For unlimited access to Class Notes, a Class+ subscription is required.
This preview shows half of the first page of the document.Unlock all 2 pages and 3 million more documents.
Consider a market characterized by the following inverse demand and supply functions:
Px = 40 - 4Qd/x and Px = 10 + 2Qs/x
Determine the following:
Equilibrium price
Equilibrium quantity
Consumer expenditures
Consumer surplus
Producer surplus
The demand curve for product X is given by QXd = 400 - 2PX.
a. Find the inverse demand curve. PX = 200 - 0.5QXd Instructions: Round your answer to the nearest penny (2 decimal places). b. How much consumer surplus do consumers receive when Px = $40? $ c. How much consumer surplus do consumers receive when Px = $30? $ d. In general, what happens to the level of consumer surplus as the price of a good falls? The level of consumer surplus "increases" as the price of a good falls.
Home's demand curve for wheat is P = 40 - 1/2 (QD) and supply is p = 10 + 1/2 (QS)
Determine the price of wheat in the absence of trade and economic surplus ( consumer surplus and producer surplus).
