Economics Answers

The demand and supply function of a good are given by

P = -3Qd +100

P =2Qs +50

Where p, Qd and Qs denotes the price, quantity demanded and quantity supplied respectively.

A. Calculate the equilibrium price and quantity.

A new fixed tax of £5 per good imposed by the government.

B. Calculate the new equilibrium price and quantity?

C. Who pays the tax?

Given the above demand equation if fixed costs are 15 and variable costs are 40 per unit.

D. Obtain and expression for profit in term of Q.

E. Sketch a graph for profit against quantity.

F. Find the breakeven point.

G. Find the quantity of products sold that given a profit of 42.

H. Find the maximum profit and the value of Q at which it is achieved.

Qd = 100 – 5P and Qs = –20 + 3P. If the price is R10, then there will be a shortage of

The demand and supply function of a good are given by

P = -3Qd +100

P =2Qs +50

Where p, Qd and Qs denotes the price, quantity demanded and quantity supplied respectively.

Calculate the equilibrium price and quantity.

What three problems must the economy system solve

Given the demand for a product as Qd = 90 - 7P and the supply is given as Qs = -60 + 8P. You are told equilibrium is obtained at the point where Qd = Qs. The equilibrium price for the product is

d = 26 - 8P and the supply is given as Qs = -16 + 6P. You are told equilibrium is obtained at the point where Qd = Qs. The equilibrium quantity for the product is 

Qd(=50-8P) and Qs(=17.5+10P)

The production possibility curve represents?

If a 5 per cent fall in the price of bananas results in a 2 per cent increase in the quantity of bananas demanded, then the price elasticity of the demand for bananas is relatively low.

A. True

B. False

explain two reasons in favour of price gouging