Annual demand and supply for a company is given by QD = 5,000 + 0.5 I + 0.2 A - 100P, and QS = -5,000 + 100P Where Q is the quantity per yea, 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. Given the demand curve in part (a) what i
For each of the following sets of supply and demand curves, calculate equilibrium price and quantity. a. QD = 4000 - 4P; QS = 4P b. QD = 1000 - P; QS = 100 +P c. QD = 5000 - 10P; QS = -1000 + 5P
Superior Metals Company has seen its sales volume decline over the last few years as the result of rising foreign imports. In order to increase sales (and hopefully, profits), the firm is considering a price reduction on luranium - a metal that it produces and sells. The firm currently sells 60,000 pounds of luranium a year at a
Consider an economy that consists of two regions-the North and the South. The elasticity of labor demand in each region is -0.5. The economy-wide labor supply is perfectly inelastic. The labor market is initially in equilibrium, with 600,000 employed in the North and 400,000 in the South at the wage of $15/hour. Suddenly, 20,00
12. Orley has a wine cellar in which he keeps choice wines from around the world. What does Orely expect to happen to the prices of the wines he keeps in his cellar? Explain your answer. How does Orley decide which wine to drink and when to drink it?
4. Larry makes gourmet ice cream in small batches. He employs workers who can produce the following quantities in a day: (see chart in attached file) Larry can sell ice cream for $25 a batch, and the wage rate of his workers is $100 a day. a. Calculate the marginal product of the workers and draw the marginal product cu
Make a powerpoint presentation that demonstrates the CLOSED ECONOMY MODEL. The slides build the model up one step at a time and explain how the real interest rate keeps the goods market in equilibrium. (Y = C + I(r) + G)
Identify an industry. What factors have affected supply, demand, and prices, in that industry over the past twelve months?
What assumptions about a rival's response to price changes underlie the kinked-demand curve for ologopolists? What are the shortcomings of the kinked-demand model?
There is an attached chart. BTW the problem is talking about an amusement park, just so you know what I mean when I say "park" or "rides". The probability column wasn't needed then (I asked the professor) but it may be in one of these: 1. Under a rule of strict liability, how many inspections are likely to result? Under w
1. Is is possible to maximize sales revenue or market share and profit at the same time? Why? 2. Are all demain curves downward sloping ? Why? What is the meaning for firms of demand curves that do or do not slope downward? 3. If the firm reduces the price for its product, will it decrease its revenue? Why? 4. Are al
How would you explain the differences in wages in the east and west coast for the same type of jobs?
1) Price discrimination is often defended on the basis of equity (Charge less for the poor than the rich!). Is this the only rationale for price discrimination? 2) If a market price is determined by a dominant price leader, what happens to the price (gets higher or lower) if the number of the followers increase? (First revi
Please see attachments. I have to analyze these for a job-related assignment and am under a time crunch. If I can just get an idea of the graphs and so forth I can build my report better. The attachment named "Problems" are what needs to be analyzed The PP is just directions and the Excel sheet is the generic tool
The demand and cost estimates Q = 90 - 6.5P and TC = 150 + 3.5Q Unfortunately what we didn't realize at the time that our fixed cost were underestimated by at least 30 percent. this means that we'll have to adjust upward our price by at least 30 percent to cover the added fixed cost. In any case theer is no way to in the
A consultant has provided you with his best estimates of market demand and supply for herbal tea as: Qd= 50- P Qs= 0.5-10 a. Determine the competitive equilibrium price and quantity b. Determine the quantity demanded, quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in the market.
You have been retained as an analyst to evaluate a proposal by your city's privately owned water company to increase its rates by 100 percent. The company has argued that at the present rate level, the firm is earning only a 2-percent rate of return on invested equity capital. The company believes a 16-percent rate of return is
Chapter 10 Problem 2 In 2001, the box industry was perfectly competitive. The lowest point on the long-run averge cost cureve of each of the identical box producers was #4, and this minimum point occured at an output of 1,000 boxes per month. The market demand curve for boxes was : Qd = 140,000 - 10,000P Where P is the
Consider the following multiplicative demand function where QD = quantity demanded, P = selling price, and Y = disposable income: QD = 1.6 P-1.5 Y.2 The exponent of Y (i.e., .2) indicates that (all other things being held constant): a for a one percent increase in disposable income, quantity demanded would increase
An income elasticity (Ey) of 2.0 indicates that for a _____________ increase in income, ____________ will increase by __________________. a one percent; quantity supplied; two units b one unit; quantity supplied; two units c one percent; quantity demanded; two percent d one unit; quantity demanded; two un
The demand function for bicycles in Holland has been estimated to be: Q = 2,000 + 15Y - 5.5P Where Y is income in thousands of euros, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euros and Y = 15 (000) euros, determine the following: a. Price elasticity of demand b.
1. (4 pts.) Joe faced the following options: (a) pay $10,000 tuition to attend classes at Econ Tech; (b) work as a fry cook for $10,000; or (c) work as a waiter at an elite restaurant and earn $20,000. What is Joe's opportunity cost of attending classes at Econ Tech? 2. (8 pts.) Sun City, Arizona, a retirement community that
Suppose that the demand for steel in Japan is given by the equation Qs(demand)= 1200-4Ps+Pa+Pt, where Qs is the quantity of steel purchased (millions of tons per year), Ps is the price of steel (yen per ton), Pa is the price of aluminum (yen per ton). The supply curve for steel is given by Qs(supply)=4Ps. Similarly, the deman
Consider the following linear demand function where QD = quantity demanded, P = selling price, and Y = disposable income: Q = -36 -2.1P + .24Y a for a one percent increase in price, quantity demanded would decline by 2.1 percent b for a one unit increase in price, quantity demanded would decline by 2.1 units
Which of the following statements concerning the price elasticity of demand is (are) true? a The greater the number of substitute goods, the more price elastic the demand for the product. b The demand for durable goods tends to be more price elastic than the demand for nondurables. c The demand for relatively l
1. What is a competitive market? Briefly describe the types of markets other than perfectly competitive markets. 5. Popeye's income declines and as a result he buys more spinach. Is spinach an inferior or a normal good? What happens to Popeye demand curve for spinach? 3. If the elasticity is greater then 1, is demand elast
What products or services do you expect to be price elastic, price inelastic, or too close to call in the short run?
Stayner Catering is considering setting up a temporary division to handle demand created by a special tourist promotion being made by City of Toronto during the coming year. They will invest in tables, serving equipment and trucks for a one-year period. Labour is employed on a monthly basis. Warehouse space is rented monthly, an
(See attached file for full problem description) --- 5. Given the demand and supply functions below Demand: P = -0.0056Q + 12 Supply: P = 0.0033Q + 8 (Assume that P represents the price per unit, and Q represents the quantity of units demanded at that price.) (a) Use algebraic methods to find the Equi
Why effective leaders must possess masterful skills in negotiating the change process. Note: This is a leadership class