2.4 Suppose that the demand function for a product is Qd = 200/Pand the supply function is Qs = 2P.What is the equilibrium price and the amount bought and sold? Answer: The equilibrium price is $10. The equilibrium quantity that will be bought and sold is 20 units. Explanation: Solve = Qd QS. 200/P = 2P = 100 P2 = 10. P Therefore: = 200/10 = 20. Qd = 2(10) = 20. QS 2.5 The worldwide demand function for crude oil (in millions of gallons) is Qd = 17 - and the daily supply function is Qs - 1, where Pis the price per gallon. √P √P What is the equilibrium price of crude oil? What is the quantity bought and sold each day? Answer: The equilibrium price of crude oil is $81. The equilibrium quantity bought and sold each day is 8 million gallons. Explanation: Equate and Qd QS. . When = 81, P 2.6 Consider again the demand and supply functions in Worked-Out Problem 2.2 (page 31). Suppose the government needs to buy 3.5 billion bushels of corn for a third-world famine relief program. What effect will the purchase have on the
2.4 Suppose that the demand function for a product is Qd = 200/Pand the supply function is Qs = 2P.What is the equilibrium price and the amount bought and sold? Answer: The equilibrium price is $10. The equilibrium quantity that will be bought and sold is 20 units. Explanation: Solve Qd = QS. 200/P = 2P P2 = 100 P = 10. Therefore: Qd = 200/10 = 20. QS = 2(10) = 20. 2.5 The worldwide demand function for crude oil (in millions of gallons) is Qd = 17 - √P and the daily supply function is Qs √P - 1, where Pis the price per gallon. What is the equilibrium price of crude oil? What is the quantity bought and sold each day? Answer: The equilibrium price of crude oil is $81. The equilibrium quantity bought and sold each day is 8 million gallons. Explanation: Equate Qd and QS. . When P = 81, 2.6 Consider again the demand and supply functions in Worked-Out Problem 2.2 (page 31). Suppose the government needs to buy 3.5 billion bushels of corn for a third-world famine relief program. What effect will the purchase have on the
Solution-Manual-Microeconomics-2nd-Edition-Bernheim.docx