8. Consider the following table that shows the supply and demand for haircuts: Price (dollars per haircut) Quantity demanded Quantity supplied 0 100 0 10 80 20 20 60 40 25 50 50 30 40 60 40 20 80 50 0 100 What is the quantity of haircuts bought, the value of a haircut, and the total surplus from haircuts? Suppose that all salons agree to charge $40 a haircut. How do consumer surplus and producer surplus change? What is the deadweight loss created? 4. Consider the following supply and demand for computers: Price 100 80 50 30 10 0 D = MB S=MC 20 30 50 70 Quantity What is equilibrium price and quantity? What is consumer, producer, and total surplus? Consider the government imposes a $20 per unit tax on computers and the new supply and demand curves are:
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Use the supply and demand schedules below to answer the following questions: Price Quantity Demanded Quantity Supplied $10 100 20 15 80 40 20 60 60 25 40 80 30 20 100 Enter your answers as a whole number. A. What is the equilibrium price and quantity? Market equilibrium price $________ Market equilibrium quantity _________ units B. What is the market price if there is a shortage of 40 units? $___________ C. At a price of $25, the market experiences a (shortage or surplus) of ____________ units
Crystal W.
The market demand and market supply functions for a product are given by the following equations. QD = 100 – 3P QS = 10 + 2P Where, QD is the quantity demanded, QS is the quantity supplied and P is the price of the product a) Does the market exhibit an excess demand or excess supply at the prices 10 and 20? Explain. (1 mark) b) Draw the market demand and market supply curves for the product on a diagram (1 mark) c) What are the equilibrium price and equilibrium quantity of the product?
Aparna S.
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