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 $__________.

Question

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 $__________.

Quizplus · Accepted Answer

The Answer of 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 $__________.

The General Demand and Supply Functions for Good a Are Qd=52.50−2.0P+0.0150M+7.00PRQs=−500.0+8.0P\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}Qd​=52.50−2.0P+0.0150M+7.00PR​Qs​=−500.0+8.0P​

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