(Market Equilibrium). Aggregate market supply and demand for good Y are the following:
Qd (P)=10,368/P
Qs (P)=24P+576
Hint 1: Solve for a quadratic in P (i.e., You will then need to either factor the quadratic or use the quadratic formula to solve this problem x=(-b±√(b^2-4ac))/2a
Hint 2: You will get two possible equilibrium prices. You want a positive price since prices must be positive.
1. Calculate the equilibrium price and quantity.
2. Does the market demand function follow the law of demand at the equilibrium price? EXPLAIN
3. Does the market supply function follow the law of supply at the equilibrium price? EXPLAIN
4. Is there a surplus or shortage at the equilibrium price? EXPLAIN
5. Calculate the surplus or shortage when the price is $8
(Market Equilibrium). Aggregate market supply and demand for good Y are the following:
Qd (P)=10,368/P
Qs (P)=24P+576
Hint 1: Solve for a quadratic in P (i.e., You will then need to either factor the quadratic or use the quadratic formula to solve this problem x=(-b±√(b^2-4ac))/2a
Hint 2: You will get two possible equilibrium prices. You want a positive price since prices must be positive.
1. Calculate the equilibrium price and quantity.
2. Does the market demand function follow the law of demand at the equilibrium price? EXPLAIN
3. Does the market supply function follow the law of supply at the equilibrium price? EXPLAIN
4. Is there a surplus or shortage at the equilibrium price? EXPLAIN
5. Calculate the surplus or shortage when the price is $8
