7/26/2019 Market system final questions 1.docx

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Questions Market system year 3

Product market set of equations :

Qd = -2p + 100

Qs = 50

1) Draw a diagram2) !a"cu"ate t#e equi"i$rium price and equi"i$rium quantit%&) !o"our + ca"cu"ate t#e producer and consumer surp"us') Qs c#anges Qs = '0 gi(e a possi$"e reason for t#is c#ange5) *p"ain w#at wi"" #appen to t#e producer surp"us,) !a"cu"ate t#e new equi"i$rium price and quantit%

ne of man% supp"iers on t#e market se"" t#is product.is maima" production capacit% = 10 products.is /ed costs are 5 .e pa%s 10 a product

) #at is t#e price #e se""s for) !a"cu"ate #is $reak-e(en point3) Draw a diagram wit# #is re(enue and cost cur(e10) !a"cu"ate #is maimum pro/t

Products market set of equations :

Qd = -05p + 5Qs = 15p -25

11) Draw a diagram12) !a"cu"ate equi"i$rium price and equi"i$rium quantit%1&) !o"our + ca"cu"ate t#e producer and consumer surp"us1') Qs c#anges Qs = 2p - &0 gi(e a possi$"e reason for t#is

c#ange15) *p"ain w#at wi"" #appen to t#e producer surp"us1,) !a"cu"ate t#e new equi"i$rium price and quantit%

!a"cu"ate t#e equi"i$rium q and p of t#e fo""owing set of equations :

1) Qd = -2p + 1000 4 Qs = 05p 2001) Qd = -2p + 30 4 Qs = 05p 20013) Qd = -100p +200 4 Q6 = 500p +100020) Qd = -p +10 4 Qs = &p -1021) Qd = -2p + 250 4 Qs = 100

7arket equi"i$rium in t#e oi" market :

8#e oi" price #as fa""en $% more t#an '09 since une ;t is now $e"ow our t#ings are now

e?ecting t#e picture Demand is "ow $ecause of weak economic acti(it%4

and a growing switc# awa% from oi" to ot#er fue"s 6econd4 turmoi" in ;raq

and @i$%a-two two $ig oi" producers- #as not a?ected t#eir output 8#ird"%4

America #as $ecome t#e wor"dBs "argest oi" producer 8#oug# it does not

eport crude oi"4 it now imports muc# "ess4 creating a "ot of spare supp"%

>ina"" t#e 6audis and t#eir Cu"f a""ies #a(e decided not to sacri/ce t#eir

7/26/2019 Market system final questions 1.docx

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#at #appens #ere can $e drawn in demand4 supp"% grap#s

22) se demand and supp"% cur(es to ep"ain w#at #appened to

t#e oi" price

2&) 6o"(e t#e demand equation

2') 6o"(e t#e supp"% equation

25) 6o"(e t#e demand equation2,) 6o"(e t#e supp"% equation