4. Considerthe following firm‐levelsupply schedule for oranges:; q = f(P) = 2P ‐ 2, where P= themarket price of oranges.; a. Ifthere are 10 identicalfirmsin themarket,then whatisthe equation forthemarketsupply; schedule (Q)? Find the derivative ofmarketsupply with respectto price when there are 10; firms.(5 points); ; b. Suppose there areNfirmsin themarket. Whatisthe equation formarketsupply? Find the; partial derivative ofmarketsupply with respectto price. Verify thatthis equation isthe same; as above whenN=10.(5 points); c. Sketch themarketsupply schedule in a diagramwhenN=10; be sure to identify the vertical; intercept and the slope ofthe supply schedule in your diagram(HINT:mind your P’s andQ’s!).; Verify in your diagramand using calculusthatthismarketsupply schedule obeysthe law of; supply.(5 points); Part Four: Market Equilibrium; 5. Using themarket demand and supply functionsfromquestions 3 and 4 (respectively);find; the equilibriumprice and quantity traded whenN=10 and I=10. Show your work. (5 points); 6. Suppose consumerincome decreasesto I=5; find the new equilibriumprice and quantity; traded. Show your work.(5 points); 7. In a well‐labeled diagram, illustrate the effect onmarket price and quantity of a decrease in; consumerincome on themarketfor oranges(i.e.,the scenario in questions 5&6, above).; However, you do not need to label any intercepts orslopes, justthe original and new; equilibriumprices and quantities.(5 points);
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