# HHello me in my assignment. 9) MARKET EQUILIBRIUM Suppose the demand for a product is given by p = d(q) = -0.4q + 300 and

HHello me in my assignment. 9) MARKET EQUILIBRIUM

Suppose the demand for a product is given by p = d(q) = -0.4q + 300 and the supply for the

same product is given by p = s(q) = 0.2q. For both functions, q is the quantity and p is the price, in

dollars.

a. Find the equilibrium point. (i.e. the market demand quantity and the market price)

b. Find the consumer surplus at the equilibrium price.

c. Find the producer surplus at the equilibrium price. 5. Suppose the firm’s production function is (1 = SOVLK. a. In the short run, the ﬁrm’s capital is fixed at 10 units. is the equation of the ﬁrm’s short run demand for labor? How much labor would the firm hire to produce 500 units of output? How much labor would the ﬁrm

hire to produce 1,000 units of output? How much labor would the ﬁrm hire to produce 1,500 units of output? b. Derive the ﬁrm’s long run input demand functions for (i) labor and (ii) capital, in terms of output and input prices. To fund the demand equations, solve the ﬁrm’s cost minimizing problem generalizing the price of labor

as w and the price of capital as r. (b) The demand function of the company that make refrigerator is given by

P = D(Q) = 36 – 4Q

where P is the unit price in ringgit and Q is the quantity demanded in units of a

thousand. The supply function for these refrigerator is given by

P = S(Q) = 6+Q

where P stands for the unit price in ringgit Q stands for the number of refrigerator

that the supplier will put on the market, in units of a thousand.

Determine the consumers’ surplus and the producers’ surplus if the market price of

a refrigerator is set at the equilibrium price.

[8 marks] Question 3 [Marks: 25! (1.3.1 The monetary transmission mechanism can be depicted in the form of a graph [1D]

or using symbols. Explain, with the aid of symbols, the monetary transmission mechanism when

interest rates increase

[Note: Prices and wages are variable} (1.3.2 Explain, using the All—AS model, how the South African Government can use [15]

fiscal policy as a tool to recover from the negative effects of this CUVID—lﬁ pandemic. lI"our answer must include the following: i The description of the type of fiscal policy required; {4} C An explanation of how the implementation of this tool will work their way

through the economy to achieve the desired effect; {5} i The AD—AS graph showing the implications of your recommendations. [5] Marks will be awarded for your ability to integrate theory with the scenario provided. l. The following table shows a ﬁlm’s input, output and oosts in the short run. The price of each unit of output is

H.200. (All costs and prices are in Tk.) Labor Quantity of Variable Total

input Ouggut cost cost

0 O 0 500 l 4 20 520 2 S 40 540 3 13 60 560 4 19 80 580 5 26 100 600 a) is the AF C of the ﬁrm when it employs l worker? b) is the MC of the 2nd worker? c) is the proﬁt when the ﬁrm employs 3 workers? (1) is the MP of the 4′” worker? 6) Does this ﬁrm follow the law of diminishing marginal productfreturns, explain. 2. State the characteristics with an example of all the market structures discussed in class.

## How it Works

1

It only takes a couple of minutes to fill in your details, select the type of paper you need (essay, term paper, etc.), give us all necessary information regarding your assignment.

2

Once we receive your request, one of our customer support representatives will contact you within 24 hours with more specific information about how much it'll cost for this particular project.

3

After receiving payment confirmation via PayPal or credit card – we begin working on your detailed outline, which is based on the requirements given by yourself upon ordering.

4

Once approved, your order is complete and will be emailed directly to the email address provided before payment was made!