The General Demand and Supply Functions for Good a Are $\begin{array} { l } Q _ { d } = 52.50 - 2.0 P + 0.0150 M + 7.00 P _ { R } \\ Q _ { s } = - 500.0 + 8.0 P\end{array}$

question 2

Short Answer

The general demand and supply functions for good A are estimated to be, respectively: $\begin{array} { l } Q _ { d } = 52.50 - 2.0 P + 0.0150 M + 7.00 P _ { R } \\ Q _ { s } = - 500.0 + 8.0 P\end{array}$ where $Q _ { d }$ is quantity demanded per month, $Q _ { s }$ is quantity supplied per month, P is price of good A, M is average household income, and $P _ { R }$ is the price of a related good R Assume the following values of the shift variables: M = $42,500, and $P _ { R }$ = $30.
a. The equation for INVERSE demand is _________________________.
b. The maximum price at which 500 units of good A can be sold is ____________.
c. The minimum price producers will accept to supply 500 units of good A is ________.
d. If price is $150, ______________ (a shortage, a surplus, equilibrium) occurs of ___________ units of good A.
e. The market clearing price of good A is $__________.

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Definitions:

Learned Helplessness

A condition where a person suffers from a sense of powerlessness, arising from traumatic events or persistent failure to succeed.

Depression

An emotional wellness issue where an individual experiences constant feelings of sadness or has a diminished interest in activities, significantly affecting their daily living.

Seligman

A psychologist known for his work in positive psychology and the theory of learned helplessness.

Julian Rotter

A psychologist from the United States who is recognized for creating the theory of social learning and the idea behind locus of control.