Find equilibrium price and equilibrium quantity
Course:- Business Economics
Reference No.:- EM13887766

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

Robinson's demand for pineapples is given as Q = 40 - 4P while Friday's is Q = 20 - P. Supply is given as Qs = 6 + P, and Pc = $1.

Find equilibrium price, equilibrium quantity, and the amounts Robinson and Friday will both end up consuming.

Then- suppose Rob and Fri are actually dealing with a public good like fireworks (# of rockets) and they must consume the same quantity. Efficiency requires Robinson's willingness to pay + Friday's willingness to pay must = MRT. What is the new efficient Q, and what will Rob and Fri now each be willing to pay?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Suppose there are two types of customers for a cell phone service: undergraduates (U) and grad Students (G). The aggregate (inverse) demand curve for undergraduates is PU = 10
On October 4, 1996, Tenet Healthcare Corporation, the second-largest hospital company in the United States at that time, announced that it would buy Ornda Healthcorp.† what wo
If banks desire to increase their lending, but the Federal Reserve is not adding reserves to the banking system, what will happen to the level of short term interest rates?
The minimum price at which a few of the producers are willing to sell a pound of cheese is $0.06, and the price floor is set at $0.17 per pound. With the price floor at $0.17
Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related. Explain how sellers' costs, producer surplus, and the supply curve are related.
The year is 2035. In many occupations, robots are replacing humans. As it turns out, robots make very good house cleaners, but very poor ski instructors. Assuming the other de
Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 8.8%, and the MPC is 0.75. How much money should the government spend to eliminate this GDP loss? 
Jim Dandy had a very? short, but? illustrous, football career. The best news is that he thought about saving some of his earnings. Jim was able to save ?$22,750 each year duri