Very simple micro-economic problem, please help?
Let’s say the demand curve is the following: P[Qd]=100-10(Qd) and the supply decision the firm faces is: P[Qs]=25+6(Qs). What are the equilibrium price, consumer surplus, and producer surplus, and welfare? Remember that parentheses denote multiplication.
Update:thanks for the input simpliticus, Isaid it is a very simple problem because I am aware it's easy. I am just a slow learner. You did not actually answer my question, but thanks anyway.
Comments
If it is so simple, why are you asking?
At equilibrium, P[Qd] = P[Qs] and Qd = Qs
The rest is elementary algebra.
1) b, i'm positive a hundred% she finds that the advantage outweighs the cost 2) actual seventy five% it seems proper 3) not certain, guess d 10% no clue 4) false, constructive one hundred% if there are more substitutes that means more competition therefore the cost is extra elastic 5) real, a hundred% constructive draw the curves, MC is below AVC handiest when AVC is falling 6) False a hundred% accounting profit does no longer comprise implicit charges thus fiscal revenue will customarily be cut back, that you may have 0 econ revenue but confident accounting profit 7) c a hundred% it might only go up