Describe the market demand curve algebraically

Reference no: EM13698879

There are two types of customers in a market for sheet metal. Let P represent the market price.

The total quantity demanded by Type I consumers is Q1 = 100 - 2P, for 0< P < 50.

The total quantity demanded by Type II consumers is Q2 = 40 - P, for 0< P < 40.

Describe the market demand curve algebraically. In other words, show how the quantity demanded in the market Q depends on P.

If the price of a sheet metal is $30, what is the consumer surplus in each market segment?

Reference no: EM13698879

Questions Cloud

Will free movement of labor have similar effect on real wage : Consider again the two countries in the previous question. Suppose the U.S. and Mexico do not trade goods at all, but workers can move freely between them. Will free movement of labor have a similar effect on real wages as free trade of goods? Explai..

Process by which this market returns to long-run equilibrium : Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. Explain the following situations graphically a..

What does the taylor rule imply that policymakers : What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?

Equilibrium wage and employment if the market is free : Suppose the labour market in the house cleaning industry in Quebec City can be described by the following demand and supply equations: LD = 400 - 10w and LS = 40 + 20w. Calculate the equilibrium wage and employment if the market is free.

Describe the market demand curve algebraically : There are two types of customers in a market for sheet metal. Let P represent the market price. Describe the market demand curve algebraically. In other words, show how the quantity demanded in the market Q depends on P.

Calculate money supply-monetary base-currency deposit ratio : Suppose that currency in circulation is $500 billion, the amount of checkable deposits is $1,000 billion, excess reserves are $150 billion, and the required reserve ratio on checkable deposits is 10%. Calculate the money supply, the monetary base, th..

How many must be sold for the publisher to break even : The publisher of a new book figures fixed cost at $92,000 and variable cost at $2.10 for each book produced. If the book is sold to distributors for $15 each, how many must be sold for the publisher to break even?

Technological advance reduces the cost of making computers : Suppose a technological advance reduces the cost of making computers. Draw a supply and demand diagram to show what happens to price, quantity, consumer surplus (CS), and producer surplus (PS) in the market for computers.

Compare and contrast the global marketing strategies : Compare and contrast the global marketing strategies of Samsung, Sony and Phillips after listing two or three elements of each company's global marketing strategy.

User Account

All Pages