Monopolist Demand and Cost Function
Let the demand and cost functions of a monopolist be: P= 100-3q+4√A C=4q2+10q+A where P=price, q= quantity, A=advertising What is the level of q and A that max profit?
Demand & Supply
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The Bearer of a Tax Burden
Suppose the demand for a given type of antibiotic is Q-100,000. What is the elasticity of demand? Draw a price per unit and quantity of units two space diagram to show the effect of a specific tax of $1 per dose on the equilibrium market price. Who will bear the burden of this tax?
Why do Farmers have a Relatively Inelastic Demand
Farmers have a relatively inelastic demand for their crops. Suppose there is a bumper crop year (an unusually large harvest). Will farmers be happy or sad about the news there has been an unusually large amount of their crop produced this year? Why?
Price to set for its latest animated movie
Suppose, in deciding what price to set for its latest animated movie, Disney decided to charge either $14.95 or $12.95 for a video or DVD. It estimated the demand for these videos or DVDs to be quite elastic. What price did it choose and why?
Birthrate and the Market for Babysitting Services
The small town of Middling experiences a sudden doubling of the birth rate. After three years, the birth rate returns to normal. a. The market for an hour of babysitting services in Middling today b. The market for an hour of babysitting services 14 years into the future, after the birth rate has returned to normal, by whi
Many "on-ground" university campuses sell parking permits to their students allowing them to park on campus in designated areas.
Many "on-ground" university campuses sell parking permits to their students allowing them to park on campus in designated areas. Although most students complain about the relatively high cost of these permits, what annoys many of these students even more is that after having paid for their permits, vacant parking spaces in the d
The main thing is that many farmers have converted their acreage from wheat to corn to take advantage of the demand for ethanol
The main thing is that many farmers have converted their acreage from wheat to corn to take advantage of the demand for ethanol, used in gasoline and which draws very high prices for growers. Farmers that had planted wheat for 50 years are now planting corn. How will this affect the supply and demand?
Supply and Demand: Equilibrium Price and Quantity
Please look at the attached problem and help understand where everything goes. Draw supply and demand for a product showing the equilibrium price and quantity. Illustrate what would happen if all the transactions costs of market were reduced. Generally, what is the impact of transactions costs on the operation of the marketpl
What would have happen to gasoline production and consumption if the government had prohibited post-Katrina price increase?
The quetion are self practices on supply and demand. 3. what would have happen to gasoline production and consumption if the government had prohibited post-Katrina price increase.(see news page 55). 6. In fig. 3.8 why is the organ demand curve downward-sloping rather than vertical? 7.The shortage in the organ market (fig 3.8)
Transportation :SUMIF and SUMPRODUCT functions
This is a study guide for me to use to study for an upcoming exam. I need detailed solution so I can be familiar with how to do a step by step solution. Excel is very hard for me unless I can see it clearly. Please see attachment. PROBLEM 1. Given the following information and diagram, determine the lowest cost routes to
Annual demand and supply for the Entronics company is given by
Annual demand and supply for the Entronics company is given by: QD = 5,000 + 0.5 I + 0.2 A - 100P QS = -5000 + 100P where Q is the quantity per year, P is price, I is income per household, and A is advertising expenditure. a) If A = $10,000 and I = $25,000, what is the demand curve? b) what is equilibrium
Regulatory Effect on Equilibrium: Peak Period Computations
Peak Period Computations Consider an electricity market with a daytime (peak-period) inverse demand of P=160-Q, and a nighttime (off-peak) inverse demand P=80-Q, where P is the price of electricity and Q is units of electricity. The marginal cost of supplying electricity is: MC=Q. Right now the utilities face a regulated pric
Regulatory effect on equilibrium
Consider an electricity market with a daytime (peak-period) inverse demand of P=160-Q, and a nighttime (off-peak) inverse demand P=80-Q, where P is the price of electricity and Q is units of electricity. The marginal cost of supplying electricity is: MC=Q. Right now the utilities face a regulated pricing regime - they are requ
Monopoly effect on consumer/producer surplus
The inverse market demand curve is P=140-Q, and the inverse supply curve is P=20+Q. Assume that the closed market is NOT competitive, but is controlled by a single supplier. Again using the same inverse supply and demand curves, compute the following: 1. the monopoly equilibrium production/consumption level 2. the market pr
Trade effect on consumer surplus/producer surplus
The inverse market demand curve is P=140-Q, and the inverse supply curve is P=20+Q. Assume that the market is in the equilibrium. Now, the market is opened up for trade. The world price is $60 per unit, and the country is too small to able to influence this price. Hence, the only option the country has is to buy or sell at the
Industry Research - Airline Industry
Hello all, I am looking for assistance writing this paper on the AIRLINE industry. Any help would be greatly appreciated! Create an economic profile of the AIRLINE industry. Discuss how the following impact the industry. o Shifts and price elasticity of supply and demand o Positive and negative externalities o Wage inequal
finding the equilibrium fare
The marginal and average cost curves of taxis in metropolis are constant at $.20/mile. The demand curve for taxi trips in metropolis is given by P = 1 - .00001q, where P is the fare, in dollars per mile, and Q is measured in miles per year. The industry is perfectly competitive and each cab can provide exactly 10,000 miles/yr of
Suppose you are hired to manage a small manufacturing facility which produces Widgets.
I need to answer these two questions for homework and show my calculations. Please see attached file for full problem description. 1) Suppose you are hired to manage a small manufacturing facility which produces Widgets. a. You know from data collected on the Widget Market that market demand has recently increased and mar
Inverse Market Demand Curve
With an inverse residual demand curve of P=50-4Q and a plan to produce 150 units which of the following would be the inverse market demand curve: P=200-4Q, P=200-Q, or P=150-4Q. Please show the steps to reach this conclusion.
Pricing with Import Quota
With country A's demand and supply for a product being Qd= 60,000 - 400 P and Q SD =20,000 + 500 P and country B's supply being Q SF = 20,000 + 100 P what would the new price be if country A has an import quota of 13,000? Please show me the steps to reach the new price of either $15, 20, 30, 40, or 45. SD = Supply Domestic
Why changes occurred in supply, demand, and price
Do you have any article or notes relating to: Find an article pertaining to a change in the supply, demand, and pricing of a particular product or service. Explain why changes occured in supply, demand, and price.
Dividend growth and present value.
If a company experiences dividend growth of 30% for three years and 5% there after based on a $1.00 per share dividend in year zero, what is its value? (assume investors demand a return of 12% from similar companies)
Demand Elasticity Problems
Please can you give some ideas on how to solve the problem, even if you can't help with the final solution..Thank you! The demand for bus transportation in a small city is P=100-Q, where P is the price of the bus fare, and Q are rides per month (units=10,000 rides). (a) What is the revenue function for bus rides? Plot this
Determine the equilibrium interest rate.
Interest rate % Demand for money supply of money (billions of dollars) billions of dollars 8% $100 $200 6 200 200 4 300
Calculate the arc elasticity implied by the initial response to EZ's price increase.
5. Ez Auto Wash recently decided to raise its regular price on wash and wax cycles from $5 to $7 following increases in the costs of equipment and materials. Unfortunately, sales dropped sharply from 6,000 to 2,000 per month. In an effort to gain lost sales, EZ ran a coupon promotion featuring $4 off the new regular price. Cou
Market equilibrium price and quantity
Supply curve = 11 + P/3 Demand curve = 15 -P for private school Government voucher gives 3,000 to parents.... Equilibrium price = ? equilibrium quantity = ? consumer surplus and government expenditure = ? I know Pd = Ps and Qd = Qs......answer keeps coming out negative price?
Supply and Demand
Could you please write four paragraphs or so in APA style if your giving me information for another publication, using economic terms and demonstrate with a elastic demand chart concerning Elastic Demand and Price Discounts.
Supply and Demand
The point of equilibrium is the intersection of the supply and demand curves. The point of equilibrium changes based on movements in these two curves. What are some of the ways these curves shift and what is the corresponding change to the point of equilibrium?
Supply and Demand
The supply of healthcare could be equated to the number of physicians, nurses, MRIs, CTs, ORs and etc. Demand for healthcare can be equated to the number of visits a physician sees, MRIs preformed, etc. How does supply affect healthcare? How does demand affect healthcare? What are some good examples of how supply and demand
Arc-Approximation Formula
A) Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity,price) points of (50, $10) and (54, $8). b) Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 10% increase in the price of its close substi