Economics demand and supply
Not what you're looking for?
Each question needs just a few lines to each question. I will use the answers to confirm and help me understand each question and the concept.
1. Analyze what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well):
a. The price of Coke decreases.
b. Average household income falls from $50,000 to $43,000
c. There are improvements in soft-drink bottling technology.
d. The price of sugar increases and the Pepsi launches an extremely successful advertising campaign.
2.
a. Analyze the following demand and supply equations. What is market equilibrium price? What is market equilibrium quantity?
Demand: Qd = 100 - 4P
Supply: Qs = 10 + 6P
b. Assume the government places a price ceiling at $7 in the market. What is quantity demanded? What is quantity supplied? Is there a shortage or a surplus?
3. Using the diagram below, answer the following questions:
Diagram on the attachment below
a. How much is the per-unit tax on cigarettes?
b. What price do consumers pay after the tax?
c. How much tax revenue is collected?
d. What is the amount of deadweight loss?
Purchase this Solution
Solution Summary
Analysis of problems related to demand and supply are provided.
Solution Preview
Economics Demand and Supply
1. Analyze what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well):
a. The price of Coke decreases.
Since Coke and Pepsi are substitutes, decrease in price of Coke would lead to a downward shift in demand curve for Pepsi. The quantity demand for Pepsi would decrease.
b. Average household income falls from $50,000 to $43,000
With decrease in income, demand for Pepsi depends on ...
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.