Share
Explore BrainMass

Supply and Demand

Elasticity

Research the elasticity of beef and eggs in regards to price changes. How do supply, demand, and price controls interact to affect equilibrium price of eggs? Why do customers have a more elastic buying response to beef than to eggs?

marginal benefit curves

When negative (or positive) externalities exist economists say that the market has failed to produce the right amount of the good at the right price. What do economist mean by this? How do they determine what the right amount of the good is?

Monopolist graph (supply and demand)

The following cost and demand curves represent a monopolist (view attached graph to answer) How much profit will the monopolist earn at the profit maximizing level of output? What is the firm's Total Revenue at the profit maximizing level of output? What is the Total Cost at the profit maximizing level of output? Wha

Supply and demand

1. Industry supply and demand are given by QD = 1000 - 2P and QS = 3P. What is the equilibrium price and quantity? At a price of $100.00, what will the quantity be? 2. The demand equation for the Widget Company has been estimated to be : Qd= 20,000 + 10 i - 50P + 20 PC Q=monthly # of widgets sold, I= average mon

Equilibrium in a monopolistically competitive industry

Carefully explain what will happen as we move from the short run to a long run equilibrium in a monopolistically competitive industry if firms are making a positive profit in the short run. Your explanation should clearly state what will happen to the demand curve facing an individual firm and the reason why this happens.

Perfectly Competitive Market

Suppose that, in a perfectly competitive market at the profit maximizing quantity, the market price is greater than average total cost. Carefully explain what will happen to the number of firms, the market supply and the price of the good as we move from the short run to the long run.

4 Question about Aggregate Demand Curve

1. What is the effect of an increase in the quantity of money? What is the difference between real variables and nominal variables? Are these variables affected by the quantity of money? If so, how? 2. What is the difference between the real exchange rate and the nominal exchange rate? If the nominal exchange rate goes from

Market Supply.

I do not know how to work the answers for part b or c of the attached file.

Simple Economic Questions

Provide enough help to create at least a 250 word document to define Oligopoly & Monopolistic Competition. Please respond with a doc attachment- See attached.

Macroeconomics

PROBLEM I ABC Corp is a small Canadian firm that sells staples in Canada, which is a very competitive market. The staples can be classified as a standard commodity, with stores viewing the staples as identical to those supplied by other firms. Recent news has indicated that 1) due to the growing Canadian economy, the over

Demand and supply: decriminalizing illegal drugs

The consequences of decriminalizing illegal drugs have long been debated. Some claim that legalization will lower the price of these drugs and reduce related crime. Others claim that more people will use these drugs. Suppose that some of these drugs are legalized so that anyone may sell and use them. Now consider the two cla

Thinking like a Macro-Economist

Thinking like a Macro-Economist: John Maynard Keynes and Milton Friedman Macro-economics is perhaps the most divisive area of economics. Macro-economists divide themselves into different schools of thought. Two of the biggest camps are the Keynesians and the Monetarists. Keynesians and post-Keynesians follow the theories o

Cost functions of a perfectly competitve firm

Consider the following cost functions of a perfectly competitive firm? Marginal Cost= MC = 6q + 20 Average Total coat = ATC = 20 +3q + 10/q Suppose the price is P=$28 A) What is the profit maximizing output for Q B) Calculate the firms profit or loss, should firm shut down if loss? C) Calc producer surplus, ho

Monopoly theory

- Since a monopoly is the only source of supply, consumers are entirely at its mercy. There is no limit to the price the monopoly can charge?. Evaluate this statement. - A monopoly´s profits are not necessarily bad, but its reduction in output is. Evaluate this statement.

Externalties

1. Externalities are third party consequence of some other action. They can be positive or negative externalities and they impose a benefit or cost to a third party. Identify a positive and a negative externality. Discuss the benefits and costs associated with each type of externality. What happens to the Supply and/or Demand cu

Long-run equilibrium

If a representative firm with long-run total cost given by TC = 50 + 2q + 2q2 operates in a competitive industry where the market demand is given by QD = 1,500 - 40P, in the long-run equilibrium there will how many firms?

Profit and supply

Question 1 If the long run market supply is perfectly elastic a fall in demand would cause the final equilibrium to be at: a) The same price but at lower output b) A lower price and a lower output c) A lower price but at the same output d) The same price and the same output Question 2 True or False A perfectly co

Perfectly Competitive Markets for Noodles

The excel is attached, please advise how to go about solving Market demand schedule for noodles Price Q Demanded 5.4 50200 6.4 45200 7.4 40000 8.4 35000 9.4 30000 10.4 24800 11.4 19800 12.4 14800 THe market isperfectly cmpetitive wih constant input prices and each firm has the same cost str

Aggregate Supply and Demand

Consider the following simplified AE function: AE = 350+0.8Y+0.1(M/P) where AE is desired aggregate expenditure, Y is real GDP, M is private sector's nominal wealth, and P is the price level. Suppose that M is constant and equal to 6000. a) Explain why the expression for AE above makes sense. Why do M and P enter the

Aggregate Demand and Supply

This is a challenging question and involves algebraically solving the system of two equations given by AD abd AS curves. The equations for the curves are given by the following: AD: YAD = 710-30P + 5G AS: YAS = 10+5P-2Poil where Y is real GDP, P is the price level, G is the level of government purchases and Poil is the

Economics

The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Suppose a manufacturer estimates its marginal cost at $1.00 per pack,

Stabilizing financial systems

Details: You have been tasked to brief the firm's finance team on an aspect of international finance and then to lead a discussion with the team. This briefing is particularly important because of the global financial crisis that began in 2007. The briefing is needed to provide more foundation for the finance team because

Micoreconomics

The president of your company, Mr. daily, has asked you to prepare a report explaining the various forms of market structure. He explains to you that the report will be handed out to the staff prior to the staff meeting next week and that it should outline the various forms of market structure. At the same time, the report shoul

Supply and Demand

There is a shortage of college basketball and football tickets for some games, and a surplus occurs for other games. Why do shortages and surpluses exist for different games?

Supply and demand, price ceiling, economic/non-pecuniary price

Suppose the market for natural gas can be described by: Demand: Q(D)= 80 - 5P Supply: Q(S)= 20 - 15P Where P is the price ($) of natural gas per million BTU, Q(D) is the quantity demanded and Q(S) is the quantity supplied of million BTUs of natural gas per day. a) what are the equilibrium price P* and equilibrium Q*?

Supply and Demand

Need help with this Exercise 4. Suppose the government imposed a minimum price of $7 in the schedule of exercise 3. What would occur? Illustrate. 5. In exercise 3, indicate what the price would have to be to represent an effective price ceiling. Point out the surplus or shortage that results. Illustrate a price floor

Monopolistically competitive firm

Attached are problems 1, 2, & 3 which I am in need of help understanding and working. Also, I have attached additional information which may be needed. I would greatly appreciate whatever assistance you can supply.