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Demand & Supply

Supply and Demand: Variety and Price of Products

The bank is looking for new clients in high-growth industries. Until a few years ago, if a consumer wished to purchase music, he or she would have to buy a recording of it at a store, but there is only a limited supply of compact discs, tapes, or records at any given store. Because of advancements in technology, consumers can no

Demand and Supply

From Figure 8-4, determine the effect of a 33 percent import tariff on commodity X. The tariff-inclusive price will be $3(1+.33) = $4. What are the impacts of tariff on domestic consumption, domestic production, imports, and government's tariff revenue? Please show the numbers, for example, the domestic consumption will decr

Demand and Supply

Starting with the market demand and supply functions, QD = 10,000 - 1,000P QS = -2,000 + 1,000P Determine algebraically the new equilibrium price and quantity if (a) the demand function changes to QD' = 12,000 - 1,000P or to QD" = 8,000 - 1,000P, or (b) the market supply function changes to QS* = -4,000 + 1,000P or to QS*

new equilibrium price

Assume that S and D are neither perfectly elastic nor perfectly inelastic. Assume that market for Jelly is initially in equilibrium. Let's call this initial equilibrium price and quantity as P1 and Q1 respectively. a)Explain what will happen to demand for Jelly if the price of peanut butter ( a complimentary good) has droppe

Determine the Market equilibrium price/output Combination

Can someone help me with this problem? I have attempted to answer Question A and would like for someone to tell me if I have answered it correctly. Part B of the question is asking for a graph and I can not get this to graph correctly. Part C and D is aking questions related to the graph. If someone can show me or assist me

Demand for video rental, calculate equilibrium

Suppose that the demand for video rentals per week is given by Qd^videos = 18 - 4P^videos, and the supply of videos by your local video store per week is Qs^videos = 6 + 2P^videos. a) Calculate the equilibrium price and quantity in this market. b) If the price = $3, then what is happening in this market? Briefly expla

Problems in microeconomics

I need detailed answers for these problems. They are core problems to prepare for the exam. (Gwartney, p. 78, #2) What is being held constant when a demand curve for a specific product (shoes or apples, for example) is constructed? Explain why the demand curve for a product slopes downward to the right. (We gave two reasons

Solving total revenue cost function and linear equation

1. Assume that the cost function of a firm is given by the relationship... 2. Decker is a maker of small kitchen appliances. Its economists estimated the following demand for toaster oven using data gathered over 16 quarters from 10 major retail distributors of its product. This type of sample which involves the use of cross-se

Economics hwk

With Jan 1st, 2000 being the new millennium, many predicted worldwide shortages of champagne, lobster and other New Year delicacies. New England and Canadian wholesalers began stockpiling lobsters it the first half of 1999. Boston dealer James hook ordered 675,000 kilograms which is 50% more than he did last year. The anticipate

Equilibrium price & quantity and total consumer surplus

Consider three supply & demand scenarios in this question. In each case, we have a perfectly competitive market and the market demand curve is given by P = $100 - Q where P is the market price and Q is the market quantity. In the first scenario, the market supply curve is given by P = $50. In the second, the market supply is giv

Computation of Market Equilibrium

Given the demand and supply functions below, Qd=500-2p Qs=-100+2P Where Qd is the quantity demanded, Qs is the quantity supplied, P is the Price. A- Solve for market equilibrium mathematically. B- Describe verbally, the effects on equilibrium quantity and equilibrium price of: 1. Shifts in supply and demand functions

Changes in price and effect on supply and demand

a. Suppose that someone told you that an increase in the price of DVD players caused a decrease in the demand for DVDs. Is this what you would predict? Why or why not? b. Suppose that someone told you that an increase in the price of gasoline caused a decrease in the demand for public transportation. Is this what you woul

Break Even Analysis

Nature's Green Inc., a manufacturer of alfalfa tablets sold in health - food stores, currently operates just outside of Meno,California. Nature's Green is considering two alternative proposals for expansion, because it has run out of acreage to grow its organically-farmed alfalfa. It has found the following sites where farmers

Economics: Important Managerial Tasks

Question 1: Why is it important for managers to understand both short run and long run supply and demand? Please provide one hypothetical or real life example that illustrates your response. Question 2: Under what circumstances would it be appropriate to resort to plant or company closings or layoffs? What is a good guide

Describe future Market Conditions

Future Market Conditions describe future market conditions that your selected company/industry will face. Explain your conclusions. Address the following topics in your paper (you need to address all items from a to e plus at least one from f to i): a. Market structure b. Impact of new companies entering the market c. Curr

There is a major technological advance in the process for producing bicycles.

There is a major technological advance in the process for producing bicycles. a. What happens to bicycle supply? b. What happens to bicycle demand? Peanut butter and jelly are complements in consumption. The price of peanut butter rises. a. What happens to the demand for jelly? b. What happens to the demand for pean

IS-LM diagrams

_______ Suppose that the Fed pursues a policy of adjusting reserves to keep the interest rate fixed no matter what shocks hit the economy. With the help of IS-LM diagrams, explain how the Fed would react: a. If foreigners buy fewer goods and services from the United States because of recessions in their countries. b.

Market Supply and Demand

The milk industry has a number of interesting aspects. Provide economic explanations for the following: a. Fluid milk is 87% water. It can be dried and reconstituted so that it is almost indistinguishable from fresh milk. What is a likely reason that such reconstituted milk is not produced? b. The US has regional milk

Negative Letters

I need help with the following problem: Please read the Stoval Home Products case at Apply as many concepts as possible from the readings. After you've written the letter, describe how you used the ideas from the readings. The paper should be betwee

Results of a bumper crop

A bumper crop of farm products causes: a) only a slight decline in the price of farm products because the demand for farm products is income inelastic. b) a large decline in the price of farm products because the demand for farm products is price inelastic. c) only a slight decline in the price of farm products becaus

Impact of Deposits Money Supply

Mr. Jones has decided to deposit $5,000 that he hid in a shoebox into his bank. What is the impact of his deposit to the money supply? (Assume the required reserve ratio is 5% and use simple money multiplier) From this example, can you elaborate the impact of your deposits into the banks?

Economics - Equilibrium Price/Output Combination

Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office 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: QS = 2P -

Economics multiple choice

1. As the price of a resource (e.g., labor) decreases, a) demand for that resource increases b) the quantity demanded of that resource decreases c) the supply of that resource increases d) producers are more willing and able to hire that resource 2. One determinant of the derived demand for a re

Equilibrium price

1. Suppose the government wishes to spur the production of peanuts for their potential usage in making biodiesel in order to reduce our dependence on foreign oil. Further suppose that the market demand and supply for soybean oil are given by QD = 100 - P and QS = 50 + .3P, where Q = barrels of peanut oil, and P = price per

Economics - Demand Analysis

The monthly wholesale demand for beef in the Honolulu market are shown below. Quantity of Fresh Beef Price of Fresh Beef in Sold in 1000 lbs Dols. per Pound 10 10 10 9 10

Derive the equation for the demand curve

Air California is a regional airline providing service between Los Angeles, California and Las Vegas Nevada. An analysis of the monthly demand for service has revealed the following demand relation: Q = 45,000 - 250P - 300PC + 250BAI + 10,000S Where Q is quantity measured by the number of passengers per month, P is the pr

Quantitative Demand Analysis

You are a manager at the Chevrolet division of General Motors. If your marketing department estimates that the semiannual demand for the Chevy Tahoe is Q = 100,000 - 1.25P, what price should you charge in order to maximize revenues from sales of the Tahoe? Please explain!