In Bayonne, NJ there is a large beauty salon and a number of smaller ones. The total demand function for hair styling per day is Q=180 minus 10P, where P is in dollars The marginal cost function of all the small salons together is SMCf = 4+ 0.1Q and the marginal cost function of the dominant or leading salong is MCl= 7+0.1Q
Difficulty identifying formulas for use. also, do multipliers and autonomous spending have to be calculated for item 1/IS curve? For the last item, does autonomous consumption and investment have to be computed to derive? Assume following (equations) summarize/represent structure of economy. If: C=Ca + 0.75(Y-T) Ca=800-25
1. Consider the choices of two groups of women ages 30 to 50. All the women in one group have a college education. All the women in the other group have less than a high school education. Which of the two groups will participate more in the workforce? Which of the two groups will bear a larger number of children on average?
Speedy delivery is a package carrier which serves the Midwest It specializes in the delivery of auto parts to independent auto repair shops. It competes against very large firms like FedEx, UPS, and US Postal. The demand for the firm's services has been increasing as more consumers keep their cars longer and have them fixed r
(Be sure to use a supply and demands diagram) Because bagels and cream cheese are often eaten together, they are complements. a. We observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen. What could be responsible for this pattern-a fall in the price of flour or a fall in
The United States currently imports all of it's coffee. The annual demand for coffee by US consumers is given by the demand curve Q = 250 - 10P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee. World producers can harvest and ship coffee to us distributors at a constant marginal (= aver
1. Airline companies sometimes fly airplanes that are one quarter full between cities. Some people point to this as evidence of economic waste. Is this economic waste? Would it be better to have fewer airline companies and more full planes? 2. Draw a diagram to identify a monopolistic competitor that is incurring losses. 3
Dozens of Internet Web sites offer quality auto parts for the replacement market. Their appeal is obvious. Price-conscious shoppers can often obtain up to 80 percent discounts from the prices charged by original equipment manufacturers (OEMs) for such standard items as wiper blades, air filters, oil filters, and so on. With a
Given: Good X and Good Y A consumer's relative preferences change for good X. Use the full indifference curve framework to graphically show, and explain, the effect on the demand curve for good X that these changes in the consumer's relative preferences have.
How would you think Equilibrium Price (Ep) and Equilibrium Quantity (Eq) would be impacted if the banking industry fell under other market structures? Why do you think that would be the case?
1. The four major characteristics of a purely competitive market structure are _________________, __________________________, _______________________, ________________________. 2. The demand curve facing a pure competitor is ____________________ elastic; such a demand curve is (horizontal, vertical)_______________
Due to severe damage, a gas pipeline supplying gas to Arizona was shut down for a few weeks in the summer of 2003. Gas became scarce in Arizona, and prices rose, causing consumers to panic. Address the two questions in the analysis of this event's affect on the market equilibrium. 1) Was there a shift in the supply curve,
On the basis of three individual demand schedules on the next page, and assuming these three people are the only ones in the society, determine (a) the market demand on the assumption that the good is a private good and (b) the collective demand schedule on the assumption that the good is a public good. Explain the differences,
Suppose that economists observe that in a closed economy an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. * If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity to consume (MPC) to be? * Now suppose that th
1. Caviar and champagne are complements. Recently pollution has been a problem in the Volga River, where much of the world's caviar originates. The sturgeon that live in these waters are laying fewer eggs than before. Show graphically and explain the effects on the market for caviar and the market for champagne. 2. Apple an
Two firms compete in a homgeneous product market where the inverse demand function is P=10-2Q(quantity is measure in millions). Firm 1 has been in business for one year, while firm 2 just recently entered the market. Each firm has a legal obligation to pay one year's rent of $1 million regardless of its production decision. F
The Total operating revenus of a public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1, and the price elasticity of demand for public transportation has been estimated to be -0.4. By law, the public transportation authority must take steps to
Directions: For each question, draw a market in equilibrium, labeling the initial equilibrium price and equilibrium quantity. Then shift the appropriate curve and label the new equilibrium price and equilibrium quantity. Next, fill in the blanks to describe what happened. 1. The price of a substitute for this go
The U.S. Department of Agriculture, http://www.usda.gov/nass, publishes charts on the prices of farm products. Go to the USDA home page and select Charts and Maps and then Agricultural Prices. Choose three farm products of your choice and determine whether their prices (as measured by "prices received by farmers") have generally
How would government react to sudden, large changes in the price of a key commodity, such as gasoline, electricity, or prices on stocks on the New York Stock Exchange?
For the following events, tell me what happens as a result of the following events. You do not have to draw any graphs. 1. Please tell me what happens to the equilibrium price, and equilibrium quantity. 2. With regards to whether demand or supply changes, please use a plus sign (+) for the increase and a minus sign (-) for t
Please help answer the following three questions based on the data given: Data: Bushels demanded per month Price per bushel Bushels supplied per month 45 $5 77 50 4 73 56 3 68 61 2 61 67 1 57 Questions: 1. Refer to the above data, what is equilibrium price? 2. If the price i
Draw hypothetical supply and demand curves for tea. Show how the equilibrium price and quantity will be affected by each of the following occurrences: a. Bad weather wreaks havoc with the tea crop b. A medical report implying that tea is bad for your health is published c. A technological innovation lower the cost of produ
A monopolistic firm operates in two seperate makets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows: Market A p = 15 -Q Market B p = 11 -Q The company estimates its total cost function to be: TC = 4Q Calculate: a. Quantity, total revenue a
Industry demand is given by: QD = 1000 - P All firms in the industry have identical and constant marginal and average costs of $50/unit a. If the industry is perfectly competitive, what will industry output be? What will be the equilibrium price? What profit will each firm earn? b. Now suppose that there are five f
Full Description: for the data below, I have to solve the problems, create problems similiar, and write a paper based on the data and use this as a study guide. I calculated these problems myself but wanted to get them done as to double check them since a lot of different parts of a large assignment is based off of the first st
Why are some markets monopolistic? Are there natural monopolies?
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. After I have calculated the price of apples demand, how do I address a response?
Industry supply and demand are given by: Qd = 1000 - 2P; Qs = 3P What is the equilibrium price and quantity? At a price of $100, will there be a shortage or a surplus and how large will it be? At a price of $300, will there be a shortage or a surplus, and how large will it be?
Acme Coffee Bean Company sells coffee beans to both retail grocery chains and commercial users (e.g., coffee shops, vending companies, etc.). The demand function for each of these markets is: Retail grocery chains: P1 = 180 - 8Q1 Commercial users: P2 = 100 - 4Q2 where P1 and P2 are the prices charged and Q1 and Q2 are the