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
Please explain step-by-step how to do these. thanks! 6) In the above diagrams assume the following: MC intersects AVC @ P= $8, Q=40 and MC intersects ATC @ P= $12, Q = 50. (Min MC =$ 4). In the market demand schedule on the right, at a price of $16, the quantity demanded = 6000, and at a price of $12 the quantity demanded r
The rule for maximizing net revenue (total revenue minus total cost) is: Take any action if, but only if, the expected marginal revenue exceeds the expected marginal cost. What is marginal revenue? How is it related to demand? You can test your grasp of this key concept by examining the case of Maureen Supplize, who runs a yacht
2. The MacWend Drive-In has determined that demand for hamburgers is given by the following equation: Q = 205.2 + 23.0A - 200.0PM + 100.0PC + 0.5I (1.85) (2.64) (-5.61) (2.02) (4.25) where Q is the number of hamburgers sold per month (in 1,000s), A is the advertising expenditures during the prev
#1 Earlier we noted that the rule for maximization set forth in the text contradicts some well honored traditional principles such as " Never give up", "Anything worth doing is worth doing well," or "Waste not. want not." Explain the contradiction for each of these rules #2 Many candidates for political office, particularly
A consumer spends all of her income on two goods, coffee and doughnuts. She purchases coffee at 25 cents a unit with a total utility of 800 and a marginal utility of 12. Doughnuts are purchase at 75 cents a unit with a total utility of 200 and a marginal utility of 24. In order to reach consumer equilibrium, she should consume:
53. A consumer spends all of her income on two goods, coffee and doughnuts. She purchases coffee at 25 cents a unit with a total utility of 800 and a marginal utility of 12. Doughnuts are purchase at 75 cents a unit with a total utility of 200 and a marginal utility of 24. In order to reach consumer equilibrium, she should co
47. The following is a complete and correct definition of the demand curve for commodity X. The demand curve shows, for a given market: A) how much of X would be bought at the equilibrium price. B) how, as people's incomes rise and they have more money to spend, their purchases of X would increase. C) how the amount of
1. "If price rises then demand decreases. But if demand decreases, then equilibrium price will fall. Therefore, one cannot say with certainty what the net effect of an intitial decrease in price will be." Is this statement correct? Are all the terms used correctly in this statement? Let me know your thoughts. How would you des
Qs = Qd P= 3+.000083333Qs P=7-.00005Qd set these equal to each other I
An online retailer mails out catalogs. You might browse through one and decide to order. You call a toll free number and place your order and it will arrive in several days by post or UPS. However, what you probably don't know (since you only live at one post office address) is that the merchant sends out multiple catalogs at th
Assuming a 15% reserve ratio, an increase in deposits of $300,000 could eventually result in: A) a $2 million increase in the money supply. B) a $345,000 increase in the money supply. C) a $45,000 increase in the money supply. D) a $1.5 million increase in the money supply. E) there would be no change in the mon
1. The United States represents a small part of the world orange market. a. Draw a diagram depicting the equilibrium in the U.S. orange market without international trade. Identify the equilibrium price, equilibrium quantity, consumer surplus, and producer surplus. b. Suppose that the world orange price is below the U.S.
Market Equilibrium (example question) The following relationships describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum: QD = 317,500 - 10,000P (Demand) QS = 2,500 + 7,500P (Supply) Where Q is quantity measured in pounds of aluminum scrap metal, and P is the price in cents
One of the more pressing issues of world population concerns those numbers not being much of a viable labor force today, for 2010 and beyond. If that is the case, the demand for labor is really segmented into (1) healthy individuals with market skills versus (2) the rest of the population. Explain this concept/idea.
I am stuck at price elasticity, so if you can help me out.
1: The demand for personal computers can be characterized by the following elasticities: Price elasticity = -5 Cross-price elasticity with software* = -4 Income elasticity =2.5 *relates a change in computer prices to changes in the quantity demanded of software Indicate whether each of the following statements is tru
Consider the problem of maximizing u(c,l) subject to pc + wl = wT + Y, where c is consumption, l is leisure time, T is the total time endowment, and Y is non-wage income. Show that if leisure is an inferior good, then the labor supply function is upward-sloping. b) Given the problem of maximizing ln x subject to α Ͱ
A. An economist estimates that a new tax on labor income has had an effect on the labor supply of affected taxpayers (in other words, affected taxpayers work the same amount of hours after the tax is imposed). He therefore concludes that the excess burden of the new tax is zero. Do you agree? Define "excess burden", and explain
The city of Trenton is considering a substantial annual per employee tax on Trenton State College. Suppose that the labor supply curve to TSC is relatively flat because the employees have alternative places to work, and that the College has limited liability to substitute machines or other inputs for people. a. Show this s
In Risainia (a hypothetical country), the prices of commodities such as food and clothing are set in a free market, but housing is heavily subsidized by local governments. A two-bedroom apartment, for example, might rent for $10.50 per month. (Utilities and other fees increase the cost to about $350.) Consider the following st
Cross-Price Elasticity. B.B. Lean is a catalog retailer of a wide variety of sporting goods and recreational products. Although the market response to the company's spring catalog was generally good, sales of B.B. Lean's $140 deluxe garment bag declined from 10,000 to 4,800 units. During this period, a competitor offered a wh
What is supply? What is law of supply and what are the determinants of supply?