Question #142329

17. Given the following supply and demand equations

QD = 100 – 5P

QS = 10 + 5P

a) Determine the equilibrium price and quantity.

b) If the government sets a minimum price of $10 per unit, how many units would be supplied and how many would be demanded?

c) If the govt. sets a maximum price of $5 per unit, how many units would be supplied and how many would be demanded?

d) If the demand increases to

Q’D = 200 – 5P

Determine the new equilibrium price and quantity.

QD = 100 – 5P

QS = 10 + 5P

a) Determine the equilibrium price and quantity.

b) If the government sets a minimum price of $10 per unit, how many units would be supplied and how many would be demanded?

c) If the govt. sets a maximum price of $5 per unit, how many units would be supplied and how many would be demanded?

d) If the demand increases to

Q’D = 200 – 5P

Determine the new equilibrium price and quantity.

Expert's answer

a) "QD=QS" ; "100-5P=10+5P" ; "P=9;Q=55"

b) "QD=50;QS=60"

c) "QD=75;QS=35"

d) "200-5P=10+5P" ; "P=19;Q=105"

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