Question

g Suppose there are 100 consumers with individual demand curves like the one in Question 1 and 10 producers with individual supply curves like the one in Question 1. Find the competitive equilibrium for this marke

Answer 1

Answer:

The correct answer is "16".

Explanation:

The given question seems to be incomplete. Please find the attachment of the full query.

According to the question,

The supply per producer when there are overall 10 producers,

⇒ $P(\frac{Y}{10} )=10+(\frac{Y}{200} )$

or,

⇒       $Y=200P-2000$

The consumption per producer when there are overall 100 producers,

⇒ $P(\frac{x}{100} )= 40-(\frac{2x}{100} )$

or,

⇒          $x = 2000-50 P$

At equilibrium,

⇒ $200P-2000=2000-50P$

On adding "2000" both sides, we get

⇒ $200P-2000+2000=2000-50P+2000$

⇒                        $200P=4000-50P$

                          $250P=4000$

                               $P=\frac{4000}{250}$

                                   $=16$