[AmeliaG]

I have an assignment due and I was just hoping that maybe someboyd could confirm with me my answers.. . The question is:
Demand in a perfectly cometitive market is P=100Q. Supply in that market is P=10+Q. What is the market equilibrium and quantity? Given the price and quantity, what is the consumer surplus, prodcuder surplus and dead-weight loss? If government imposes a $10 per unit sales tax, what is the new equilibrium price and quantity? How much is consumer surplus, producer surplus an dead-weight loss? Thanks you for your help.

[ordinaryguy]

The demand function P=100Q is a positive sloping line that passes ttrough the origin. This is a mighty strange demand function, since it says that the higher the price, the greater the quantity demanded. Is this a trick question?

[nackieb]

Use the following data to answer the questons. QUANTITY 0,1,2,3,4,5,6,7,8. MARGINAL COST -,$2,$3,$4,$5,$6,$8,$10,$12. MARGINAL BENEFIT. -,$10,$9,$8,$7,$6,$5,$4,$3. a) For the product shown, assume that the minimum point of each firm's average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the equilibrium price and quantity. b) On the graph, label the area of consumer surplus as f. Label the area of producer surplus as g. c) If the equilibrium price were $2, what would be the amount of producer surplus?