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
I need to define the cost function of a firm given the production function, rent and labor costs. Also about the equation that would minimize costs and the respective ratio.
1. In 1999, the bidding for a human kidney offered on the Internet auction site eBay hit $5.7 million before the company put a stop to it citing a federal law that makes it illegal to sell one's own organs. Using a supply and demand graph, explain this bidding phenomenon given that the federal law mandates a price of zero for
Supply and Demand, Elasticity 1) In the U.S. it is illegal to buy or sell heroin, yet there is still a market. Suppose the government's main goal is to decrease the amount of heroin consumed and proposes three solutions. For each of these, show what would happen to the market price and quantity for heroin. Briefly discuss you
Suppose that it is possible to provide internet backbone capacity at a constant marginal capital investment of $5 per megabit per second (mb/s). There are no marginal costs. There are two time periods during the day (for simplicity each will be 12 hours): day and night. During the peak period (daytime) of 250 business days p
Choose 3 Micro concepts that are important or interesting, describe them briefly, explain how all three are inter-related, and what relevance they would have to one's life.
There are indeed several reasons why economic profits are short-lived: new-entrants with the same strategy, competitive reaction by producers of differentiated products, and close enough substitutes, etc. So that I can remember something that is conceptually simple, I would like to see a description in graphical terms of the mec
I am looking to sell some T-shirts at my university and want to figure out the economics of the market. The total demand for these t-shirts comes from two groups: group A and group B. The demand curves for these two groups are given by the following equations: Students; Qa = 120 − 10Pa Faculty: Qb = 48 − 2Pb
Illustrate, show supply and demand curves given the information below. Solve for equilibrium price and quantity. What will happen when price is not equal to its market-clearing level? Consider situation when demand curve changes and provide two reasons that might explain such shifts in aggregate demand.
Price Quantity Demanded Quantity Supplied $9 100 Million 40 Million $10 90 Million 60 Million $11 80 Million 80 Million
Suppose the price of apples rises from $3 a pound to $3.45 and your consumption of apples drops from 30 pounds of apples a month to 21 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?
Describe three ways in which the Federal reserve can change the money supply. If the Federal Reserve is going to adjust all of these tools during an economy that is growing too quickly, what changes would they make? If the Federal Reserve is going to adjust all of these tools during an economic recession, what changes woul
"US consumer is seen as big loser in new restraints on imported steel" said a recent Wall Street Journal headline. The big gainers from the quota limitations on imported steel were predicted to be US producers, who would sell more, and foreign producers, who would sell less but at a higher price. Is this prediction correct, if s
Please help with the following problem. Air Express, an overnight mail carrier, provides one flight per day from Portland, Maine to Hawaii. Currently Air Express flights have been operating at 80% capacity (maximum capacity 400 pounds). Therefore each flight has the potential to carry 80 additional pounds of mail. Air Expres
The Efficient Number of Firms Suppose the oil industry in some country is perfectly competitive and all firms extract oil from a common, and endless pool. The cost of operating a well is #1,000 for one year, and the firm can sell any amount it chooses at the world price of $10 a barrel. If N wells are operating, the output
A) In response to increasing thefts by drug addicts, the government passes legislation increasing both the penalty and probability of punishment for suppliers of illegal drugs. What would be a good prediction of what would happen to the rate of property crime committed by drug addicts if the price elasticity of demand for illega
P=200-3Q P=20+Q A) How do I know which equation is supply and which is demand? How can I calculate the amount of shortage or surplus that would prevail at a price of $25 per unit? In terms of economic surplus, who gains and who loses? B) Using the same supply and demand equations, can you explain and determine graphically
Question 1: analyze developments in demand and supply in the past few years in a market known to you (e.g. where you worked or a housmg market known to you). Include in your analysis an explanation of the determinants of demand and supply, recent changes in demand and supply, elasticity of demand and supply, and the impa
Back in the 1960s, President Lyndon Johnson passed legislation that increased expenditure for both the Vietnam War and social problems in the US. Since the US economy was operating at its full employment level when President Johnson did this, he appeared to be ignoring what economic concept?
Problem Set #5 Pizza restaurants are identical and exist in a market that is perfectly competitive. Marty's pizza parlor faces the following demand and costs... a) Derive the profit-maximizing output quantity and the profits that are achieved. b) Is the market in long-run equilibrium? If not, decribe what will happen in t
Should the company use price-discrimination strategies to improve profitability? Please see the attached for full background.
Given these figures (see attachment), how to calculate the compounded annual rate of growth for the third quarter ( 2 decimal places I suppose) for: 1) Real GDP 2) Final sales 3) Gross domestic purchases 4) FSDP 5) Is GDP due to strong US demand, or other factors? 6) What percentage contribution did change in business i
A manufacturer has estimated that the demand for its product as Qx = 500 - 2Px + .5I + .65Pz - 1.8Py where Qx is the quantity demand, Px is the price, I is average annual income (currently $14,000). Pz and Py are the prices of related goods. Total costs are given by TC = 3,500,000 + 500Q Suppose that PZ= $300
The Rising Cost of Apples The price elasticity of demand is a measure of the responsiveness of demand to a change in price. If demand changes by more than the price has changed, we describe the good as price-elastic. If the demand changes by less than the price has changed we describe it as price-inelastic. The following para
Explain why housing prices vary from city to city. Clearly explain how supply and demand affect the prices of the homes. I have done the research on various markets but I and the cost of housing but I am not sure how to explain why the prices vary. Washington Atlanta Denver New Jersey San Francisco $350,000 $135,000 $169,
I need to know what The United States of America is in demand for. For example,specific fruits oil etc, also and how does this affect our economy, how does inflation tie into this and who determinds the prices for these items?? Thanks, Rudy
Suppose that the typical snowboarder/skiier visiting Mount Mogul ski resort on a typical day would be willing to pay for lifts up the mountain according to the following schedule. (see attched file) a) Why does the WTP schedule slope downward ? b) Suppose all skiers at Mount Mogul had the same WTP schedule as this skier
Last month, concerns that political infighting in Moscow might choke future supplies drove the price of palladium to nearly $1,000 an ounce. Although there is less than an ounce of palladium in most vehicles -- it is used inside the catalytic converter -- that kind of price surge means palladium suddenly is becoming a big-ticket
What would be the impact on revenues generated from sales of a. consumer line desktops and b. high profile enterprise level desktops if the firm raised the price of the product? What if the firm lowered the price?
Is the price elasticity of demand for desktops (comsumer line & high profile sommercial line) price elastic or price inelastic?
There are six condition given. Assuming only PRICE changes. 1. Elastic demand and Price rises. 2. Inelastic demand and Price rises. 3. Elastic demand and Price falls. 4. Inelastic demand and Price falls. 5. Unit elastic demand and Price rises. 6. Unit elastic demand and Price falls. Which three should work for those