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jalen

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Suppose the demand curve for apples is P=800-2Qd. Where P is the price per pound(in cents) of an apple and Qd is the quantity demanded per year(in millions of pounds). Suppose that the supply curve for apples is: p=-300+3Qs. Where P is the price per pound(in cents) of an apple and Qs is the quantity supplied per year(in millions of pounds).

a) Calculate the equilibrium quantity and price of apples.

800-2Q=-300+3Q

1100=5Q

Q=220

Demand: 220=800-2Qd

-580=-2Qd

Qd=290

Supply: 220=-300+3Qs

520=3Qs

Qs=173

Please check if my calc are correct =)

b)Suppose the government puts in a price floor of $4.50 per pound on apples. How big will the surplus of apples be? Show your work.

I'm not sure about this question...would you just make the $4.50 equal to one of the above equations?

c)Suppose the government puts in a price ceiling of $2.50 per pound on apples. How big will the shortage of apples be? Show your work.

...and same thing for this one?

a) Calculate the equilibrium quantity and price of apples.

800-2Q=-300+3Q

1100=5Q

Q=220

Demand: 220=800-2Qd

-580=-2Qd

Qd=290

Supply: 220=-300+3Qs

520=3Qs

Qs=173

Please check if my calc are correct =)

b)Suppose the government puts in a price floor of $4.50 per pound on apples. How big will the surplus of apples be? Show your work.

I'm not sure about this question...would you just make the $4.50 equal to one of the above equations?

c)Suppose the government puts in a price ceiling of $2.50 per pound on apples. How big will the shortage of apples be? Show your work.

...and same thing for this one?

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