Question: The supply and demand equations for a hypothetical perfectly competitive market are given by
Q _S = - 100 + 3 P and Q _D = 500 - 2 P .

1. Find the market equilibrium price and quantity algebraically . Show your solution and final answers in this cell. Expand this cell as needed and highlight your final numerical results.
2. In Excel, use the equilibrium price you found in part (a) and the cost data from the table below to determine the firm’s optimal output and profit or loss . (From Week 3, recall that TFC = total fixed cost and TVC = total variable cost.
   

   Output	0	1	2	3	4	5	6	7	8	9	10
   TFC	100	100	100	100	100	100	100	100	100	100	100
   TVC	0	100	180	240	320	440	600	800	1040	1340	1800

3. If the government provides $40 subsidy per unit of output to each firm, determine the impact of this policy on market equilibrium price , the firm’s output , and its profit or loss . Show your solution and final answers in this cell. Expand this cell as needed and highlight your final numerical results.
   
4. Suppose that the firm’s AVC rises by $20 at each level of output due to an increase in material costs. Determine the impact of this development on market equilibrium price , the firm’s output, and its profit or loss . Show your solution and final answers in this cell. Expand this cell as needed and highlight your final numerical results.
5. If the market demand increases , changing the original demand equation to: Q _D = 600 - 2 P , Determine the impact of this event on market equilibrium price , the firm’s output , and its profit or loss . Show your solution and final answers in this cell. Expand this cell as needed and highlight your final numerical results.

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document