Surpluses at the equilibrium position, Econometrics

The inverse demand and supply functions for a product are given as:

2438_123.png


 where P  is  price, Q  is  quantity  and  the  subscripts  d  and  show demand and supply, respectively.
 
(a)  Determine the equilibrium price and quantity.

(b)  Using the definite integral, calculate the consumer and producer surpluses at the equilibrium position.

(c)  Give your answers to part (a) and (b) on an appropriate diagram.

 

Posted Date: 3/25/2013 5:25:33 AM | Location : United States







Related Discussions:- Surpluses at the equilibrium position, Assignment Help, Ask Question on Surpluses at the equilibrium position, Get Answer, Expert's Help, Surpluses at the equilibrium position Discussions

Write discussion on Surpluses at the equilibrium position
Your posts are moderated
Related Questions
Question 1: Explain the main drivers of globalisation and ascertain whether they have helped to reduce the gap between the rich and the poor countries. Question 2: Disc

Suppose you have a model of capital investment by a U.S. rm. Imagine that yt, x1t and x2t are annual measures of investment, lagged pro t, and lagged capital stock, all in real do

Profit maximization is theoretically the most sound but practically unattainable objective of business firms. In the light of this statement critically appraise the Baumol’s sales

Determine the  four  stationary  points  of  the  function  Z= 2x 3 +y 3 -18x -12y +50 according to whether they define a maximum, minimum, or saddle point.


The following regression was estimated to explain the inflation rate in the USA.  The data set contains annual observations from 1970 to 2010.       Inft  =  2500 +   50*Xt  +

Consider the study of the effect of public-sponsored training programs. As argued in public programs of training and employment are designed to improve participant's productive ski



Popularity vs. True Quality What determines the popularity of YouTube videos? Are the most viewed videos really the ones people like the most? What drives people choose certain