Consider the perfectly competitive market for Diesel. The aggregate demand for gasoline is The aggregate demand for gasoline is Q_d=100-p While the aggregate supply is Q_s= 3p Work out the equilibrium price and quantity

/in /by

Consider the perfectly competitive market for Diesel. The aggregate
demand for gasoline is

The aggregate demand for gasoline is

Q_d=100-p

While the aggregate supply is Q_s= 3p

Work out the equilibrium price and quantity

You might also like
With the help of a diagram, explain the conditions of a producer’s equilibrium in terms of marginal cost and marginal revenue approach.
Critically discuss any three Macroeconomic and at least two Microeconomic reasons for growth in government expenditure.
Give brief but succent conceptual discussion on welfare theory and resource allocation.
Assume champagne industry has recently launched a successful marketing campaign that changes consumers’ tastes and preference for champagne. Many executives in the industry were happy about the resulting excessively high champagne prices. But some economists feared that such sharp price increases would cause demand to decline and may lead to a collapse in the champagne market. Please discuss the above situation in terms of economic theories such as demand/supply
The loss to the consumers can be decomposed into three pieces : gain to domestic producers, revenue for government, deadweight loss . Use the diagram to identify three pieces You are given the following schedule for the production of pens by a firm Labor Total Product 0 0 1 20 2 50 3 70 4 80 5 85 6 82 If pen sells for Rs 3 per unit and workers can be hired in a competitive labor market for Rs30 per day, how many workers should be hired? Explain your answers clearly.
Cures for production externalities include the use of (i) Pigouvian taxes (ii) setting up a market for the externality (iii) allowing firms to merge and (iv) transfer of property rights in other ways. Demonstrate how each of these policies can reduce production externalities in an economy
Suppose a consumer consuming two commodities X and Y has the following utility function U= 10X0.4Y0.6. If price of good X and Y are 2 and 3 respectively and income constraint is Birr 50, then find Find quantities of X and Y which maximize utility Show how the rise in income to Birr 100 will affect the quantities of X and Y
Discuss the impact the hard lockdown had on perfect markets