1. Suppose the demand curve for a good is given by the equation P = 200 - .5Q, and the supply curve is given by the equation P = 50 + .25Q, where P = price and Q = quantity. A. What are the equilibrium price and quantity? B. Suppose a sales tax of $9 / unit is levied. Find the new equation for demand, the new equilibrium Q
Chapter 5 DEMAND ANALYSIS Mark Hirschey Managerial Economics 11th edition. Q5.5 "When I go to the grocery store, I find cents-off coupons totally annoying. Why can't they just cut the price and do away with the clutter?" Discuss this statement and explain why coupon promotions are an effective means of promotion for groce
I need help with this study question. Professor Kenneth Warner of the University of Michigan has estimated that a 10 percent increase in the price of cigarettes results in a 4 percent decline in the quantity of cigarettes consumed. For teenagers, he estimated that a 10 percent price increase results in a 14 percent decline in
1. Consider the following table for the demand and supply of a certain product: Price Quantity Demanded Quantity Supplied $1000 0 500 $750 125 375 $500 250 250 $250 375 125 What is the equilibrium price and quantity? P = $250, Q = 125 P = $500, Q = 250 P = $750, Q = 125 P = $1000,
1. You are given the following information on two securities, the market portfolio, and the risk free rate: (See attached file for full problem description with chart) For parts a, b, and c, use the above Table. a. Draw the Security Market Line. b. What are the betas of the two securities? c. Plot the two securities o
The AFL-CIO has been a proponent of increasing the minimum wage. Please help me to understand why.
Let's say that I've been hired as an economic consultant to evaluate the nation's airport security systems (metal detectors and machines that allow security people to see what's inside carry-on luggage). Suppose these security systems add $5 to the typical airplane ticket and require 10 minutes of extra time for each passenger.
Name the three tools of the Fed to affect the money supply, and explain how the Fed would use each tool to increase the money supply.
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 following question asked to give some reasons why savings accounts should be regarded as money. Why or why should they not. I need help to make this argument I need help to decide to make an argument for which side is more convincing.
The following question I know is not true however I am not sure if I have the entire answer. the question was "Banks do not create money. After all, they can onlylend out money they receive from depositors."
The question was to assume that the market for electric toasters is competitive and that the quantity supplied per year depends as folows on the price of a toaster: Price of a Toaster Number of Toasters Supplied (millions) 12
Imagine a Congressman is proposing to improve the welfare of every citizen in the U.S. by paying a base income of $1,200 a month to everyone regardless of income,a ssets, age, etc. The argument of the congressman is that by doing so people could work in jobs "they really like" instead of working just to earn an income. What do
Which of the following two studies is correct, or can they both be correct at the same time? An influential study of the cigarette industry notes that "In 1918, for example, Lucky Strike [cigarettes] were sold for a short time at a higher retail price than Camel or Chesterfield and rapidly lost half its business" (Tennant 196
A firm faces a kinked demand curve which is relatively flat above Po and relatively steep below Po. a. Describe the pricing behavior of the firm's rivals. In particular, how do they react to changes in price? b. Assuming the segments of the demand curve are linear, draw and describe the Marginal Revenue Curve. c. Why is th
With the merger of SCB and ATT, what, if any, cost advantages might be created? What actions, if any, do you think the government will take? are there specific facts to support your answers What will be the welfare effects, if any of the merger?
# 90. Demand for pools. Tropical Pools sells an above-groung model for p dollars each. The monthly revenue for the sale of this model is a function of the price, given by R= -0.08p^2 + 300p. Revenue is the product of the price p and the demand (quantity sold) a) factor out the price on the right-hand side of the for
Please step me through the calculations & logic behind this situation: You are the CEO of PC Warehouse, a firm which manufactures customized computers to meet the specifications of their clients. Nearly 85% of your customers are businessmen. Your firm is not the only business that makes the custom computers, but competes wi
The Demand for Jet Air Travel Services and Hotels (X) is estimated to be: Q (x) = 22,000 - 2.5 (Px) + 4 (Py) - 1 (M) + 1.5(Ax) where Ax represents the the amount of advertising spent on X and other variables have their usual interpretations. Suppose the price of good X is $450.00, good Y sells for $40.00, the company util
As the manager of a local hotel chain, you have hired an econometrician to estimate the demand of one of your Hotels (H). The Estimation has resulted in the following demand function: Q (H) = 2,000 - (PH) - 1.5 (PC) - 2.25P ( P SE) + 0.8 (P OH)+ .01 (M) Where the following to solve: P= Price (H) is Hotels, (PH) is the pr
I need to define the cost function of a firm given the production function, rent and labor costs. Also about the equation that would minimize costs and the respective ratio.
1. In 1999, the bidding for a human kidney offered on the Internet auction site eBay hit $5.7 million before the company put a stop to it citing a federal law that makes it illegal to sell one's own organs. Using a supply and demand graph, explain this bidding phenomenon given that the federal law mandates a price of zero for
Supply and Demand, Elasticity 1) In the U.S. it is illegal to buy or sell heroin, yet there is still a market. Suppose the government's main goal is to decrease the amount of heroin consumed and proposes three solutions. For each of these, show what would happen to the market price and quantity for heroin. Briefly discuss you
Suppose that it is possible to provide internet backbone capacity at a constant marginal capital investment of $5 per megabit per second (mb/s). There are no marginal costs. There are two time periods during the day (for simplicity each will be 12 hours): day and night. During the peak period (daytime) of 250 business days p
Given the following equations for the market for hamburgers, construct a table of numbers and solve for the equilibrium point by inspection: (Supply) y = x + 1 (Demand) y = -2x + 10
Choose 3 Micro concepts that are important or interesting, describe them briefly, explain how all three are inter-related, and what relevance they would have to one's life.
Attendance at Walt Disney dropped by 8% after prices for ticekts rose by 5%. What is the PE of demand for these tickets and could the PE be over-estimated by these figures? Please name other factors that could cause a decline in tickets purchased other than PE.
There are indeed several reasons why economic profits are short-lived: new-entrants with the same strategy, competitive reaction by producers of differentiated products, and close enough substitutes, etc. So that I can remember something that is conceptually simple, I would like to see a description in graphical terms of the mec
I need help with the following problem. I have a) Q= 5.625, b) Q= 8.18 but I am not sure about c . Please solve for a-d ans show your work so that I can compare with what I can up with. Problem: The the external MC of pollution is MCexternal = 5Q and the internal marginal cost is MCinternal = 10Q. Further, assume t
I am looking to sell some T-shirts at my university and want to figure out the economics of the market. The total demand for these t-shirts comes from two groups: group A and group B. The demand curves for these two groups are given by the following equations: Students; Qa = 120 − 10Pa Faculty: Qb = 48 − 2Pb