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MARKET EQULIBRIUM

1. Given the demand function and the supply function of two kinds of
products which have ties substitution as follows:
Qdx = 5 -2Px + Py
Qdy = 6 + Px Py
Qsx = -5 + 4Px - Py
Qsy = -4 - Px + 3Py
Look for the market equilibrium price and quantity
SOLUTION
Terms equilibrium market:
Qsx = Qdx
-5 + 4Px Py = 5 - 2Px + Py
4Px + 2Px Py Py = 5 + 5
6Px 2Py = 10 (1)

Qsy = Qdy
-4 Px + 3Py = 6 + Px Py
-Px Px + 3Py + Py = 6 + 4
-2Px + 4Py = 10
- Px + 2Py = 5 (2)
(1) Dan (2)
6Px 2Py = 10
- Px + 2Py = 5
5Px

= 15

Px = 3
PY =4
Qsx = 3
Qsy = 5
MEx = ( 3, 3 )

MEy = ( 5, 4 )
2. . Demand function is shown by the equation Qd = 10 - 5P and Qs =
function offerings are - 4 + 9P
a. What is the equilibrium price and quantity are created in the market?
b. Indicate the geometry!
Answer:
a.) Balance market:

Qd = Qs
10 5 P
= 4 + 9P
14P
= 14
P
=
1 Pe
Q = 10 5P
Q = 5
Qe

Market equilibrium price and quantity is E (5.1)

DEMAND
1. One item, if sold for $ 5000 apiece would sold 3000 units. However, if it is
sold at a cheaper price is $ 4,000 apiece, the total demand for goods
increased to 6000 pieces. How is the demand function?

1 = 5000, Q1 = 3000
P2 = 4000, Q2 = 6000
P P1 = Q Q1
P2 P1 Q2 Q1
P = -1/3 Qd + 6000
Jadi fungsi permintaannya adalah : P = - 1/3 Qd + 6000
2.

Request a product of 500 pieces at cost 40,000. If any increase in prices


by 1250 would cause the number of requests has decreased by 250, how
the demand function

P1 = 40.000 , Q1 = 500
P = 1.250, Q= -250
(P P1) = m (Q Q1)
m = P / Q
= 1.250 / -250
= -5
P = -5Q + 42.500
SUPPLY

1. In a market known as the rice price Rp 8.00 amount requested 5 Kg


and when there is a price increase to Rp 10.00 then the amount
requested 4 Kg. Look for Special Functions!
P1 = 8
Q1 = 5
P2 = 10
Q2 = 4
(P - P1) / (P2 - P1) = (Q - Q1) / (Q2 - Q1)
(P - 8) / (10 - 8) = (Q - 5) / (4 - 5)
-P + 8 = 2Q - 10
P = -2Q + 18
2. At durian price Rp. A 3000 apiece stores can only sell Durian
as many as 100 pieces, and at the price of Rp durian. 4000 apiece
store A capable
Durian sell more to 200 pieces. of the case make
bid function?
Answer:
Data obtained from the above matter as follows:
P1 = 3000 Q1 = 100 pieces
P2 = 4,000 Q2 = 200 pieces
The next step, we put the above data into a linear equation:

P - P1
Q - Q1
-------- = --------P2 - P1
Q2 - Q1
P - 3.000
Q - 100
-------------- = ------------4.000 - 3.000
200 - 100
P - 3.000
Q - 100
-------------- = ------------1.000
100
(P - 3.000)(100) = (Q - 100) (1.000)
100P - 300.000 = 1.000Q - 100.000
1.000Q = -300.000 + 100.000 + 100P
1.000Q = -200.000 + 100P
Q = 1/1000 (-200.000 + 100P )
Q = -200 + 0.1P
SUBSIDY

1. Given: D: X +2 P = 1000 and S: x = p-260


If the item is government subsidies give him 60 rupees per unit of the goods, then;
A. Calculate E before in the given subsidy
B. Calculate new E
C. Calculate the amount of subsidy that the government should provide and what% of
these subsisdi enjoyed by consumers.

Solution:
a. E before the subsidy was given:

D : x+2p=1000
2p=1000-x atau p=500 .x
S : x = p-260
p = 260 = x
E:D=S
500-1/2.X=260+X
1 .X=500260=240
Jadi, x= 240 / 1 = 160 dan p = 260+160=420
Jadi, E Before the subsidy given E (160,240)
b. Subsidi s =60
new Supply : Ss:p=260+x-60=200+x
new E D = Ss
500-1/2.x=200+x
1 .x=500200=300
SO x =300/ 1 = 200 dan p = 200 +200=400
So E after the subsidy is E (200,400)

Apparently, after subsidies, price dropped to 400 rupiah and the number of items purchased
up to 200 units,
The amount of subsidy to be given by the government = s = 200 xbaru times kali60 = 12,000
rupiah.
Of subsidies enjoyed by consumers is
(P2-p1) / s x 100 %= 420-400 / 60 x 100% = 33,33%

3. Qd = -3P + 2400 . (I)

Qs = 3P 480

. (II)

The government provides a subsidy of s = 12 per unit.


count:
1) The balance of the market before subsidies.
2) The balance of the market after the subsidies.
3) The subsidy provided by the government.
4) Subsidies to consumers.
5) Subsidies to producers.
completion:
1) The balance of the market before subsidies
Terms equilibrium the market is Pd = Ps or Qs Qd =
-3P +2400 = 3P-480
-3P-3P = -480 -2400
-6P = -2880
Pe = 480
Enter into the equation Pe (I) the following:

Q = -3P + 2400
Q = -3 (480) + 2400
Q = -1440 + 2400

Qe = 960
So the balance of the market before the subsidy is Qe = 960 and Pe =
480.
2) The balance of the market after the subsidies
New supply function after subsidies are:

Qs = a + b (P+s)
Qs = b (P+s) + a
Qs = 3 (P+12) 480
Qs = 3P + 36 480
Qs = 3P- 444
Keseimbangan pasar setelah subsidi:
Qd = Qs
-3P + 2400 = 3P 444
-3P -3P = -2400 -444
-6P = -2844
Pe = 474
Please insert the result into equation (I) as follows:

Q = -3P+2400
Q = -3 (474) + 2400
Q = -1422 + 2400
Qe = 978
So the balance of the market after the subsidies are Qe '= 978 and Pe' =
474.
3) subsidy given by government

S = s x Qe
S = 12 x 978

S = 11.736
4) subsidy for consument

sk = (Pe Pe) x Qe
sk = (480 474) x 978
sk = 6 x 978
sk = 5.868
5)

Subsidi for produsen

sp = S sk
sp = 11.736 5.868
sp = 5.868
For the sample questions above may result in:

3.

TAX

1. Qd = 11 - P
Qs = - 8 + 2P
If taxed at $ 1
Keseimbanngan before tax
Demand = Supply
Or Pd = Ps
11 - P = - 8 + 2P
3P = 19
P = 6.3
P = 6.3 SUBSTITUTION TO: Q = 11 - P
Q = 11 to 6.3
Q = 4.7
2. The function of the demand for a good is represented by the equation P = 15 - Q, while
offers 3 + 0.5 P = Q. The goods were subject to a tax of 3 perunit. What is the equilibrium

price and the balance amount before tax and how well the balance amount after taxes?
Answer:
Before taxes Pe and Qe = 7 = 8 (example above). After taxes, the sale price offered by the
manufacturer to be higher. Supply equation changed and the curve shifts upward.
Special pre-tax: P = 3 + 0.5 Q
Special after tax: P = 3 + 3 + 0.5 Q
P = 6 + 0.5 Q Q = -12 + 2 P
While the demand equation remains:
Q = 15 - P
Market equilibrium: Qd = Qs
15 P = -12 + 2P
27 = 3P
P=9
Q = 15 P
Q = 15 9
Q =6
SO, After Tax : Pe = 9 dan Qe = 6
4. Qd

Qs

= -P + 28

(I)

=8+P

(II)

The government set a tax of t = 4 per unit


You are required to calculate:
1) The balance of the market before taxes.
2) The balance of the market after tax.
3) The amount of tax the government requested.
4) The amount of tax on the consumer.
5) The amount of tax borne by producers.
completion:
1) The balance of the market before taxes
keseimbangan pasar Pd = Ps atau Qd = Qs
-P + 28 = 8 + P
-P-P = 8-28
-2p = -20
Pe = 10
Substitute Pe = 10 into equation (I) becomes:
Q =-P + 28
Q = -10 + 28

Qe = 18
The balance of the market before the tax is Qe = 18 and Pe = 10
2) The balance of the market after tax
Calculating the supply function after tax (t = 4)
Qs = 8 + P
Qs = a + b (P-t)
Qs = 8 + 1 (P-4)
Qs = 8 + P -4
Qs = P + 4
The balance amount after tax and price balance is Qd = Qs 'and Pd = Ps'.

Enter into the equation Pe = 12 (I)


Q =-P + 28
Q = -12 + 28
Qe '= 16
Market equilibrium after the tax is Qe '= 16 and Pe' = 12
3) The amount of tax the government requested

T = t x Qe
T = 4 x 16
T = 64
So the tribute demanded by the government is equal to 64
4) The amount of tax on the consumer

tk = (Pe Pe) x Qe
tk = (12 10) x 16
tk = 2 x 16
tk = 32
So the tax borne by consumers is 32
5) The amount of tax borne by manufacturers

tp = T - tk
tp = 64-32
tp = 32
The tax imposed on producers is 32
From the above example problems obtained

So it can be concluded the tax causes prices to rise and demand falls.