The widget industry in Springfield is competitive, with numerous buyers and sell
ID: 1177828 • Letter: T
Question
The widget industry in Springfield is competitive, with numerous buyers and sellers.
Consumers don't differentiate among the various brands of widgets (no product differentiation).
The industry demand curve is given by:
Qd = 998 %u2013 5Pw + 4 Y %u2013 6Pg
And the industry supply curve is given by
Qs = +15Pw %u2013 3 Wage
Where Pw represents the price of widgets, Pg is the price of gasoline, Y is disposable personal income in Springfield, and Wage is wages paid to workers in widget factories.
Currently, Y= $10, Pg = $3, and Wage = $20.
Please explain how you get to the answer
Explanation / Answer
It's simple maths.Why don't you try it by yourself even once.
998-5Pw+4Y-6Pg=15Pw-3W
20Pw=998+4Y-6Pg+3W
20Pw=998+40-18+60
Pw=1080/20=54
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