Siteadmin, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators
125,790
edits
Changes
Jump to navigation
Jump to search
Line 5:
Line 5: − +
Economics Homework Two - Model (view source)
Revision as of 19:33, September 20, 2009
, 19:33, September 20, 2009added answer
2. Suppose the price demand curve for a particular good is P = $30 - Q, where P is the price and Q is the quantity. Also suppose the price supply curve is P = $6 + Q. At which price and quantity will the good be sold (assuming a free market)?
2. Suppose the price demand curve for a particular good is P = $30 - Q, where P is the price and Q is the quantity. Also suppose the price supply curve is P = $6 + Q. At which price and quantity will the good be sold (assuming a free market)?
:
:Given: P= 30-Q; P= 6+Q. So, P=P, and 30-Q = 6+Q, which equals 12. So, Q=12. Inserting this answer back into the first original equation (P= 30-Q) gives me, P=18. '''So, the Quantity is 12 and the Price is $18.''' (Trisha)
3. When the '''''supply''''' of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil? Explain. When the '''''demand''''' for a good a good or service increases, such more people driving cars that need gasoline (refined oil), what happens to the market price of oil? Explain.
3. When the '''''supply''''' of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil? Explain. When the '''''demand''''' for a good a good or service increases, such more people driving cars that need gasoline (refined oil), what happens to the market price of oil? Explain.