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a. Suppose the world oil market is characterized by a demand of Qd = 85 – .3P and a supply that is controlled by two groups, each with a supply equal to 35 + .1P for a total market supply of 70 + .2P.

Suppose the world oil market is characterized by a demand of Qd = 85 – .3P and a supply that is controlled by two groups, each with a supply equal…

a.  Suppose the world oil market is characterized by a demand of Qd = 85 – .3P and a supply that is controlled by two groups, each with a supply equal to 35 + .1P for a total market supply of 70 + .2P.  What are the equilibrium price, quantity, and total revenue for each group?b.  Now suppose that one of the groups (the cartel) intentionally lowers their supply to 20 units while the other group maintains their previous supply function.  What are the new equilibrium price, quantity, and total revenue for each group?

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