Consider a service that you buy frequently. (Can use pedicure 2 times per month at $50 for graph and calculation) a. Suppose that the price was 5% lower and all other factors do not change. How much more would you buy each year? b. Using this information, calculate the own-price elasticity of your demand.
Q2: The Snow City Ski Resort cater to both out of town and local skiers. The demand for each market segment as well as the combined market is given in the attached table. The marginal cost servicing either type of skier is constant at $10. There are no fixed costs. a. If the resort charges one price to all skiers, what price
Recently, cellular telephones have become very popular. at the same time new technology has made them less expensive to produce. By assuming the technology advance caused cost curves to shift downwards at the same time that demands was shifting to the right, draw a diagram or diagrams to show what will happen in the short and in
To raise money for a group, we are selling women's shirts. total demand for women's shirts comes from two groups: students and working professionals. The demand curves for two groups are represented as: 1. Students: Qs=120-10Ps (Q sub s=120-10P sub s) 2. working professionals: Qw=48-2Pw a. We may consider buying from ven
A U.S. pharmaceutical company holds a patent on a drug in the U.S. and an analogous patent in Canada. Its marketing department has identified the following inverse demand curves for this drug in the U.S. and Canada: P us =1,000 - Qdus and P can =500 - Qdcan The marginal revenues for each market is
Difficulty identifying formulas for use. also, do multipliers and autonomous spending have to be calculated for item 1/IS curve? For the last item, does autonomous consumption and investment have to be computed to derive? Assume following (equations) summarize/represent structure of economy. If: C=Ca + 0.75(Y-T) Ca=800-25
1. Consider the choices of two groups of women ages 30 to 50. All the women in one group have a college education. All the women in the other group have less than a high school education. Which of the two groups will participate more in the workforce? Which of the two groups will bear a larger number of children on average?
Speedy delivery is a package carrier which serves the Midwest It specializes in the delivery of auto parts to independent auto repair shops. It competes against very large firms like FedEx, UPS, and US Postal. The demand for the firm's services has been increasing as more consumers keep their cars longer and have them fixed r
(Be sure to use a supply and demands diagram) Because bagels and cream cheese are often eaten together, they are complements. a. We observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen. What could be responsible for this pattern-a fall in the price of flour or a fall in
The United States currently imports all of it's coffee. The annual demand for coffee by US consumers is given by the demand curve Q = 250 - 10P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee. World producers can harvest and ship coffee to us distributors at a constant marginal (= aver
1. Airline companies sometimes fly airplanes that are one quarter full between cities. Some people point to this as evidence of economic waste. Is this economic waste? Would it be better to have fewer airline companies and more full planes? 2. Draw a diagram to identify a monopolistic competitor that is incurring losses. 3
Dozens of Internet Web sites offer quality auto parts for the replacement market. Their appeal is obvious. Price-conscious shoppers can often obtain up to 80 percent discounts from the prices charged by original equipment manufacturers (OEMs) for such standard items as wiper blades, air filters, oil filters, and so on. With a
1. The four major characteristics of a purely competitive market structure are _________________, __________________________, _______________________, ________________________. 2. The demand curve facing a pure competitor is ____________________ elastic; such a demand curve is (horizontal, vertical)_______________
On the basis of three individual demand schedules on the next page, and assuming these three people are the only ones in the society, determine (a) the market demand on the assumption that the good is a private good and (b) the collective demand schedule on the assumption that the good is a public good. Explain the differences,
Suppose that economists observe that in a closed economy an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. * If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity to consume (MPC) to be? * Now suppose that th
1. Caviar and champagne are complements. Recently pollution has been a problem in the Volga River, where much of the world's caviar originates. The sturgeon that live in these waters are laying fewer eggs than before. Show graphically and explain the effects on the market for caviar and the market for champagne. 2. Apple an
Two firms compete in a homgeneous product market where the inverse demand function is P=10-2Q(quantity is measure in millions). Firm 1 has been in business for one year, while firm 2 just recently entered the market. Each firm has a legal obligation to pay one year's rent of $1 million regardless of its production decision. F
For each question, draw a market in equilibrium, labeling the initial equilibrium price and equilibrium quantity. Then shift the appropriate curve and label the new equilibrium price and equilibrium quantity. Next, fill in the blanks to describe what happened
Directions: For each question, draw a market in equilibrium, labeling the initial equilibrium price and equilibrium quantity. Then shift the appropriate curve and label the new equilibrium price and equilibrium quantity. Next, fill in the blanks to describe what happened. 1. The price of a substitute for this go
How would government react to sudden, large changes in the price of a key commodity, such as gasoline, electricity, or prices on stocks on the New York Stock Exchange?
For the following events, tell me what happens as a result of the following events. You do not have to draw any graphs. 1. Please tell me what happens to the equilibrium price, and equilibrium quantity. 2. With regards to whether demand or supply changes, please use a plus sign (+) for the increase and a minus sign (-) for t
Please help answer the following three questions based on the data given: Data: Bushels demanded per month Price per bushel Bushels supplied per month 45 $5 77 50 4 73 56 3 68 61 2 61 67 1 57 Questions: 1. Refer to the above data, what is equilibrium price? 2. If the price i
Full Description: for the data below, I have to solve the problems, create problems similiar, and write a paper based on the data and use this as a study guide. I calculated these problems myself but wanted to get them done as to double check them since a lot of different parts of a large assignment is based off of the first st
Why are some markets monopolistic? Are there natural monopolies?
Superior Metals Company has seen its sales volume decline over the last few years as the result of rising foreign imports. In order to increase sales (and hopefully, profits), the firm is considering a price reduction on luranium - a metal that it produces and sells. The firm currently sells 60,000 pounds of luranium a year at a
Consider an economy that consists of two regions-the North and the South. The elasticity of labor demand in each region is -0.5. The economy-wide labor supply is perfectly inelastic. The labor market is initially in equilibrium, with 600,000 employed in the North and 400,000 in the South at the wage of $15/hour. Suddenly, 20,00
12. Orley has a wine cellar in which he keeps choice wines from around the world. What does Orely expect to happen to the prices of the wines he keeps in his cellar? Explain your answer. How does Orley decide which wine to drink and when to drink it?
4. Larry makes gourmet ice cream in small batches. He employs workers who can produce the following quantities in a day: (see chart in attached file) Larry can sell ice cream for $25 a batch, and the wage rate of his workers is $100 a day. a. Calculate the marginal product of the workers and draw the marginal product cu
What factors have affected supply, demand, and prices, in that industry over the past twelve months?
Identify an industry. What factors have affected supply, demand, and prices, in that industry over the past twelve months?
There is an attached chart. BTW the problem is talking about an amusement park, just so you know what I mean when I say "park" or "rides". The probability column wasn't needed then (I asked the professor) but it may be in one of these: 1. Under a rule of strict liability, how many inspections are likely to result? Under w
1. Is is possible to maximize sales revenue or market share and profit at the same time? Why? 2. Are all demain curves downward sloping ? Why? What is the meaning for firms of demand curves that do or do not slope downward? 3. If the firm reduces the price for its product, will it decrease its revenue? Why? 4. Are al