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Demand & Supply

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

BASE CASE - MODIFIED BREAKEVEN ANALYSIS

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

Problem Set

1. Suppose the demand curve for a good is given by the equation P = 200 - .5Q, and the supply curve is given by the equation P = 50 + .25Q, where P = price and Q = quantity. A. What are the equilibrium price and quantity? B. Suppose a sales tax of $9 / unit is levied. Find the new equation for demand, the new equilibrium Q

DEMAND ANALYSIS

Chapter 5 DEMAND ANALYSIS Mark Hirschey Managerial Economics 11th edition. Q5.5 "When I go to the grocery store, I find cents-off coupons totally annoying. Why can't they just cut the price and do away with the clutter?" Discuss this statement and explain why coupon promotions are an effective means of promotion for groce

Market Demand and Price Elasticity

I need help with this study question. Professor Kenneth Warner of the University of Michigan has estimated that a 10 percent increase in the price of cigarettes results in a 4 percent decline in the quantity of cigarettes consumed. For teenagers, he estimated that a 10 percent price increase results in a 14 percent decline in

Economics and management

1. Consider the following table for the demand and supply of a certain product: Price Quantity Demanded Quantity Supplied $1000 0 500 $750 125 375 $500 250 250 $250 375 125 What is the equilibrium price and quantity? P = $250, Q = 125 P = $500, Q = 250 P = $750, Q = 125 P = $1000,

CAPM

1. You are given the following information on two securities, the market portfolio, and the risk free rate: (See attached file for full problem description with chart) For parts a, b, and c, use the above Table. a. Draw the Security Market Line. b. What are the betas of the two securities? c. Plot the two securities o

Increase minimum wage

The AFL-CIO has been a proponent of increasing the minimum wage. Please help me to understand why.

Supply Curve

The question was to assume that the market for electric toasters is competitive and that the quantity supplied per year depends as folows on the price of a toaster: Price of a Toaster Number of Toasters Supplied (millions) 12

Labor Econ

Imagine a Congressman is proposing to improve the welfare of every citizen in the U.S. by paying a base income of $1,200 a month to everyone regardless of income,a ssets, age, etc. The argument of the congressman is that by doing so people could work in jobs "they really like" instead of working just to earn an income. What do

SBC & ATT Merger

With the merger of SCB and ATT, what, if any, cost advantages might be created? What actions, if any, do you think the government will take? are there specific facts to support your answers What will be the welfare effects, if any of the merger?

Cost & Demand

Please step me through the calculations & logic behind this situation: You are the CEO of PC Warehouse, a firm which manufactures customized computers to meet the specifications of their clients. Nearly 85% of your customers are businessmen. Your firm is not the only business that makes the custom computers, but competes wi

Estimate the demand of one of your hotels

As the manager of a local hotel chain, you have hired an econometrician to estimate the demand of one of your Hotels (H). The Estimation has resulted in the following demand function: Q (H) = 2,000 - (PH) - 1.5 (PC) - 2.25P ( P SE) + 0.8 (P OH)+ .01 (M) Where the following to solve: P= Price (H) is Hotels, (PH) is the pr