Equilibrium price and quantity in the market

Question

Question 1. Suppose the market demand curve for a Product is given by Q^d = 250 - 5P and the market supply curve is given by Q^s = -50 + 25P.

1. What are the equilibrium price and quantity in this market?

2. At the market equilibrium, what is the price elasticity of demand?

3. Suppose the price in this market is $8. What is the amount of excess demand?

Question 2. Suppose the market demand curve for a product is given by Q^d = 500 - 156P + 20I and the market supply curve is given by Q^s = -25 + 10P - 10K. Assume initially that I= 10 and K = 5.

1. What are the equilibrium price and quantity in this market?

2. What are the endogenous and exogenous variables in the equilibrium model?

3. Suppose K suddenly increases to 20. How will this affect the market equilibrium calculated in part 1?

Question 3. Suppose demand for good A is given by Q^d_A = 500 - 10P_A + 2P_B + 0.70I where P_A is the price of Good A, P_B is the price of some other good B, and I is income. Assume that P_A is currently $10, P_B is currently $5, and I is currently $100.

1. What is the elasticity of demand for good A with respect to the price of good A at the current situation.

2. What is the cross price elasticity of the demand for good A with repect to the price of good B at the current situation?

3. What is the income elasticity of demand for good A at the current situation.

Question 4. Suppose the market demand curve for a product is given by Q^d = 500 - 5P and the market supply curve is given by Q^s = 20P

1. What are the equilibrium price and quantity in this market?

2. Now suppose that the new demand curve for the same product is given by Q^d = 1000 - 5P and the market supply curve remains unchanged. What are the new equilibrium price and quantity in this market.