Find quantity supplied and quantity demanded, Business Economics

Find quantity supplied and quantity demanded:

Suppose there are 300 used cars, with 3 quality levels: bad, medium, and good.  A seller knows the quality of his car but a buyer does not.  The only thing buyers know is that 100 of all used cars are bad, 100 medium, and 100 good.  The values of each type of car to a seller and a buyer are: 

1015_Find quantity supplied and quantity demanded.png

a)  Let P denote the price of a used car.  Find quantity supplied (Q ) and quantity demanded (Qd) of cars if P ≥ 3000. 
b)  Find Qs and Qd if 2000 ≤ P < 3000.
 
c)  With quantity (Q) on the horizontal axis and price (P) on the vertical, draw the supply curve for cars.  Then draw the demand curve assuming that there is an infinite number of buyers.  Label the curves and key points in your graph clearly.
 
d)  In equilibrium, what is the price and quantity of cars?  What kind(s) of cars are traded?

Posted Date: 2/13/2013 12:37:51 AM | Location : United States







Related Discussions:- Find quantity supplied and quantity demanded, Assignment Help, Ask Question on Find quantity supplied and quantity demanded, Get Answer, Expert's Help, Find quantity supplied and quantity demanded Discussions

Write discussion on Find quantity supplied and quantity demanded
Your posts are moderated
Related Questions
MBA - MACROECONOMICS ASSIGNMENT Professor Instructions Abide by following points or no credit will be given for your answers: • Concise and to-the-point answersare what

How is the installation and commissioning affects the IS project? Installation and commissioning: This stage of a project is frequently either forgotten or underestimated

Define the implications of dependency problem. Implications of dependency problem: To escape exploitation, underdeveloped countries should gain political, economic and so

Define advocates of the International Monetary Fund argue. Advocates of the International Monetary Fund (IMF) argue • Competitive devaluations were a characteristic of the i

How is Gross Domestic Product capturing the economic dimension of human well-being? GDP (Gross Domestic Product) only captures the economic dimension of human well-being. All c

QUESTION Organisations have long been concerned with attracting and retaining talented employees. The primary reason is that they depend on the skills and talent of their workf

PRICE ED OF DOVE SOAP IS GRATER THAN BATHING SOAP IN GENERAL.. GIVE REASON. AN WHAT U ANALYIS

Quantitative demand for watermelons = 50-3P(wm) - 20P(hd) + 10 P(sc) + 0.001(income) P(wm) = $4.00 P(hd) = $3.00 P(sc) = $2.00 Income = $40,000 Quantity supply of watermelons = 2

Development Strategies are explained as follows: Keeping the reasons for the persistent poverty in the LICs aside, there are three broad progress strategies which have been ado

Calculate the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.