In NEED of Economics HELP!!!!!!?

Question

I have a very confusing teacher and he has presented us with 7 questions that none of the class has been able to answer. He won't assist us saying this should be easy for us. Can anyone out there help?????? Is there anyone out there really good???

Nate Can you help with this??

Suppose the demand and supply curves are given by Qd=50 - P and Qs =1/2P -10

a) are these equations consistent with the laws of demand respectively? Explain?
b)solve for the equilibrium price and quantity in the market, show your work
c)determine the quantity demanded, quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in the market. show work
d) determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in the market. show work

This question was asked from a friend of mine. I am not a student. Thank you for helping with number 1 she only has 6 more to go. I believe the class started last month. I guess I am not sure which to show her with the two differing.

Answer 1

I am an Economics major and I am really good. Seriously. I'll be happy to help... as long as you give me 10 points for my assistance. Of course, it would help if you either posted the questions or emailed them to me.

My notations ` and ^ are only for differentiating our new equations with the originals. You don't have to include them on the work you turn in.

a) I’m not sure where he’s going with this question. I would say yes but I’m not sure. You may want to ask your Prof about this one. If I get a flash of insight I will ammend my answer but the others are very straight forward.

b) This one is very easy. You know that the equilibrium price is found where the quantity supplied equals the quantity demanded. So, all you have to do is set Qs=Qd and solve for P.

50-P = .5P-10
50=1.5P-10
60=1.5P
P=40

So, 40 is the market equilibrium price because at 40 dollars, the quantity supplied equals the quantity demanded.

c) Well, we know that the price floor, is higher than our market equilibrium price of 40 bucks so you have to calculate the Qd and the Qs at 42 dollars independently and then measure the difference. Basically,

Qd`=50-P
Qd`=50-42
Qd`=8
So, at a price floor of $42, only 8 units are supplied.
Do the same thing for Qs.
Qs`=.5P-10
Qs`=.5(42)-10
Qs`=11

So the surplus is Qs`-Qd` or 11-8=3

d) Same thing with this one only we have a price ceiling instead of a price floor:

Qd^=50-P
Qd^=50-30
Qd^=20
So, at the price ceiling of 30 bucks, the market demands 20 units. This makes sense, right. Since the good is cheaper, the market wants more.

Do the same thing with the quantity supplied.
Qs^=.5P-10
Qs^=.5(30)-10
Qs^=15-10=5

The market wants 20 units but suppliers are only willing to supply 5 at the price of 30 dollars. So there is a shortage of 15.

I hope that helped. If you are struggling with simple econ problems like these your teacher sucks. I would suggest reading the text book and seeking an econ tutor.

Answer 2

I'll give you a start (Nate is probably sleeping!)

Qd is the quantity demanded. The law of demand is that the demand curve is downward sloping. In the demand equation this would mean an inverse or negative relation with price. We see that is true in the equation since the coefficient of P is negative (and equal to -1). That is the -P you see in the demand equation.

The supply curve also follows the laws of supply. It is upward sloping and has a positive relation with price. i.e 1/2 P (1/2 is positive)

To get equilibrium, set Qd = Qs, that is, the quantity demanded equal to the quantity supplied. You will get:

50 - P = 1/2 P - 10. Then solve for P, using simple algebra, and you will get the equilibrium price.

-P -1/2 P = -10 -50

-1.5P = -60

P = 40

Substitute the value you get for P in either the demand or supply equation and you will get the equilibrium quantity.

To find surplus and shortage, try substituting the value given to you by your teacher for P in each of the demand and supply equations to get a separate value for Qd and Qs and subtract them. One should give you the surplus and the other, the shortage.

And for god's sake, pay attention in class!

Answer 3

YES!!!! [e-mail] Please email this weekend. Im trying to help my son in HS take a freshman college course in HS and its been awhile to say the least. Thanks!

Answer 4

I'll try...