Economic/Statistic Problems

        1. [Market Equilibrium I] Find the equilibrium price and quantity for the following markets. (a) Qd = 220−5P Qs = −20+3P. (b) Qd −128+9P = 0 Qs +32−7P = 0. 2. [Market Equilibrium II] Find the equilibrium price and quantity for the following related market for two goods. (a) Qd1 = 82−3P1 +P2 Qs1 = −5+15P1. and Qd2 = 92+2P1 −4P2 Qs2 = −6+32P2. (b) Qd1 = 410−5P1 −2P2 Qs1 = −60+3P1. and Qd2 = 295−P1 −3P2 Qs2 = −120+2P2. Submission deadline: October 18, 2017 in class Page 1 of 2 Instructor: Ram Sewak Dubey ECON 317: Problem Set 3 October 11, 2017 3. [Market Equilibrium III] Supply and demand functions could take non-linear form. In this question we examine such cases again to find the equilibrium price and quantity. (a) Demand P+Q 2 +3Q−20 = 0, and supply P−3Q 2 +10Q = 5. (b) Demand 3P+Q 2 +5Q−102 = 0, and supply P−Q 2 +3Q+71 = 0. 4. [National Income I] Given Y = C +I +G+NX,C = C0 +bY,I = I0,G = G0, and NX = NX0, where C0 = 135, b = 0.8, I0 = 75 and G0 = 30, find the equilibrium national income and the aggregate household consumption C in equilibrium. 5. [National Income II] Given Y = C +I +G+NX,C = C0 +bYd,I = I0,G = G0, and NX = NX0, where Yd = Y −T, and T = T0 +tY and C0 = 85, b = 0.75, I0 = 30 and G = NX = 0, T0 = 20 and t = 0.20. Here T is the total amount of taxes the households have to pay with T0 being the fixed amount of taxes (regardless of income) and t is the tax rate (as a fraction of income Y). Find the equilibrium national income, the aggregate household consumption C in equilibrium and the total amount of taxes paid by the households.. Submission deadline: October 18, 2017 in class Page 2 of 2