This is about economic solution.There are 2 regions but they were given by different each other function of demand and supply.1.First question is we won't sell these products on both regions and you can't transport the product each other.So please find the equilibrium price,equilibrium quantity,shortage and surplus of goods on one by one.Functions were written below.
a.Q(demand)=50-0.5P
Q(supply)=-10+P (first region)
b.Q(demand)=120-P
Q(supply)=-20+P (second region)
2.If you can transport the product to these 2 regions cheapestly,please find the equilibrium quantity on these 2regions one by one.If you can't transport any product from first to second region,who can get a profit from them?.Who can't get a profit from these condition?Do you know about a good economic web site?
To find the equilibrium price, equilibrium quantity, shortage, and surplus of goods for each region, we need to set the demand equal to the supply in each case.
For the first region:
Demand function: Q(demand) = 50 - 0.5P
Supply function: Q(supply) = -10 + P
Setting Q(demand) = Q(supply), we have:
50 - 0.5P = -10 + P
Simplifying the equation, we get:
1.5P = 60
P = 40
Substituting the value of P back into the demand or supply function, we can find the equilibrium quantity:
Q = 50 - 0.5(40) = 30
Therefore, the equilibrium price for the first region is $40, and the equilibrium quantity is 30 units. Since the quantity demanded (30 units) equals the quantity supplied, there is no shortage or surplus.
For the second region:
Demand function: Q(demand) = 120 - P
Supply function: Q(supply) = -20 + P
Setting Q(demand) = Q(supply), we have:
120 - P = -20 + P
Simplifying the equation, we get:
2P = 140
P = 70
Substituting the value of P back into the demand or supply function, we can find the equilibrium quantity:
Q = 120 - 70 = 50
Therefore, the equilibrium price for the second region is $70, and the equilibrium quantity is 50 units. Since the quantity demanded (50 units) equals the quantity supplied, there is no shortage or surplus.
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Now, if we can transport the products between the two regions, we can find the equilibrium quantity for each region separately.
Assuming the transportation cost is negligible, the combined demand and supply functions are as follows:
Demand function (combined): Q(demand) = 50 - 0.5P + 120 - P = 170 - 1.5P
Supply function (combined): Q(supply) = -10 + P - 20 + P = -30 + 2P
Setting Q(demand) = Q(supply), we have:
170 - 1.5P = -30 + 2P
Simplifying the equation, we get:
3.5P = 200
P = 57.14 (approx.)
Substituting the value of P back into the demand or supply function, we can find the equilibrium quantity:
Q = 170 - 1.5(57.14) = 89.29 (both regions combined)
Now, if we divide the equilibrium quantity by the proportion of demand and supply for each region, we can find the equilibrium quantity for each region:
For the first region:
Q1 = (89.29) * [(50 - 0.5P) / (50 - 0.5P + 120 - P)] = 47.07 (approx.)
For the second region:
Q2 = (89.29) * [(120 - P) / (50 - 0.5P + 120 - P)] = 42.22 (approx.)
Therefore, the equilibrium quantity for the first region is approximately 47 units, and for the second region, it is approximately 42 units.
If we cannot transport any products from the first to the second region, then any surplus in the first region cannot be used to profit from sales in the second region. Hence, only the region with a surplus can potentially make a profit.
As for a good economic website, I recommend checking out websites like Investopedia (www.investopedia.com) and The World Bank (www.worldbank.org). These websites provide comprehensive information on various economic concepts, news, and data.