You are a painter, and the price of a gallon of paint increases from $3.00 a gallon from 3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. perform the following: 1. compute the price elasticity of demand for paint and show your calculations. 2. decide whether the demand for paint is ela
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Please answer in 200-300 words 1. Does better quality decrease or increase demand? why? Debate both perspectives.
Please answer in 200-300 words. 1. In terms of supply and demand, is price the only thing that matters? Why or why not?
A private-garage owner is currently charging his customers $1.75 per hour. But he is considering changing the way he prices parkers in an attempt to increase profit. He has identified two distinct market segments for his business: short-term parkers and all-day parkers with respective demand curves (functions) of QS = 600 -
Please assist with parts: a,b,c,d,e Thank you!!! *Use this information to answer the questions that follow. Market researchers at Chrysler estimated the demand for their new Chrysler Crossfire sports cars as follows: QC = 1,050,000 - 95PC + 14.25M + 60PBMW + 25PP Where QC is the quantity of Chrysler Crossfires
1. Assume that, for a particular demand curve, when price rises from $50 to $60, total revenue falls from $8,750 to $7800. a. Based on this information, what is the quantity demanded at each price. b. Without calculating the coefficient of elasticity, is demand over this range elastic or inelastic?
Using the following schedule, define the equilibrium price and quantity. Describe the situation at a price of $10. What will occur? Describe the situation at a price of $2. What will occur? Price Quantity Demanded Quantity Supplied $1 500 100 $2 400 120 $3 350 150 $4 320 200 $5 300 30
The demand for company X's product is given by Qx=12-3Px+4Py . Suppose good X sells for $3.00 per unit and good Y sells for $1.50 per unit. a.Calculate the cross-price elasticity of demand between goods X and Y at the given prices. b.Are goods X and Y substitutes or complements? c.What is the own price elasticity of demand
Suppose you are an aide to a U.S. Senator who is concerned about the impact of a recently proposed excise tax on the welfare of her constituents. You explained to the Senator that one way of measuring the impact on her constituents is to determine how the tax change affects the level of consumer surplus enjoyed by the constituen
Rising jet fuel prices recently led most major U.S airlines to raise fares by approximately 15 percent. Tell me why this substantial increase in airfares would affect the folowing A. The demand for air travel. B. The demand for hotels
Cigarette Smoking and Taxes (adapted from lesson in economics.about.com) Cigarette taxes are a hot topic in Economics for many reasons. Cigarettes are considered goods with a negative externality. This implies that some external parties are negatively affected by the private transaction of others. For instance, cigarettes produ
Demand and Forecasting
Suppose the price of apples rises from $3 a pound to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to s
Suppose the price of apples rises from $3 a pound to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to
The bank is looking for new clients in high-growth industries. Until a few years ago, if a consumer wished to purchase music, he or she would have to buy a recording of it at a store, but there is only a limited supply of compact discs, tapes, or records at any given store. Because of advancements in technology, consumers can no
From Figure 8-4, determine the effect of a 33 percent import tariff on commodity X. The tariff-inclusive price will be $3(1+.33) = $4. What are the impacts of tariff on domestic consumption, domestic production, imports, and government's tariff revenue? Please show the numbers, for example, the domestic consumption will decr
Starting with the market demand and supply functions, QD = 10,000 - 1,000P QS = -2,000 + 1,000P Determine algebraically the new equilibrium price and quantity if (a) the demand function changes to QD' = 12,000 - 1,000P or to QD" = 8,000 - 1,000P, or (b) the market supply function changes to QS* = -4,000 + 1,000P or to QS*
Assume that S and D are neither perfectly elastic nor perfectly inelastic. Assume that market for Jelly is initially in equilibrium. Let's call this initial equilibrium price and quantity as P1 and Q1 respectively. a)Explain what will happen to demand for Jelly if the price of peanut butter ( a complimentary good) has droppe
Can someone help me with this problem? I have attempted to answer Question A and would like for someone to tell me if I have answered it correctly. Part B of the question is asking for a graph and I can not get this to graph correctly. Part C and D is aking questions related to the graph. If someone can show me or assist me
Suppose that the demand for video rentals per week is given by Qd^videos = 18 - 4P^videos, and the supply of videos by your local video store per week is Qs^videos = 6 + 2P^videos. a) Calculate the equilibrium price and quantity in this market. b) If the price = $3, then what is happening in this market? Briefly expla
I need detailed answers for these problems. They are core problems to prepare for the exam. (Gwartney, p. 78, #2) What is being held constant when a demand curve for a specific product (shoes or apples, for example) is constructed? Explain why the demand curve for a product slopes downward to the right. (We gave two reasons
1. Assume that the cost function of a firm is given by the relationship... 2. Decker is a maker of small kitchen appliances. Its economists estimated the following demand for toaster oven using data gathered over 16 quarters from 10 major retail distributors of its product. This type of sample which involves the use of cross-se
With Jan 1st, 2000 being the new millennium, many predicted worldwide shortages of champagne, lobster and other New Year delicacies. New England and Canadian wholesalers began stockpiling lobsters it the first half of 1999. Boston dealer James hook ordered 675,000 kilograms which is 50% more than he did last year. The anticipate
Consider three supply & demand scenarios in this question. In each case, we have a perfectly competitive market and the market demand curve is given by P = $100 - Q where P is the market price and Q is the market quantity. In the first scenario, the market supply curve is given by P = $50. In the second, the market supply is giv
Given the demand and supply functions below, Qd=500-2p Qs=-100+2P Where Qd is the quantity demanded, Qs is the quantity supplied, P is the Price. A- Solve for market equilibrium mathematically. B- Describe verbally, the effects on equilibrium quantity and equilibrium price of: 1. Shifts in supply and demand functions
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How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller than accounting profit? What are the three basic sources of economic profit? Classify each of the following according to those sources: a. A firm's profit from developing and patenting a new medication that greatly reduces
a. Suppose that someone told you that an increase in the price of DVD players caused a decrease in the demand for DVDs. Is this what you would predict? Why or why not? b. Suppose that someone told you that an increase in the price of gasoline caused a decrease in the demand for public transportation. Is this what you woul
What were the effects of the Big Dig in Boston? Did spending on road repair contribute to the boom in other industries? If so, how? Discuss the spending/investment effects on the economy.