Command Economy Vs. Market Economy
The advantages and disadvantages of a free-market economy:
Through free market concepts such as price signal and opportunity cost, the free market supplies a
method of pricing resources witho
Exercise three (Class #3)
P = 100 - Q (Demand)
P = 20 + 3Q (Supply)
a) Given the above demand and supply equations for the pesticide product, Kill-Them-All, first find
the equilibrium price and quantity (quantity is in 10,000 bags).
Qd = 100 Q = 20 + 3Q =
Economic analysis day 1
2 types of economies:
The command system (Communism)
Efficiency (when economy has biggest size of pie, a sizable economy)
4 Market Failures:
1. Public goods
Suppose that the market demand curve is given by Qd = 100 2P and the market supply curve is given by Qs = 3P.
a) What are the consumer and producer surpluses?
b) What is the deadweight loss that would result if the government were to institut