Answer to Question #147335 in Economics of Enterprise for Inaya Singh

Question

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.

Answer 1

Dear Inaya Singh, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order