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Demand & Supply

ebay Supply and Demand

Go to the internet auction site eBay at and select the category Jewelry and Watches, followed by Loose Diamonds and Gemstones, and then Diamonds, Natural. How many natural diamonds are for sale at the moment? Note the wide array of sizes and prices of the diamonds. In what sense is there competition among the seller

Demand supply and equilibrium wage

Part A: The government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues, such as obesity and heart disease. Answer the following: in 600-800 words - What type of tax is this? Explain. - What happens to the supply of cookbooks? - What happens to the equilibrium price?

Prices on eBay

Describe what would happen if an outside agency determined the prices eBay could charge.

Maximizing Revenue and Determining Demand

Shoes For Less (SFL) hires you to determine the demand for their shoes, and you estimate this to be: Qd = 32,000 - 1200P + 600Pc + 1.2Y + 0.06A where the independent variables are respectively: price of SFL's shoes, price of competitors' shoes, per capita income (in $) and advertising (in $) by SFL. You observe that compet

New Demand Curve for Chevrolet

Starting with the estimated demand function for Chevrolet given in problem 2, assume that the average value of the independent variables changes to N=225 million, I= 12,000, PF=10,000, Pg=100 cents, A=250,000, and p1=0 (ie. The incentives are phased out). 3(a). Find the equation of the new demand curve for Chevrolets. 3(b).

Managerial Economics: Demand, Supply, and Equilibrium

Answer all questions, a through f. On questions c, d, e and f show your math. Suppose that the demand and supply functions for good X are as follows: QD = 75 + (.004)*M - 4*P QS = -43 - (.4)*(PI) + 3*P a. Is this good a normal good or an inferior good? How do we know? b. Is the sign correct on the coefficient in f

Equilibrium price and quantity of trucks

According to an article in the Wall street Journal, during 2006, the demand for full-size pickup trucks declined as a result of rising gas prices and a decline in housing construction (construction firms are an important part of the market for full-size pickup trucks). At the same time, Toyota began production of trucks at a new

Airline Price Discrimination

Airlines practice price discrimination by charging leisure travelers and business travelers different prices. Different customers pay varying prices for essentially the same coach seat because some passengers qualify for discounts and others do not. Since the discounts are substantial in many cases, the customers who qualify f

Oligopolies and Economics

These are multiple choice for pretest and study purposes .Please provide feedback and the reason for the choice. Thank you

Xerox vs. Ricoh copy machine lease

1. The Beaverdam Run Condominium Association has an office Xerox machine. Six months ago, the Association signed a one-year lease for the machine. Six monthly payments remain on the lease at $100 per month. The Association also pays a fee of $0.07 per copy and makes 2,000 copies per month. The lease terms state that cancella

Market Equilibrium Process

Understanding how market equilibrium is maintained is essential for business managers. As a manager, it is important to understand how economic principles, and specifically supply and demand, are a part of your everyday business decisions. Explain the market equilibrating process and compare the demand for food with the de

Factors of Production, Land and Labour

Countries Home and Abroad have two factors of production, land and labour, with which they produce two goods, wheat and wine. Technology is the same in the two countries, characterized by constant returns to scale and strictly increasing production functions with decreasing marginal products. Wheat is land-intensive, wine is lab

Analyze the given demand function.

You are given the following equation for the market demand function for product X: QD=500-20Px+0.002I-10Py Where QD=quantity of X demanded per year Px=price per unit of product X I=average income per year Py=price per unit of product Y a) Is X a superior (normal), neutral or inferior good? Why? b) Is Y a substitute f

Demand Curve: Haircuts

The demand curve for haircuts at Terry Bernard's Hair Design is P = 20 - 0.2Q, where Q is the number of cuts per week. a. Should Terry raise the price of haircuts above its current $15 if he wants to increase revenue? Why or why not? b. Use calculus to find the number of haircuts that maximizes total revenue. What price would

Increase or Decrease in Demand

Determine if, for the good marked with ALL CAP lettering, if there is an increase or decrease in demand. A. A new fashion trend dictates the wearing of KILTS. B. The price of APPLES. C. The price of Pepsi, a substitute for COKE, increases. D. The price of DOG FOOD increases. E. The consumers start liking MINIVANS all of a s

Managerial Economics - Supply and Demand Curves

Book: Managerial Economics, 12th Edition ISBN-10: 1-133-46058-5, ISBN-13: 978-1-133-46058-9 1. Suppose you have 12 years of experience as a computer programmer, and you leave your current job and start a new software company in Lexington. You used to earn $80,000 per year in your previous job, but you now pay yourself just

Demand and Supply - Fixed Cost

Complete the following table. What is the value of fixed cost? Output Total Cost Marginal Cost Average Cost 0 $100 1 $110 2 $130 3 $165 4 $220 5 $300 On a graph, depict marginal cost and average cost using the data from above. Indicate minimum average cost on the graph.

Price Elasticity of Demand: Graph and Analysis

The following is a demand schedule for shoes: Price: $100 ; $80 ; $60 ; $40 ; $20 Quantity: 10 ; 14 ; 18 ; 22 ; 26 A) Illustrate the demand curve. B) How much will consumers spend on shoes at a price of $80? C) As price drops from $100 to $80, is the demand elastic or inelastic? Show yo

Calculate the equilibrium parameters in the given cases.

Price per gallon $2.00 2.25 2.50 2.75 3.00 3.25 3.50 Quantity demanded 26 25 24 23 22 21 20 Quantity supplied 16 20 24 28 32 36 40 (a) What is the equilibrium? (b) If supply at every price is reduced by 10 gallons, what will the new equilibrium price be? (

Price Elasticity of Demand Exercise

Help me with the following elasticity exercise, using the table attached for the data. Determine: I. The price-elasticity of demand coefficient. Ii. The name as elastic, inelastic, unitary, perfectly elastic or perfectly inelastic. Iii. The type of good as luxury or necessity. Iv. The change in total revenue or total ex

Reversed Causality - Examining the Facts

A hypothetical study examines the operations of a couple of hundreds medical clinics, with the data for the amount of expenses for new medical equipment relative to the total expenses in a particular year(s), and the amount of revenue per physician in subsequent years. The study finds that the more a clinic spends for new equi


A television show called 'Extreme Couponning' features people who go to extreme lengths to collect and use discount coupons. Though the program focuses on extreme cases, couponning is a popular strategy used by businesses to generate sales. What key economic concepts underlie the use of discount coupons by businesses?

Price Elasticity for Wal-Mart's Decision

This was a post that you created earlier. I related it to Walmart. My followup question is: What does this decision by Wal-mart tell you about the price elasticity of the demand curve that it faces? There are many ways that organizations can use to increase revenue. One of the ways is to increase the price of an item. This

Managed Care Types of Incentives

- What are some the types of incentives for providers for efficiency in the delivery of healthcare services. Explain who bears the financial risk, the provider, the patient, or the managed care organization? - Explain the types of incentives for providers for efficiency in the delivery of healthcare services.

Capital Structure

Suppose that Ms. Macbeth's investment bankers have informed her that since the new issue of debt is risky, debt-holders will demand a return of 12.5% which is 2.5% above the risk free rate of interest. What are r(A) and r(E)? Suppose that the beta of the unleveraged stock was .6. What will B(A), B(E), and B(D) be after the ch

Demand elasticity for CO2 abatement and life cycle analysis

A government wants to institute a hybrid car rebate of $3000 per car for hybrids that average $25,000 in price and get 45 mpg. Consumers are currently purchasing 750,000 of these hybrids annually. The demand elasticity of hybrid cars is 1.2. How much does it cost the government for every metric ton of carbon not emitted into the