Find the equilibrium price and quantity, economics, Microeconomics

Assignment Help:
1. Assume that the market for wheat is perfectly competitive. Suppose the demand curve for wheat is given by:

QD = 200 – 2P

where QD is the quantity demanded, in bushels, and P is the price, in dollars per bushel. Suppose that the supply curve is given by:

QS = P – 10,

for values of P greater than or equal to 10, where QS is the quantity supplied, and QS = 0 when P < 0.

(1) Find the equilibrium price and quantity of wheat. Draw them in a clearly marked diagram.
(2) Suppose that unfavorable weather conditions shift the supply curve to the left, by 5 bushes of wheat at each price. Again find the equilibrium price and quantity, and draw the new equilibrium on the diagram you constructed for part (1).

Related Discussions:- Find the equilibrium price and quantity, economics

Explain about natural monopoly, Q. Explain about Natural Monopoly? Natu...

Q. Explain about Natural Monopoly? Natural Monopoly: In some industries, economies of scale are so strong that it makes most economic sense for there to be just one supplier. T

Why government cannot print new currency to pay the debts, Why government c...

Why government cannot print new currency to pay the debts?  When there is deficiency of internal resources then government borrow. Government can borrow either from central ban

Effect of effluent fees on the firm input choices, The Effect of Effluent F...

The Effect of Effluent Fees on the Firms' Input Choices *  Firms which have a by-product to production produce an effluent. *  An effluent fee is a per unit fee which firms

Explain the different types of barriers that exist to trade, Problem 1: ...

Problem 1: i) To what extent can a country actually rely on the principle of Comparative advantage before engaging in international trade? ii) Explain the different types

Factors of production, The process of production needs several inputs. Thes...

The process of production needs several inputs. These inputs are known as the factors of production. In most cases, firms own some of the factors of production while some have to b

Marginal utility, prove that marginal utility of x=the price of commodity ...

prove that marginal utility of x=the price of commodity x.

Game theory, Characteristics of prisoners dilemma

Characteristics of prisoners dilemma

Question, Briefly discuss the components of macroeconomics system with suit...

Briefly discuss the components of macroeconomics system with suitable explanation

Price elasticities of demand, how to compute the price of a laptop increase...

how to compute the price of a laptop increase of 20% and there is a 40% drop in the aquantity demanded

Homework help question! , You have just been hired by your city’s departmen...

You have just been hired by your city’s department of health. Your first task is to use cost-benefit analysis to evaluate a smocking awareness program that the department has been

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