Demand Is Represented by the Equation, P = 200 -

question 30

Essay

Demand is represented by the equation, P = 200 - 2QD and supply by the equation P = 25 + 3QS.(a) Suppose this market produces 30 units of output.What price would this output be sold at if consumers we going to buy all goods? What is the marginal benefit to society of the 30^th unit? What is the marginal cost of the 30^th unit?
(b) What is consumer surplus if the market produces 30 units of output? What is producer surplus? What is the sum of consumer and producer surplus?
(c) What are the equilibrium price and quantity?
(d) What is consumer surplus at equilibrium? What is producer surplus? What is the sum of consumer and producer surplus?
(e) Is allocative efficiency achieved when the market produces 30 units of output? Explain in three different ways.

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Definitions:

Investment Account

A financial account held by an investment dealer that a client uses to keep and trade investment securities.

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control.

Investor's Share

The portion of profits or losses attributed to an investor, based on their ownership percentage in an investment.

Other-Than-Temporary

A classification for a decline in the value of an investment or asset when the loss is not expected to be recovered in the short term, often requiring the asset to be written down to its reduced value permanently.