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Demand & Supply

Economics questions

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...

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

Changes in the price of a key commodity

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?

Supply and Demand and Equilibrium

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

Equilibrium price problem

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

Simple Work: The Costs of Production

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

Superior Metals Company

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

Labor economics

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

Demand and supply in factor market notes

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?

Factor Maket problem

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

Tort problem

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

Revenue-profit; demand curve; cost curve; price-revenue

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

Social Welfare Implications of Price Discrimination

1) Price discrimination is often defended on the basis of equity (Charge less for the poor than the rich!). Is this the only rationale for price discrimination? 2) If a market price is determined by a dominant price leader, what happens to the price (gets higher or lower) if the number of the followers increase? (First revi


Please see attachments. I have to analyze these for a job-related assignment and am under a time crunch. If I can just get an idea of the graphs and so forth I can build my report better. The attachment named "Problems" are what needs to be analyzed The PP is just directions and the Excel sheet is the generic tool

short-run cost structure

The demand and cost estimates Q = 90 - 6.5P and TC = 150 + 3.5Q Unfortunately what we didn't realize at the time that our fixed cost were underestimated by at least 30 percent. this means that we'll have to adjust upward our price by at least 30 percent to cover the added fixed cost. In any case theer is no way to in the

Economics help

You have been retained as an analyst to evaluate a proposal by your city's privately owned water company to increase its rates by 100 percent. The company has argued that at the present rate level, the firm is earning only a 2-percent rate of return on invested equity capital. The company believes a 16-percent rate of return is

Help with average marginal revenue

Chapter 10 Problem 2 In 2001, the box industry was perfectly competitive. The lowest point on the long-run averge cost cureve of each of the identical box producers was #4, and this minimum point occured at an output of 1,000 boxes per month. The market demand curve for boxes was : Qd = 140,000 - 10,000P Where P is the

Question about Income Elasticity

An income elasticity (Ey) of 2.0 indicates that for a _____________ increase in income, ____________ will increase by __________________. a one percent; quantity supplied; two units b one unit; quantity supplied; two units c one percent; quantity demanded; two percent d one unit; quantity demanded; two un

Price elasticity

The demand function for bicycles in Holland has been estimated to be: Q = 2,000 + 15Y - 5.5P Where Y is income in thousands of euros, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euros and Y = 15 (000) euros, determine the following: a. Price elasticity of demand b.

Help with costs

1. (4 pts.) Joe faced the following options: (a) pay $10,000 tuition to attend classes at Econ Tech; (b) work as a fry cook for $10,000; or (c) work as a waiter at an elite restaurant and earn $20,000. What is Joe's opportunity cost of attending classes at Econ Tech? 2. (8 pts.) Sun City, Arizona, a retirement community that

Summarize general equilibrium theory

Suppose that the demand for steel in Japan is given by the equation Qs(demand)= 1200-4Ps+Pa+Pt, where Qs is the quantity of steel purchased (millions of tons per year), Ps is the price of steel (yen per ton), Pa is the price of aluminum (yen per ton). The supply curve for steel is given by Qs(supply)=4Ps. Similarly, the deman

Competitive Markets

1. What is a competitive market? Briefly describe the types of markets other than perfectly competitive markets. 5. Popeye's income declines and as a result he buys more spinach. Is spinach an inferior or a normal good? What happens to Popeye demand curve for spinach? 3. If the elasticity is greater then 1, is demand elast

Comparison Methods

Stayner Catering is considering setting up a temporary division to handle demand created by a special tourist promotion being made by City of Toronto during the coming year. They will invest in tables, serving equipment and trucks for a one-year period. Labour is employed on a monthly basis. Warehouse space is rented monthly, an

Economics and TVM

(See attached file for full problem description) --- 5. Given the demand and supply functions below Demand: P = -0.0056Q + 12 Supply: P = 0.0033Q + 8 (Assume that P represents the price per unit, and Q represents the quantity of units demanded at that price.) (a) Use algebraic methods to find the Equi