10.1 Suppose the daily demand curve for flounder at Cape May is given by QD = 1,600 – 600P where QD is demand in pounds per day and P is price per pound.

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10.1 Suppose the daily demand curve for flounder at Cape May is given by QD = 1,600 – 600P where QD is demand in pounds per day and P is price per pound. If fishing boats land 1,000 pounds one day, what will the price be? If the catch were to fall to 400 pounds, what would the price be? Suppose the demand for flounder shifts outward to QD = 2,200 – 600P How would your answers to part a and part b change? d. Graph your results.

10.6 Suppose there are 100 identical firms in the perfectly competitive notecard industry. Each firm has a short-run total cost curve of the form: STC = 1/300 q3 + 0.2q2 + 4q + 10 and marginal cost is given by SMC = .01q2 + .4q + 4 a. Calculate the firm’s short-run supply curve with q (the number of crates of notecards ) as a function of market price (P). b. Calculate the industry supply curve for the 100 firms in this industry. Suppose market demand is given by Q = -200P + 8,000. What will be the short-run equilibrium price-quantity combination? d. Suppose everyone starts writing more research papers and the new market demand is given by Q = -200P + 10,000. What is the new short-run price-quantity equilibrium? How much profit does each firm make?