If the market supply function of a commodity is Q s = 3,250 and (a) the market d
ID: 1092197 • Letter: I
Question
If the market supply function of a commodity is Qs = 3,250 and (a) the market demand function is Qd = 4,750 - 50P and P is expressed in dollars, use excel to calculate what the equilibrium price is by calculating values of Qd and Qs for P from 25 to 50 in 1's. (d) For (a) if TC= 0.005Q2-Q what is the profit in each case?
P QS QD Profit=TR-TC 25 3250 3500 31687.5 26 3250 27 3250 28 3250 29 3250 30 3250 31 3250 32 3250 33 3250 34 3250 35 3250 36 3250 37 3250 38 3250 39 3250 40 3250 41 3250 42 3250 43 3250 44 3250 45 3250 46 3250 47 3250 48 3250 49 3250 50 3250Explanation / Answer
P QS QD Profit=TR-TC 25 3250 3500 31687.5 26 3250 3450 34937.5 27 3250 3400 38187.5 28 3250 3350 41437.5 29 3250 3300 44687.5 30 3250 3250 47937.5 31 3250 3200 51187.5 32 3250 3150 54437.5 33 3250 3100 57687.5 34 3250 3050 60937.5 35 3250 3000 64187.5 36 3250 2950 67437.5 37 3250 2900 70687.5 38 3250 2850 73937.5 39 3250 2800 77187.5 40 3250 2750 80437.5 41 3250 2700 83687.5 42 3250 2650 86937.5 43 3250 2600 90187.5 44 3250 2550 93437.5 45 3250 2500 96687.5 46 3250 2450 99937.5 47 3250 2400 103187.5 48 3250 2350 106437.5 49 3250 2300 109687.5 50 3250 2250 112937.5