4. The market for paper in a particular region in the U.S. is characterized by the following demand and supply functions: P = 80 - 0.0005 QD P = -20 + 0.0005 QS where QD is the quantity demanded of paper in 100 pound (lb.) lots, QS is the quantity supplied of paper in 100 pound (lb.) lots, and P is
Demand for flower bouquets in a suburban town is described by: QD = 50 - 5P + 2Y, where Q is quantity, P is price per unit, and Y is an index of consumer income. Similarly, supply is described by QS = - 5 + 10P. a) If Y = 100, what is equilibrium price and output? b) If Y rises to 122.5, what is the new equilibrium price a
The Hanover Manufacturing Company believes that the demand curve for the product is: P= 5-Q, where P is the price of its product (in dollars) and Q is the number of millions of units of its product sold per day. It is currently charging a price of $1 per unit for its product. A. Evaluate the wisdom of the firm's pricing polic
(a)Suppose a decrease in consumers' incomes causes a decrease in the demand for chicken and an increase in the demand for potatoes. Which good is inferior and which is normal? Explain your reasons. (b)How will the equilibrium price and quantity change for each good?
You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scale in the industry, entry by new firms is not profitable. DaimlerChrysler has asked your company and your only rival to simultaneously submit a price quote for supplying 100,000 front and rear windshield
Assume that you are the sales manager for GM or Ford cars. How would you make the demand for GM and Ford cars shift to the right (demand increase) and inelastic so that more buyers purchase them? Explain in detail.
The following questions from the problem below are: (1) Compute the EVPI and interpret it. (2) Determine the best plant size using Hurwicz (Alpha = .4) criterion (Prob. 3: Decision Analysis) A firm must decide whether to construct a small, medium, or large stamping plant. A consultant's report indicates a 0.2 proba
I am having trouble answering the following questions to the problem below. I am required to: (1) Analyze the problem using a decision tree, and (2) Determine the Maximin Alternative (Prob. 3: Decision Analysis) A firm must decide whether to construct a small, medium, or large stamping plant. A consultant's report i
If the demand for farm products were elastic rather than inelastic, would the good/bad paradox still exist? Why or why not.
1. Illustrate with supply and demand curves. A. The price of a good rises, causing the demand for another good to fall. B. A shift in supply causes the price of a good to fall. The shift must have been an increase in supply. C. A rise in income will cause the demand for inferior goods to fall, pushing prices down. D.
Provide an actual (real-world) example that could be used to demonstrate the price inelasticity of demand for a given good. Be sure to provide a quantitative definition of price inelastic demand as well as support for the real-world example you provide.
Need some assistance in summarizing the content of this simulation according to the following questions: (at least 700 words) 1. What are the advantages and limitations of supply and demand identified in the simulation 2. Select an organization and identify the market structure for the organization. 3. Analyze how or
Need assistance in determining the best pricing strategy by answering the attached questions 1-7 based on the spreadsheet provided. 1. Include an assessment of whether the current fare maximizes profits. If not, identify the fare that should be charged. Give evidence that it is the best by showing that profits are highest if
1. Two partners who owns IT Business Solutions, a company supplying specialist software, operate out of an office in Fourways, Johannesburg but have discovered a vacant office building close to Sandton City. One of the partners favours moving to the new location because she believes the additional business gained by moving will
Could you identify and describe the concepts of scarcity and opportunity costs. Also, explain the laws of supply and demand and how they are related to the concepts of scarcity and opportunity costs in decision-making. Finally give me something other then a text book definition on market equilibrium and explain how it is determi
I can't find anywhere in my textbook a "direct" answer to this question. I tend to think that it's neither true nor false, because quantity discounts can be a form of price discrimination under certain circumstances. I guess I just need confirmation. Can someone please give me guidance on this question? "Quantity discounts
Part 1) do the following cause an upward or downward movement along a given demand (or supply) curve, or instead involves an outward or inward shift in the relevant demand (or supply) curve for the product in question. part 2) How will they impact the market equilibrium price and quantity change from the original equilibriu
Please show work. Thanks! Based on historical data regarding sales, War Games management forecasts demand for the game to be P= 50- 0.002Q, where Q denotes unit sales /year, & P denotes price in dollars. The cost of manufacture is C= 140,000 + 10Q. Calculate the following, assuming that War Game maximizes profit: a. quanti
1. Illustrate the following with supply and demand curves. Before economic reforms were implemented in the countries of Eastern Europe, regulation held the price of bread substantially below equilibrium. When reforms were implemented, prices were deregulated and the price of bread rose dramatically. As a result, the quantity
I need help in determining whether each of the following would lead to an increase, a decrease, or no change in the quantity of money people wish to hold. Also determine whether there is a shift of the money demand curve or a movement along a given money demand curve. a. A decrease in the price level b. An increase in real o
1-The following data represent 5 points on the supply curve for orange juice: Price Quantity (millions of gallons) 1 100 2 300 3 500 4 700 5 900 a- Graph the points of these supply and demand curves for orange juice. Be sure to put price on the vertical axis and quantity on the horizontal axis. b- Do these points see
Suppose that De Beers is a single-price monopolist in the market for diamonds. De Beers has five potential customers: Raquel, Jackie, Joan, Mia, and Sophia. Each of these customers will buy at most one diamond?and only if the price is just equal to, or lower than, her willingness to pay. Raquel's willingness to pay is $400; Jack
Accounts payable . . . . . . . . . . . . . . . . . . . . . .. $ 35,000 Accounts receivable . . . . . . . . . . . . . . . . . . . . . . 65,000 Advertising expense . . . . . . . . . . . . . . . . . . . . . . 15,000 Cash . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 19,500 Supplies expense . . . . . . . . . . . . .
The switch to the use of HFCS from sugar in soft drinks was prompted in large part by its relatively lower price. Assuming a competitive market, what effect would this change have on the equilibrium price and output for soft drinks? price rises, output falls price falls, output rises price rises,
Please see attached file. Use the figure below to answer the following questions: a. The elasticity of demand over the price interval $11 to $10 is __________. b. The elasticity of demand over the price interval $7 to $5 is __________. c. The elasticity of demand over the price interval $5 to $3 is __________.
The following figure shows demand, marginal revenue, and short-run costs for a price-setting firm. a. To maximize profit the firm should produce an output of ________ and set a price of $_______. b. At this level of output total revenue is $________, total cost is $________, and the firm earns a profit of $________.
The demand for agricultural output is price inelastic. This means that if farmers, taken collectively, have a bumper crop, they will experience, a. lower price, greater quantities sold, and lower incomes b. higher prices, greater quantities sold, and higher incomes c. Lower prices, lower quantities sold, and lower incomes
The price of meat falls in the market. Apply the substitution and income effects to the purchase of meat given the lower price. How is this related to the law of demand? Hint: use chicken as a substitute good in your discussion.
The price of meat falls in the market. Apply the substitution and income effects to the purchase of meat given the lower price. How is this related to the law of demand? Hint: use chicken as a substitute good in your discussion. Please help me with this question.
I can't figure out how to go about finding how much the firm will charge. Suppose that a price-discriminating monopolist has segregated its market into two groups of buyers, the first group of described by the demand and revenue data in table 1. The demand and revenue data for the second group of buyers is in table 2. Assum