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MARKET STRUCTURE: LINEAR DEMAND AND LINEAR SUPPLY *

1)
In the green cells, type the intercept and slope of the inverse market demand function P = a - bQ and then PRESS ENTER
Intercept (a)
Slope (b)
2)

In the green cell, type the intercept and slope of the inverse market supply function P = c + dQ and then PRESS ENTER
Intercept (c)
Slope (d)

DEMAND AND SUPPLY EQUILIBRIUM OUTCOME:


Market
Quantity
#DIV/0!
Price
#DIV/0!
Consumer Surplus
#DIV/0!
Producer Surplus
#DIV/0!
*

Note: Intercept (a) must be greater than Intercept (c) > 0

hen PRESS ENTER

en PRESS ENTER

MARKET STRUCTURE: LINEAR DEMAND AND LINEAR SUPPLY WITH PRICE CEILING*
1)
In the green cells, type the intercept and slope of the inverse market demand function P = a - bQ and then PRESS ENTER
Intercept (a)
100
Slope (b)
8
2)

In the green cell, type the intercept and slope of the inverse market supply function P = c + dQ and then PRESS ENTER
Intercept (c)
50
Slope (d)
2

3)

In the gree cell, type the price ceiling**

55

DEMAND AND SUPPLY EQUILIBRIUM OUTCOME:


Market
Pre-Ceiling Equilibrium
Quantity
#DIV/0!
Price
#DIV/0!
Consumer Surplus
#DIV/0!
Producer Surplus
#DIV/0!
Post-Ceiling Equilibrium
Quantity Demanded
#DIV/0!
Quantity Supplied
#DIV/0!
Shortage (QD - QS)
Price
Full Economic Price
Consumer Surplus
Producer Surplus
Deadweight Loss

#DIV/0!
$55.00
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!

Note: Intercept (a) must be greater than Intercept (c)

**

Note: price ceiling must be below the equilibrium price and above Intercept (c)

en PRESS ENTER

n PRESS ENTER

MARKET STRUCTURE: LINEAR DEMAND AND LINEAR SUPPLY WITH PRICE FLOOR*
1)
In the green cells, type the intercept and slope of the inverse market demand function P = a - bQ and then PRESS ENTER
Intercept (a)
100
Slope (b)
8
2)

In the green cell, type the intercept and slope of the inverse market supply function P = c + dQ and then PRESS ENTER
Intercept (c)
50
Slope (d)
2

3)

In the gree cell, type the price floor**

75

DEMAND AND SUPPLY EQUILIBRIUM OUTCOME:


Market
Pre-Floor Equilibrium
Quantity
#DIV/0!
Price
#DIV/0!
Consumer Surplus
#DIV/0!
Producer Surplus
#DIV/0!
Post-Floor Equilibrium
Quantity Demanded
#DIV/0!
Quantity Supplied
#DIV/0!
Surplus (QS - QD)
Price
Consumer Surplus
Producer Surplus
Deadweight Loss

#DIV/0!
$75.00
#DIV/0!
#DIV/0!
#DIV/0!

Note: Intercept (a) must be greater than Intercept (c) > 0

**

Note: price floor must be above the equilibrium price and below Intercept (a)

en PRESS ENTER

n PRESS ENTER

MARKET STRUCTURE: COMPARATIVE STATICS FOR LINEAR DEMAND AND LINEAR SUPPLY *
1)
In the green cells, type the intercept and slope of the inverse market demand function P = a - bQ and then PRESS ENTER
Initial Demand
New Demand
6
Intercept (a)
6
0.00002
Slope (b)
0.00002
2)

In the green cell, type the intercept and slope of the inverse market supply function P = c + dQ and then PRESS ENTER
Initial Supply
Intercept (c)
Slope (d)

New Supply

3
0.00004

3.3
0.00004

DEMAND AND SUPPLY EQUILIBRIUM OUTCOME:


Initial Market
Quantity
50000.0
Price
$5.00
Consumer Surplus
$25,000.00
Producer Surplus
$50,000.00

New Market
45000.0
$5.10
$20,250.00
$40,500.00

Note: Intercept (a) must be greater than Intercept (c) > 0

Change
-5000.0
$0.10
-$4,750.00
-$9,500.00

PLY *
hen PRESS ENTER

en PRESS ENTER