In the market for widgets, demand is represented by the following equation:   If you observe that 100 units are sold, what would you...

In the market for widgets, demand is represented by the following equation:

 

If you observe that 100 units are sold, what would you expect the price to be?

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In the market for widgets, supply is represented by the following equation:

If you observe that 100 units are sold, what would you expect the price to be?

 

Why are you certain that the equilibrium quantity in the market for widgets is not 100 units?

 

 

In the market for widgets, demand is given by:

And supply is given by:

What is the equilibrium price?

 

In the market for widgets, demand is given by:

And supply is given by:

What is the equilibrium quantity?

Note: Do not adjust your answer to thousands. For example, if you get 200 as your answer, enter in "200" and not "200,000". 

 

 

In the market for widgets, demand is given by:

And supply is given by:

 

When the market is at equilibrium what is consumer surplus?

 

In the market for widgets, demand is given by:

And supply is given by:

When the market is at equilibrium what is producer surplus?

 

 

The supply curve given by   exhibits an odd property. It says that supplier will be willing to make 20 widgets even if the market price were zero dollars. Even more, if they were only making 10 widgets, they'd be willing to pay consumers $10 to take them. Which of the following could explain why producers would be willing to put in costly time, effort, and resources even when the reward is nothing at all?

 

Every movie I see in theaters costs me $7.25. That is to say, the marginal cost of seeing a movie in theaters is $7.25. I have done extensive calculations and found that the marginal benefitI recieve from each movie in a given year is defined by this equation: 

For example, the marginal benefit of seeing 10 movies in theaters is 23 - (10/4) = $20.50.

Given this information, how many movies should I see in theaters this year?