When launching any technology product, a firm such as GoPro must create a balance between what is technically possible and wheth
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Answer:
1) Attached
2) 150-3p = 3p-30
3) P=30, Q=60
4) 150-3p = 3p-90
5) P=40 and Q=30
6) Ps=Pd+10
7) P=35, Q=45
8) P=45, Q=45
Explanation:
We can write the equation for the quantity demanded as:
And the equation for the quantity supplied as:
1) Attached
2) The equilibrium price can be calculated by making the quantity supplied equal to quantity demanded:
3) The equilibrium price is P=30.
The equilibrium quantity can be calculated as:
The equilibrium quantity is Q=60.
4) The supply now becomes:
The equation for the new equilibrium price is:
5) The new equilibrium is at p=40 and Q=30
6) They will receive
7) In this case, the quantity supplied becomes:
The new price equilibrium becomes P=35:
The quantity for this equilibrium is Q=45:
8) Now, the equations for demand and supply are:
The equilibrium price and quantity becomes:
Your <em>question is not clear enough</em>. However it could be inferred you want details plotted out of the supply and demand schedule as outlined in attached image.
<u>Explanation:</u>
- From the information in the attached image only a price of $4 brings supply and demand into equilibrium, with an equilibrium quantity of 2.
- Also at a price of $4, consumer surplus is $4 and producer surplus is $4. Total surplus is $4+$4=$8.
- The law of diminishing returns applies here and so If Ernie produced one fewer bottle, his producer surplus would decline to $3. If Bert consumed one fewer bottle, his consumer surplus would decline to $3. So total surplus would decline to $3+$3=$6.
- Finally, when Ernie produced one additional bottle of water, his cost would be $5, From Ernie's supply schedule and Bert's demand schedule, the quantity demanded and supplied is only $4, so his producer surplus would decline by $1. If Bert consumed one additional bottle of water, his value would be $3, but the price is $4, so his consumer surplus would decline by $1. So total surplus declines by $1+$1 = $2.
