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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)

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

## hen PRESS ENTER

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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)

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

#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)

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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)

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

#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

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

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

PLY *
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