Suppose that the market demand curve is $p = 30 - 2 x$ and the market supply curve is $p = X$ .
a.Calculate the equilibrium price and output level.
b.Suppose a price floor of 16 is imposed in this market.What is the new equilibrium quantity transacted in the market?
c.How does the price that firms receive -- net any additional marginal effort costs they incur -- compare to the price consumers pay?
d.What is the total cost of the additional effort firms have to exert in equilibrium?

Question

Suppose that the market demand curve is $p = 30 - 2 x$ and the market supply curve is $p = X$ . 
a.Calculate the equilibrium price and output level.
b.Suppose a price floor of 16 is imposed in this market.What is the new equilibrium quantity transacted in the market?
c.How does the price that firms receive -- net any additional marginal effort costs they incur -- compare to the price consumers pay?
d.What is the total cost of the additional effort firms have to exert in equilibrium?

Quizplus · Accepted Answer

The Answer of Suppose that the market demand curve is $p = 30 - 2 x$ and the market supply curve is $p = X$ . 
a.Calculate the equilibrium price and output level.
b.Suppose a price floor of 16 is imposed in this market.What is the new equilibrium quantity transacted in the market?
c.How does the price that firms receive -- net any additional marginal effort costs they incur -- compare to the price consumers pay?
d.What is the total cost of the additional effort firms have to exert in equilibrium?

Suppose That the Market Demand Curve Is p=30−2xp = 30 - 2 xp=30−2x

Suppose That the Market Demand Curve Is $p = 30 - 2 x$