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":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3704,3706,3705,3708,3703,3707,3709,3702],"tags":[387,1887,3718,3721,3711,3719,3710,3717,3722,3715,3716,3714,3677,3681,2035,3713,3724,3723,3285,3712,3720,2436,3325,3680],"class_list":["post-8693","post","type-post","status-publish","format-standard","hentry","category-1-cheap-nursing-assignment-help-writing-services-uk","category-buy-college-essays-paper-writing-service-nursing-essay-writing","category-essay-help-online-fast-and-affordable-essay-writer","category-essay-on-nursing-online-essay-writer-help-for-cheap","category-essay-writing-service-best-essay-writer-online","category-nursing-academic-help-writers-nursing-essay-writer","category-nursing-admission-essay-writers-online-cheap-nursing-writing","category-nursing-essay-writers-online-custom-essay","tag-buy-essay","tag-cheap-essay-writers","tag-custom-essay","tag-dissertation-help-tiktok","tag-dissertation-ideas","tag-dissertation-topic","tag-essay-topics","tag-free-essays","tag-get-assignments-done","tag-help-in-assignment","tag-help-with-class","tag-i-need-help","tag-i-need-help-writing-my-homework","tag-page-paper","tag-phd-essay-writers","tag-research-paper-samples","tag-research-paper-writing-service-for-any-topic","tag-study-essay","tag-term-paper","tag-thesis-examples","tag-thesis-writers","tag-write","tag-write-a-paper","tag-write-my-assignment-ireland"],"_links":{"self":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/8693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/comments?post=8693"}],"version-history":[{"count":0,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/8693\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/media?parent=8693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/categories?post=8693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/tags?post=8693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}