Exam 2: Demand, supply, and Market Equilibrium

Use the following general linear demand relation: where M is income and is the price of a related good,R.If M = $15,000 and = $20 and the supply function is ,then,when the price of the good is $40,

Which of the following will cause a change in quantity supplied?

Suppose the demand and supply curves for good X are both linear.The demand price for the first unit of X is $28,and the supply price for the first unit of X is $6.If the equilibrium price for good X is $16 and the equilibrium quantity of X is 24,000 units,then total consumer surplus is $________,total producer surplus is $_________,and total social surplus is $_____________.

Use the following general linear demand relation: where P is the price of good X,M is income,and is the price of a related good,R.What is the demand function when M = $50,000 and = $10?

Use the following demand and supply functions: Demand: Supply: If the price is currently $11,there is a

Use the following general linear supply function: where is the quantity supplied of the good,P is the price of the good, is the price of an input,and F is the number of firms producing the good.When = $40 and F = 50,the INVERSE supply function is

Use the following demand and supply functions: Demand: Supply: Let supply remain constant; an increase in income causes consumers to be willing and able to buy 220 more units at each price than they were previously.The new equilibrium price and quantity are

Use the following general linear supply function: where is the quantity supplied of the good,P is the price of the good, is the price of an input,and F is the number of firms producing the good.If = $20,F = 60,and the demand function is the equilibrium price and quantity are,respectively,

Use the following general linear demand relation: where P is the price of good X,M is income,and is the price of a related good,R.Income is $100,000,the price of the related good is $20,and the supply function is Q_s = 150 + 5P.What is the equilibrium price?

Increases in the wage rates of coal miners and decreases in the price of natural gas would cause the price of coal to

Scientists have developed a bacterium they believe will lower the freezing point of agricultural products.This innovation could save farmers $1 billion a year in crops now lost to frost damage.If this technology becomes widely used,what will happen to the equilibrium price and quantity in,for example,the potato market?

If a supply curve goes through the point P = $10 and = 320,then

Refer to the figure below: If price is $8,

Use the following demand and supply functions: Demand: Supply: Equilibrium price and output are

If the market price of eggs rises at the same time as the market quantity of eggs purchased decreases,this could have been caused by

Suppose there are only three consumers in the market for a good and each consumer will buy only one unit of the good.Their individual economic values for the good are $6,$8,and $12,respectively.If the market price for the good is $10,what is the total consumer surplus for the three buyers?

Refer to the figure below: Let demand remain constant at D; an increase in wages causes firms to be willing and able to sell 150 fewer units at each price than they were before the wage increase.

Use the following general linear demand relation: where P is the price of good X,M is income,and is the price of a related good,R.If income increases to $100,000 and the price of the related good is now $20,what is the demand function?

Use the following general linear demand function below: where Q_d = quantity demanded,P = the price of the good,M = income, = the price of a good related in consumption.For the general linear demand function given above

Use the following general linear demand function below: where Q_d = quantity demanded,P = the price of the good,M = income, = the price of a good related in consumption.If c = 15 and d = 20,the good is