Supply & Demand - Equilibrium Quantity & Price
Not what you're looking for?
Suppose demand and supply are given by Qd = 50 - P and Qs = 1/2P - 10
a) What are the equilibrium quantity and price in this market?
b) Determine the quantity demanded, the quantity supplied, and the magnitude of surplus if a price floor of $42 is imposed in this market.
c) Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in this market. Also determine the full economic price paid by consumers.
Purchase this Solution
Solution Summary
The supply and demand for equilibrium quantity and price. A complete, neat and step-by-step solutions are provided.
Solution Preview
Qd = 50 - P and Qs = 0.5P - 10
(a) Qd = Qs
50 - P = 0.5P - 10
1.5P = 60
P = ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.