Micro Econ HELP!

[CasperWho]

im stuck on a few questions..

1. if a demand and a supply curve can be stated functionally as Qd = 100 - 5P; and Qs = 90 + 5P respectibely, then the equalibrium quantity and price ( Q, P ) would be...

2. if a demand and a supply curve can be stated functionally as Demand: Qd = 500 - 13P
Supply: Qs = 60 + 1040P
then the equilibrium quantity and price (Q, P) would be...

3. Negativley sloaped =
a) less quantity demanded at higher prices
b) less quantity demanded at lower prices
c) less quantity demanded at same price

thanks!
:D

[CasperWho]

BUMP?

[ercchry]

damn not that far yet but it seems that most of these questions can be answered by graphing it out but that wouldnt get a exact answer is that all the info you have for three?

[Gainsbarre]

QUESTION 1

Set Qd = Qs and solve for p* (equilibrium price)

100 - 5p = 90 + 5p
100 = 90 +10p
10 = 10p
p* = 1

plug this into qither Qd or Qs to solve for q* (equilibrium quantity)

100 - 5(1) = 95 = q*

QUESTION 2

Same thing...might want to check to see if you've typed the question correctly, because the question has somewhat complicated numbers for an elementary micro question

500 - 13p = 60 +1040p
500 = 60 +1053p
440 = 1053p
(440/1053) = p*
q* = 500 - 13(440/1053)

QUESTION 3

it's a. Just draw the supply and demand curves on a graph with quantity on the y (vertical) axis and price on the x axis (horizontal)

[CasperWho]

Q 2 Answers could be

613, .53$

495, .60$

613, .43$

495, .42$

65, .42$

[Gainsbarre]

Ok, then what I typed up is correct.

q* = 500 - 13(440/1053) = 500 - 13(0.41785) = 500 - 5.4 = 495 (rounded)

and of course, p* = (440/1053) = 0.41785 or (rounded) $0.42

choice d

[CasperWho]

Thank u for helping explain aswell :thumbsup:

[hampstor]

wow, since when did econ201 get like this... all it used to be was listening to holden's stories.