Market Mechanism
There is no content available!
To Access the full content, Please Purchase
-
Q1
If qD = 300 – p and qS = 220 + p, then equilibrium quantity is:
Marks:1Answer:
260
Explanation:
qD = 300 – p, qS = 220 + p.
At equilibrium qD = qS
300 – p = 220 + p
300 – 220 = p + p
80 = 2 p
p =80 /2 = 40
qD = 300 – 40 = 260 =qS
-
Q2
If qD = 100 p and qS = 20 + p, then excess demand can be expressed as
Marks:1Answer:
ED = 80 2p
Explanation:
ED = 100 p (20 + p)
= 100 20 2p
= 80 2p
-
Q3
If the expression for excess demand is ED = 280 2p and p = 40, then excess demand is
Marks:1Answer:
200
Explanation:
ED = 280 2p and p = 40,
ED = 280 2(40) = 200.
-
Q4
If quantity demanded is qD = 300 p and quantity supplied is qS = 20 + p, then excess supply is
Marks:1Answer:
ES = 2p 280
Explanation:
ES = 20 + p (300 p)
= 2p 280.
-
Q5
If the total output, q0 is 200 units and each firm is supplying, qf0 amount which is equal to 20 units at equilibrium price, the number of firm, n0 is equal to
Marks:1Answer:
10
Explanation:
n0 = q0 / qf0 =200/20 = 10.