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Suppose that demand and supply for textbooks can be described by the following equations:
 
Qs=150+2P
Qd=510-P
 
Where P is the price in dollars and Q is the quantity in units.
 
1. Determine algebraically the equilibrium price and quantity?
 
2.suppose that the price to be fixed at $110. Determine algebraically the surplus or shortage that would result?
 
3. Discuss the differences in elasticity of supply and elasticity of demand?

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Chika Ilonah
Chika IlonahLv10
28 Sep 2019

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Related questions

Assume that the current demand and supply curves for widgets can be expressed as:
Qd = 200 - 5P and Qs = 50 +10P, respectively, where P denotes the per-unit price of widgets in dollars, Qd is the quantity demanded of widgets in cases per week and Qs is the quantity supplied of widgets in cases per week.

a. the equilibrium quantity is 150 cases per week
b. the equilibrium price is $15
c. at a price of $12 a shortage would occur
d. all of the above
e. none of the above

calculate point price elasticity of demand at a price of 10 dollars. _____

calculate arc price elasticity of demand between a price of $6 and $12. ______

A. consider a demand curve of the form
Qd=-2p+20

where Qd is the quantity demanded of a good and P is the price ofthe good. 
Qs=2p-4

where Qs is the quantity supplied. Be sure to put P on the verticalaxsis. Assume that all the Qs and Ps are nonnegative for parts a,b, and c. At what vaules of P and Q do these curve intersect thatis, where does Qd=As

B. Now suppose at each price that individuals demand four moreunits of output--that the demand curve shift to Qd=-2p+24
Graph this new demand curve. At what values of P and Q does the newdemand curve intersect the old supply curve--that is, where does Qd=Qs

Supply and demand in a hypothetical market are given by the following equations:

Qs=-40+2P and Qd=200-P where P is the price in dollars.

Use these equations to find numeric answers for the six items below:

1. Equilibrium price

2. Equilibrium quantity

3. The minimum price that would have to prevail in order for any units to be supplied

4. The maximum price that anyone would pay for this good

5. The amount of a surplus that would arise at a price of $100

6. The amount of a shortage that would arise at a price of $50

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