ECON 101 Quiz: ECON 101 UW Madison Quiz3Summer2015withSolutions

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turquoisegnu128

31 Jan 2019

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Please write your answers neatly and legibly: consider the market for bicycles in zeeland, a small, closed economy. Zeeland can be described by the following demand and supply curves where p is the price per bicycle and q is the quantity of bicycles: Domestic demand for bicycles: p = 500 5q. Domestic supply of bicycles: p = 100 + 15q: (1 point) determine the equilibrium price and quantity for bicycles in zeeland given the above information. Show your work for full credit and put your answers in the provided spaces. To find the equilibrium price and quantity set the demand equation equal to the supply equation: Plug this quantity into either the demand equation or the supply equation to find the equilibrium price: P = 500 5q = 500 5(20) = per bicycle. Or, p = 100 + 15q = 100 + 15(20) = per bicycle.

Related Questions

Can someone show me how to get the answers on this. I am at a total loss.

1. A perfectly competitive industry has demand curve: P = 100 - .5Q, where Q is total output produced. All firms in the industry have identical technology and face the same cost curve: C(Q) = 500 + 10Q + 0.5Q2 . There are 10 firms in the industry.

a. Derive the supply curve for a typical firm in the industry.

b. Derive the industry supply curve.

c. Find the equilibrium price and quantity.

d. How much profit is the typical firm making?

e. Is this a short run or long run equilibrium? Explain in words and illustrate using graph(s).

If demand for show tickets is described by the equation QD = 100 - p, and supply is QS = 20 + p, find the equilibrium price and quantity. How would your answer change if the supply curve shifted to Q= 10 +p due to increases in actor salaries? What would the S supply curve look like if the capacity of the theatre was 50 people?

cyanferret224

Assume that the demand for iron (the primary component of steel) is Q = P^(-a)? , where the exogenous parameter a>0 takes some fixed value. For all parts assume that the iron market is in equilibrium. You should simplify your answers as much as possible.

(a) Find the inverse demand curve for iron.

(b) Does the demand for iron satisfy the Law of Demand?

(c) What is the elasticity of demand for iron, as a function of Q and the parameter a? For parts (d)-(f) assume that a=2 and the supply of iron is Q = 8P.

(d) What are the equilibrium price and quantity of iron? If the value of a is unknown, then what are the equilibrium price and quantity as functions of a?

(e) Draw a picture that shows the supply and demand curves (including two exact points on each curve) and the equilibrium.

(f) Suppose that? increases from its initial value of a=2. Does this represent an increase or decrease in demand; supply; quantity supplied; and quantity demanded?

For parts (g) and (h) continue to assume that a=2, but now assume that supply increases to Q = 9P.

(g) Find the new equilibrium price and quantity. Draw a new picture, showing the old (assuming Q=8P) and the new demand and supply curves and equilibria. Label the old equilibrium

rubyhippopotamus955

ECON 101 Quiz: ECON 101 UW Madison Quiz3Summer2015withSolutions

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