Share
Explore BrainMass

Demand & Supply

Evaluate the Success of the Cash for Clunkers Car Program

Evaluate the success of the Cash for Clunkers car program by the Government. Did the program succeed in establishing lasting renewed demand for new cars? Did the Obama Administration overstep its bounds by creating artificial demand for new cars?

1- Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive service market in New York are: Supply: Qs = 2P - 20 Demand: Qd = 80 - 2P Where Qs and Qd are measured in thousands of hours of floor reconditioning per month, and P is the price per hour. A. Algebraically determine the market equilibrium price and equilibrium output combination. B. Use a graph to confirm your answer using Excel. Helpful Directions for drawing S and D graphs: To draw the supply and demand graphs in Excel, I suggest you create a table with 3 columns in Excel by following these basic steps: I-Label the columns in your table as: Price, Qd, Qs For the price column: II-Fill in the price column with prices 10, 15, 20, 25, 30, 35, 40 III-Calculate Qd column by substituting the prices in Qd equation given above. IV-Calculate Qs column by substituting the prices in Qs equation given above. V- Highlight the table including the labels and click on the Chart Wizard in Excel to draw the graph. 2. The figure below shows a firm in a perfectly competitive market: a. Find the price below which the firm will go out of business. b. What is the firmâ??s long run supply curve?

1- Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive service market in New York are: Supply: Qs = 2P

Monopoly and Monopolistic Competition

Supply and demand conditions in this competitive service market in New York are: QS = 2P â?" 20 (Supply) QD = 80 - 2P (Demand) Where Q is thousands of hours of floor reconditioning per month, and P is the price per hour. A. Algebraically determine t

Mergers among brokerage houses during the dot-com era

During the dot-com era, mergers among some brokerage houses resulted in the acquiring firm paying a premium on the order of $100 for each of the acquired firmâ??s customers. Is there a business rationale for such a strategy? Do you think these circumstances are met in the brokerage business? Explain

Professional Sport Players - Supply, Demand & Equilibrium

Professional Sport players generally are paid much more than farmers, factory workers, engineers, and teachers. The markets for the professional sports players, farmers, factory workers, engineers and teachers are generally competitive markets. Even among professional sport players, the salaries for players in some sport

Individual Demand Curve

I've already done most of this problem and need help with one small part. Here's the problem: Elizabeth makes $200 a week and spends her entire income on shoes and jeans. She also insists that for every pair of jeans she buys, she must also buy a pair of shoes (without the shoes the jeans are worthless). Therefore she bu

Demand function

Given the following demand function: Q = 2.0 P-1.33 Y2.0 A0.50 Where Q = quantity demanded (thousands of units) P = price ($/unit) Y = disposable income per capita ($ thousand) A = advertising expenditures ($ thousand) Determine the following when P = $2/unit, Y = $8 (i.e., $8000), and A = $25 (i.e., $25,000) (a) Pri

Point price elasticity of demand

The British Automobile Company is introducing a brand new model called the "London Special." Using the latest forecasting techniques, BAC economists have developed the following demand function for the "London Special": QD = 1,200,000 - 40P What is the point price elasticity of demand at prices of: (a) $8,000

Relationship between Advertising and Demand

Consider two firms X and Y that produce identically tasting cold drinks. In order to increase the demand for its cold drink, firm X increase its advertisement outlay. However the advertising doesn't increase its demand in the long run. Explain why this must be the case.

Monopolistic Competitive Firm

Rerfer to: the graph . The short-run equilibrium price for the monopolistically competitive firm represented in the above $.60. $.85. $.95. $1.00. Question 2 Refer to the graph depicting a monopolistically competitive firm. According to the graph, economic profit is currently: impossible to determine. positive.

Finding Equilibrium Price and Output

Question: Consider a competitive market served by many domestic and foreign firms. The domestic demand for these firm's product is Qd=500-1.5P. The supply function of the domestic firms is Qsd=50+.5P, while that of the foreign firms is Qsf=250. A) Determine the equilibrium price and quantity under free trade. B) Determine th

Demand Curve and Equilibrium Price

If the demand curve for wheat in the Untied States is P=12.4-Qd where P is the farm price of wheat (in dollars per bushel) and Qd is the quantity of wheat demanded ( in billions of bushels), and the supply curve for wheat in the United States is P= -2.6 + 2Qs where Qs is the quantity of wheat supplied ( in billions of bushels),

Equilibrium Price and Market Demand of Frozen Yogurt

The Market Demand for Joy's Frozen Yogurt is given as: Qd=-100P+1.5Phd-5Psd+20A+15Pop Where Qd= Annual demand for frozen yogurt Phd= Price of hot dogs Psd= Price of soft drinks A= Advertising expenditures Pop= Percentage of the population Considering the demand equation of QD=-100p+700,and assuming that the

Demand Equation for Joe's Frozen Yoghurt

The Market Demand for Joy's Frozen Yogurt is given as: Qd=-100P+1.5Phd-5Psd+20A+15Pop Where Qd= Annual demand for frozen yogurt Phd= Price of hot dogs Psd= Price of soft drinks A= Advertising expenditures Pop= Percentage of the population If Phd = 100, Psd = 75, A = 20, Pop = 35 How do you come up with the dem

Price elasticity of demand

In an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paper's publisher rejected the idea, sa

Supply and demand

Video Concepts, Inc. (VCD) manufactures a line of DVD records (DVDs) that are distributed to large retailers. The line consists of three models of DVDs. The following data are available regarding the models: DVD Selling Price Variable Cost Demand/Year Model Per unit Per unit (units) Model LX1

Demand

Suppose that during a given year: (1) the price of TV sets increases by 4 percent in Japan, (2) the dollar depreciates by 5 percent with respect to the yen (the Japanese currency), (3) consumer incomes in the United States increase by 3 percent, (4) the price elasticity of demand for imported TV sets in the United States is 1.5,

Maximizing revenue

A private-garage owner is currently charging his customers $1.75 per hour. But he is considering changing the way he prices parkers in an attempt to increase profit. He has identified two distinct market segments for his business: short-term parkers and all-day parkers with respective demand curves (functions) of QS = 600 -

Predicted yearly annual sales / price elasticity

Please assist with parts: a,b,c,d,e Thank you!!! *Use this information to answer the questions that follow. Market researchers at Chrysler estimated the demand for their new Chrysler Crossfire sports cars as follows: QC = 1,050,000 - 95PC + 14.25M + 60PBMW + 25PP Where QC is the quantity of Chrysler Crossfires

Demand Curves

1. Assume that, for a particular demand curve, when price rises from $50 to $60, total revenue falls from $8,750 to $7800. a. Based on this information, what is the quantity demanded at each price. b. Without calculating the coefficient of elasticity, is demand over this range elastic or inelastic?

I just need #4 answered.

Using the following schedule, define the equilibrium price and quantity. Describe the situation at a price of $10. What will occur? Describe the situation at a price of $2. What will occur? Price Quantity Demanded Quantity Supplied $1 500 100 $2 400 120 $3 350 150 $4 320 200 $5 300 30

Cigarette Smoking and Taxes

Cigarette Smoking and Taxes (adapted from lesson in economics.about.com) Cigarette taxes are a hot topic in Economics for many reasons. Cigarettes are considered goods with a negative externality. This implies that some external parties are negatively affected by the private transaction of others. For instance, cigarettes produ

Is it Elastic, Inelastic, or Unitary Elastic?

Suppose the price of apples rises from $3 a pound to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to