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Demand & Supply

Demand curve for haircuts

The demand curve for haircuts at Terry Bernard's Hair Design is P= 20-0.20Q where Q is the number of haircuts per week and P is the price of a haircut. Terry is considering raising her price above the current price of \$15. terry is unwilling to raise the price if the price hike will cause revenues to fall. a. Should Terry rais

Initial Equilibrium - Supply and Demand

Assume your product is Wendy's hamburgers. First "draw" the demand and suppy curve and see how the equilibrium price and quantity is determeined. Second, change something on the demand or supply side, i.e increase or decrease one of the determinants of demand ( or supply). Write a short description of what you changed and

Important Information About Supply and Demand Changes

You know from data collected on the widget market that market demand has recently increased and market supply has recently decreased. As manager of the facility, what decisions should you make regarding production levels and pricing for your widget facility? Remember that supply and demand are about the market supply and mark

Need help with equilibrium quantity

Suppose you are hired to manage a small manufacturing facility that produces Widgets. (a.) You know from data collected on the Widget Market that market demand has recently increased and market supply has recently decreased. As manager of the facility, what decisions should you make regarding production levels and pricing f

Health care demand with t-statistics

Please answer in as much detail as possible especially where t-stats are concerned. t-statistics are in parentheses. A= -207.78 - 0.924P +0.031Y +4.194SNGL + 4.456LFP + 18.287W +1.207CATH (1.41) (3.22) (3.31) (1.74) (2.57) (1.74) (1.50) +43.78 (2.12)

Interpreting elasticity coefficients

Price elasticity of demand and Income elasticity of demand (1) (2) (3) (4) Electricity Price Natural gas Price Oil Price Income Electricity -0.6 1.6 1

Price discrimination conditions

Which of the following is NOT a condition for price discrimination? Different groups of consumers must be charged differing prices for the same product. The firm's demand curve must be downward sloping. At least two groups of consumers exist for the product. The producer must be a price taker.

Cross price elasticity of demand

What is cross-price elasticity? Explain why the results of calculating cross-price elasticity can be useful in determining product relationships. In your explanation, contrast the different numerical values of cross-price elasticity and what each value indicates.

Optimal profit maximizing strategy for Hewlett Packard

I need assistance with the following: Determine the optimal profit maximizing strategy for Hewlett Packard within its given market type Explain specifically how this strategy may be used to maximize profits within the given market type

1. If nothing else changes, what happens to the price and quantity if the supply curve shifts to the right? 2. Suppose a decrease in consumers' income causes a decrease in the demand for chicken and an increase in the demand for potatoes. Which good is inferior and which is normal? How will the equilibrium price and quantity change for each good? 3. In the United States, corn is often used as an ingredient in animal feed for livestock. Why does an increase in the use of corn to make ethanol, an additive that is used in gasoline, raise the price of meat? Use supply and demand curves for the corn market and the meat market to explain your answer. 4. What is the law of supply? Give two examples of how you have observed the law of supply at work.

1. If nothing else changes, what happens to the price and quantity if the supply curve shifts to the right? 2. Suppose a decrease in consumers' income causes a decrease in the demand for chicken and an increase in the demand for potatoes. Which good is inferior and which is normal? How will the equilibrium price and

Inelastic demand

Changes in price do not always impact demand to the same degree, and in some cases change in price impact demand very little. These goods are said to have a relatively inelastic demand. What would make a good have a level of demand that is relatively inelastic, and what are some examples?

Please answer with short answers. 3-6 (Key Questions) What effect will each of the following have on the supply of automobile tires? a. A technological advance in the methods of producing tires. b. A decline in the number of firms in the tire industry. c. An increase in the price of rubber used in the production of tires.

U.S. demand for British pounds increases

If the U.S. demand for British pounds increases, then: the dollar price of a British pound will increase. the dollar price of a British pound will decrease. the exchange rate between dollars and pounds will be out of equilibrium. the pound will fall in value against the dollar.

Does the scenario displays the law of demand?

John is willing to purchase 3 computers when each computer costs \$300. If the price is \$150 for each computer, John is willing to purchase 5 computers. This scenario displays the law of demand. Do you agree or disagree?

EQUILIBRIUM GRAPH QUANTITY

Identify the equilibrium quantity for the attached figure 270 250 320 350 10

EQUILIBRIUM GRAPH/PRICE

Identify the equilibrium price for the figure above. 14 12 10 8 6

EQUILIBRIUM GRAPH/DEMAND CURVE

Several factors can shift the demand curve. Given an increase in the price of other goods, click the new point of equilibrium on the graph below.

EQUILIBRIUM GRAPH/SUPPLY CURVE

Several factors can shift the supply curve. Given a decrease in the price of resources used in the production process, click the new point of equilibrium on the graph below.

Assessing Price Elasticity Problems

Problem 1: should a company raise its price when it faces and elastic demand? Explain. Problem 2: Given a price elasticity, what price change would be needed to increase quantity demanded by a certain amount?

law of supply

Sunrise Surf Shop is willing to produce 30 surfboards in a month if it can sell each board for \$300. If it can receive \$500 for each board, the shop is willing to produce 70 surfboards. This is an example of the law of supply. Do you agree or Disagree?

Calculations of elasticity

If I were a painter and the price of my paint increased per galloon from \$3.00 per galoon to \$3.50 a galoon this causes my paint to drop from 35 galoons a month to 20 galoons a month. compute the price elasticity of demand for paint and show calculations., decide whether the demand is elastic, unitary elastic or inelastic, then

Environmental and Natural Resources Economics

Consider a manufactured good whose production process generates pollution. The annual demand for the good is given by Qd = 100 â?" P. The annual market supply is given by Qs = P-10. In both equations, P is the price in dollars per unit. For every unit of output produced, the industry emits one unit of pollution. The marginal

Demand Elasticity

In 2002 the U.S Postal Services increased first-class postage rates from 34 cents to 37 cents. The service had had been losing money. One of the reasons increased competition from companies such as United Parcel Service and Federal Express. Another reason is the use of faxes and e-mail, as well as electronic bill payment. With t

Suppose an airline flying on Charlotte - Chicago route

Suppose an airline flying on Charlotte - Chicago route has estimated the demand curves for three different types of customers: business (no advance purchase), leisure (7 day advance purchase), and discount (14 day advanced purchase) travellers. They are: business: P = 600 -Q and MR = 600 - 2Q; Leisure : P = 500 - 2Q and MR = 500

Elasticity of Demand and Changes in Prices

You decided to open a restaurant, named FunMeal. FunMeal is a fast food restaurant with a very limited menu. It serves only a steak sandwich on a whole-wheat roll plus a salad with any beverage of the customer's choice. Normally the sandwich, salad and beverage meal sells for \$12.00 and the average number of meals sold per mon

Equilibrium output multiplier

Suppose the economy starts at equilibrium and the mpc=.8. What would be the effect of a \$500 increase in taxes (once all the rounds of the multiplier process are complete) in relation to equilibrium output?

Linear Demand Estimation

Describe your question and receive a step-by-step response ASAP. Results for Linear Demand Curve Estimation. Kenny Mcormick manages a 100-unit apartment building and knows from experience that all units willbe occupied if rent is \$900 per month. Mcormick also knows that, on average, one additional unit will go unoccupied for