Find quantity supplied and quantity demanded, Business Economics

Assignment Help:

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?


Related Discussions:- Find quantity supplied and quantity demanded

Baumol''s, the basic assumption of the static model

the basic assumption of the static model

Explain and evaluate the rational expectations theory, QUESTION (a) Exp...

QUESTION (a) Explain and evaluate the rational expectations theory. (b) What is the major argument of the supply side economists in relation to taxation policy? How is it di

Assignment, Assignment on discounting principle

Assignment on discounting principle

What are institutions, What are institutions? Institutions are formal ...

What are institutions? Institutions are formal organisations as like: • Government : the group of some people and institutions who control and manage a country Civic socie

Market economy, 1. How would you describe a market economy? 2. What disti...

1. How would you describe a market economy? 2. What distinguishes a market economy from a command economy? 3. Is there a role for government intervention in the Australian econ

Importance of non profit organisations, (a) Show the importance of Non Pro...

(a) Show the importance of Non Profit Organisations in Small Island Economies. (b) Show the importance of Foreign Direct Investment in Small Island Economies. Comment on th

How external trade promote economic development and growth, How can externa...

How can external trade promote economic development and growth? International trade permits increased specialisation than higher output permits economies of scale. • A big m

Production, The factors that affect the volume of production in economics

The factors that affect the volume of production in economics

Economic order quantity, A manufacturing company has determined from an an...

A manufacturing company has determined from an analysis of its accounting and production data for a certain part that : a. Its demand is 9000 units per annum and is uniform

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd