Answer to Question #240421 in Economics for Another you

Question

Assuming that the demand function for Good X is Q_d=80-P/2 and the supply function for Good X is Q_s=5+5P with a given prices. Make a demand and supply schedule to find the market equilibrium.

For Demand Schedule of Price:

a. 0

b. 4

c. 8

d. 12

e. 16

For Good X:

a. ?

b. ?

c. ?

d. ?

e. ?

Gor Supply Schedule of Good X:

a. ?

b. ?

c. ?

d. ?

e. ?

Answer 1

P, Qdx, Qsx

a. 0, 80, 5

b. 4, 78, 25

c. 8, 76, 45

d. 12, 74, 65

e. 16, 72, 85.

The market is in equilibrium at:

Qd = Qs,

80 - 0.5P = 5 + 5P,

5.5P = 75,

P = 13.64, Q = 73.18 units.