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Supply and demand. I am having trouble with these for some reason?

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9. You’re given the following supply and demand tables:

Demand Supply

P Q P Q

$ 0 1,200 $ 0 0

2 900 2 0

4 600 4 150

6 300 6 300

8 0 8 600

10 0 10 600

12 0 12 750

14 0 14 900

a. What is equilibrium price and quantity in a market system with no interferences?

b. If this were a third-party-payer market where the consumer pays $2, what is the quantity demanded? What is the price charged by the seller?

c. What is total spending in the two situations described in a and b?

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2 ANSWERS


  1. a. the equilibrium price is 6 at which the demand is equal to supply i.e. 300=300 and total spending is 1800

    elaborate more about part b


  2. a supply equals demand  at $8 and 600 total spending=$4800

    b  If the consumer pays $2 the demand is 900 and the   for 900   the seller will charge $14 Total spending =$14*900=$12600

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