1 / 6

# - PowerPoint PPT Presentation

10.1 Suppose the daily demand curve for flounder at Cape May is given by Q D = 1,600 – 600P where Q D is demand in pounds per day and P is price per pound. If fishing boats land 1,000 pounds one day, what will the price be?

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

## PowerPoint Slideshow about '' - star

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

10.1 Suppose the daily demand curve for flounder at Cape May is given by

QD = 1,600 – 600P

where QD is demand in pounds per day and P is price per pound.

• If fishing boats land 1,000 pounds one day, what will the price be?

• If the catch were to fall to 400 pounds, what would the price be?

• Suppose the demand for flounder shifts outward to

QD = 2,200 – 600P

10.6 Suppose there are 100 identical firms in the perfectly competitive notecard industry. Each firm has a short-run total cost curve of the form:

STC = 1/300 q3 + 0.2q2 + 4q + 10

and marginal cost is given by

SMC = .01q2 + .4q + 4

a. Calculate the firm’s short-run supply curve with q (the number of crates of notecards ) as a function of market price (P).

b. Calculate the industry supply curve for the 100 firms in this industry.

• Suppose market demand is given by Q = -200P + 8,000. What will be the short-run equilibrium price-quantity combination?

d. Suppose everyone starts writing more research papers and the new market demand is given by Q = -200P + 10,000. What is the new short-run price-quantity equilibrium? How much profit does each firm make?
{"found_math": false, "script_math_tex": 0, "script_math_asciimath": 0, "math_annotations": 0, "math_alttext": 0, "mathml": 0, "mathjax_tag": 0, "mathjax_inline_tex": 0, "mathjax_display_tex": 0, "mathjax_asciimath": 0, "img_math": 0, "codecogs_latex": 0, "wp_latex": 0, "mimetex.cgi": 0, "/images/math/codecogs": 0, "mathtex.cgi": 0, "katex": 0, "math-container": 0, "wp-katex-eq": 0, "align": 0, "equation": 0, "x-ck12": 0, "texerror": 0}