News On Economics Blog

 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 cur...