Suppose that the market supply for frozen yogurt in small ville is given by Q’s=2+p. The market demand for frozen yogurt is given by p=25-1.5Q
\n(a) find the equilibrium price and quantity
\n(b) graph the curves and label correct intercepts, slope and equilibrium values
\n(C) given a price of $12 is being regulated by the government, what Was will occur in the market? Calculate the values and show on a graph<\/p>\n
(a) To find the equilibrium price and quantity, we need to set the market supply and demand equations equal to each other and solve for Q and p:<\/p>\n
Q’s = Q’d
\n2 + p = (25 – 1.5Q)
\n1.5Q + p = 25 – 2
\n1.5Q + p = 23
\np = 23 – 1.5Q<\/p>\n
Substituting this expression for p into the supply equation:<\/p>\n
Q’s = 2 + 23 – 1.5Q
\n2.5Q = 25
\nQ = 10<\/p>\n
Substituting this value for Q into either the supply or demand equation:<\/p>\n
p = 23 – 1.5(10)
\np = 8<\/p>\n
Therefore, the equilibrium price is $8 and the equilibrium quantity is 10 units of frozen yogurt.<\/p>\n
(b) To graph the supply and demand curves, we can use the equations we found in part (a):<\/p>\n
Market supply: Q’s = 2 + p
\nMarket demand: p = 25 – 1.5Q<\/p>\n
To find the intercepts, we set Q or p equal to zero:<\/p>\n
Market supply intercepts:
\nQ’s = 2 + p = 0 when p = -2
\nQ’s = 2 + p = 0 when Q’s = -2<\/p>\n
Market demand intercepts:
\np = 25 – 1.5Q = 0 when Q’s = 16.67
\np = 25 – 1.5Q = 0 when p = 25<\/p>\n
To find the slopes, we can rearrange the equations into slope-intercept form:<\/p>\n
Market supply: Q’s = -2 + 1p, with a slope of 1
\nMarket demand: p = 16.67 – 0.67Q, with a slope of -0.67<\/p>\n
We can now plot the supply and demand curves on a graph, labeling the intercepts and slopes, and showing the equilibrium price and quantity:<\/p>\n
Frozen Yogurt Graph<\/p>\n
(c) If the government sets a price ceiling of $12, this means that the price cannot exceed $12 in the market. To determine the new equilibrium quantity, we can set the demand equation equal to $12 and solve for Q:<\/p>\n
p = 25 – 1.5Q
\n12 = 25 – 1.5Q
\n1.5Q = 13
\nQ = 8.67<\/p>\n
This means that at a price of $12, the market demand is for 8.67 units of frozen yogurt. However, the market supply at a price of $12 is:<\/p>\n
Q’s = 2 + p = 2 + 12 = 14<\/p>\n
This means that at a price of $12, the market supply is for 14 units of frozen yogurt. Since demand is less than supply, there will be a surplus of frozen yogurt in the market.<\/p>\n
We can show this on a graph by drawing a horizontal line at a price of $12, and then finding the points where this line intersects with the supply and demand curves:<\/p>\n
Frozen Yogurt Graph with Price Ceiling<\/p>\n
As we can see from the graph, the quantity demanded at a price of $12 is less than the quantity supplied, so there is a surplus of 5.33 units of frozen yogurt in the market.<\/p>\n","protected":false},"excerpt":{"rendered":"
Suppose that the market supply for frozen yogurt in small ville is given by Q’s=2+p. The market demand for frozen yogurt is given by p=25-1.5Q (a) find the equilibrium price and quantity (b) graph the curves and label correct intercepts, slope and equilibrium values (C) given a price of $12 is being regulated by the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[210,215,212,220,219,209,222,213,211,214,45,218,216,221,208,217],"tags":[232,229,230,224,228,236,233,235,226,234,225,227,223,231],"class_list":["post-597","post","type-post","status-publish","format-standard","hentry","category-1-assignment-help-online-service-for-students-in-the-usa","category-ai-plagiarism-free-essay-writing-tool","category-australian-best-tutors","category-best-trans-tutors","category-buy-essay-uk","category-can-someone-write-my-assignment-for-me","category-cheap-dissertation-writer","category-do-my-essay-assignment","category-help-me-write-my-dissertation","category-help-with-writing-an-essay","category-homework-for-you","category-help-write-my-paper-ai-free","category-online-essay-writers","category-phd-essays","category-write-my-assignment-help-for-college-students","category-write-my-essay-for-me","tag-apa-citation-format-assignment","tag-assignment-help-by-uks-no-1-writing-service","tag-assignment-writers-australia-college-student","tag-assignment-writers-canada-university-cost","tag-assignment-writers-china-english-free-ai","tag-buy-essay-usa","tag-help-write-a-page-assignment","tag-i-need-someone-to-do-my-assignment-within-hours","tag-in-page-paper-write-an-essay","tag-need-to-write-an-essay","tag-professional-assignment-writers-usa","tag-uae-1-cheap-assignment-writing-service","tag-write-a-word-essay","tag-write-pages"],"_links":{"self":[{"href":"https:\/\/www.colapapers.com\/essays\/wp-json\/wp\/v2\/posts\/597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.colapapers.com\/essays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.colapapers.com\/essays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/essays\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/essays\/wp-json\/wp\/v2\/comments?post=597"}],"version-history":[{"count":0,"href":"https:\/\/www.colapapers.com\/essays\/wp-json\/wp\/v2\/posts\/597\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.colapapers.com\/essays\/wp-json\/wp\/v2\/media?parent=597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.colapapers.com\/essays\/wp-json\/wp\/v2\/categories?post=597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.colapapers.com\/essays\/wp-json\/wp\/v2\/tags?post=597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}