2.  In a crude oil market, there are two big suppliers each with supply function given by  P = 2Q and 4 small suppliers each with supply function given by P = 4Q. What is the  market supply function of crude oil?    
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/03/2011 for the course COMM 290 taught by Professor Brian during the Winter '09 term at The University of British Columbia.

Page1 / 2

supply_demand_pract_sol - COMM295...

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

View Full Document Right Arrow Icon
Ask a homework question - tutors are online