(a)Write down the Bertrand equilibrium prices for this market. The precautionary demand for money increases with the proportionate increase in income. demand and supply within the monopoly market The demand curve to shift to the left b If annual demand is greater than annual supply then the largest amount of cumulative water stored over a two year period will dictate the tank size and supplemental water will be needed 7 SUPPLY AND DEMAND OF OFFICE PROPERTY 26 2 APA Fact Each firm = 1,2 simultaneously determines its quantity . Let U ( x) be its anti-derivative. With a change in the price, the quantity demanded also alters. Answer of A monopoly’s inverse demand function is , where  is its quantity,  is its price, and  is the level of advertising. For each Q, its selling price P is assumed to be determined by the linear \inverse" demand function P = a bQ for Q 0, The company is is approved by the European Union to market its product separately in Northern Europe and Southern Europe. \$882 b. f) Compute the consumer surplus and welfare loss (deadweight loss) in each imperfectly competitive market (monopoly market and duopoly market-Stackelberg). For example, the market demand curve may be highly inelastic in the short-run but much more elastic in the long-run. Search: Supply And Demand Lesson Pdf. Show that if a monopolys inverse demand curve is linear, its marginal revenue curve is also linear, has twice the slope of the inverse demand curve, intersects the vertical axis at the same point as the inverse demand curve, and intersects the horizontal axis at half the distance as does the inverse demand curve. A monopoly chooses that price that maximizes the difference between total revenue and total cost. Multiply the inverse demand function by Q to derive the total revenue function: TR = (120 . The competitive equilibrium quantity is a.