Demand and Supply problems Solving

 Here are 10 problems with answers on Demand and Supply:

*Problem 1:*

A company produces widgets at a cost of $10 per unit. If the market demand is 1000 units at a price of $15 per unit, what is the equilibrium price and quantity?

*Answer:*

Equilibrium price = $15 per unit

Equilibrium quantity = 1000 units

*Problem 2:*

A consumer is willing to pay $20 for a product, but the market price is $18. What is the consumer surplus?

*Answer:*

Consumer surplus = $20 - $18 = $2

*Problem 3:*

A company supplies 500 units of a product at a price of $12 per unit. If the market demand is 700 units at that price, what is the shortage?

*Answer:*

Shortage = 700 - 500 = 200 units

*Problem 4:*

A consumer's demand curve is given by P = 50 - 2Q. What is the consumer's willingness to pay for the 10th unit?

*Answer:*

P = 50 - 2(10) = $30

*Problem 5:*

A company's supply curve is given by P = 2Q + 10. What is the company's marginal cost?

*Answer:*

Marginal cost = 2

*Problem 6:*

If the demand curve is P = 100 - 2Q and the supply curve is P = 2Q + 20, what is the equilibrium price and quantity?

*Answer:*

Equilibrium price = $40

Equilibrium quantity = 30 units

*Problem 7:*

A consumer's income increases by 20%, leading to an increase in demand for a product. What is the income elasticity of demand?

*Answer:*

Income elasticity of demand = 1 (assuming unitary elasticity)

*Problem 8:*

A company produces two products, X and Y, with costs of $5 and $10 per unit respectively. If the demand curves are P = 50 - 2Q for X and P = 100 - 3Q for Y, what are the equilibrium prices and quantities?

*Answer:*

Equilibrium price for X = $20

Equilibrium quantity for X = 15 units

Equilibrium price for Y = $70

Equilibrium quantity for Y = 10 units

*Problem 9:*

A government imposes a tax of $2 per unit on a product. If the original equilibrium price was $10, what is the new equilibrium price?

*Answer:*

New equilibrium price = $12

*Problem 10:*

A company's demand curve is given by P = 200 - 5Q. If the company wants to increase revenue by 10%, what should be the new price?

*Answer:*

New price = $180

Let me kno