In Brisbane there is a small population of musicians who play the harp. The quantity demanded for a specific student harp, used by music students, when priced at $11,500 is 20 harps. However, the quantity demanded for the same student harp when priced at $17,500 is only 8 harps in Brisbane. 1. All individual student harp players will always have the same willingness to pay for a harp. 2. If the harp differs in price and quantity demanded (ceteris paribus), then a demand schedule can be constructed. 3. A new music university opens in Brisbane where students enrol to study and learn the harp. These additional new players need to be included in the market demand for student harps. Which of the above statements are true: Only 1 is true. Only 2 is true. Both 1 and 2 are true. Both 2 and 3 are true. All three are true.
Q: Suppose that your tuition to attend college is $10,000 per year and you spend $4,000 per year on…
A: The opportunity cost is the potential loss that is sacrificed when one option is selected over…
Q: The South African Rand flactuates widly on a daily, weekly, monthly basis. Identify all the…
A: Exchange rates are a barometer of a country's economic health and its standing in the international…
Q: Suppose the inverse market demand is given by P-500-5Q. If the incumbent continues to produce 25…
A: A residual demand curve is present for each individual firm. This is the market need that other…
Q: Your client has a $200,000 Homeowners Comprehensive policy. Due to a fire which causes substantial…
A: The Homeowners Comprehensive policy typically includes a provision for Additional Living Expenses…
Q: If the purpose of a tax is to decrease the amount of a harmful activity, then the tax would be most…
A: Supply and demand both are affected by the imposition of tax. The imposition of tax changes the…
Q: Given a closed economy where there is no public sector. Production in the economy can be described…
A: A production function is a mathematical relationship that shows the maximum amount of output that…
Q: Which of the following would most likely lead to demand-pull inflation? O.a. an increase in menu…
A: Demand-pull inflation occurs when there is excessive demand for goods and services than the…
Q: Using demand and supply analysis, graphically illustrate how the equilibrium price and quantity…
A: Demand :Demand is when a consumer has the desire to buy something at the price that he is ready to…
Q: Exercise 1 Oscar, a woodworker, builds coffee tables using both labor (L) and tools (capital, or K).…
A: The production function shows the relationship with the input used and output produced.In short run,…
Q: here p is the price (in dollars) of a chair. (a) According to the model, at what price will…
A: Demand schedule represents negative relationship between the price and the quantity demand. It…
Q: Refer to the figure at right. Government policy that noved the economy from A to B would be…
A: The Phillips curve shows the negative relationship between inflation rate and unemployment rate.…
Q: Figure 3. The graph depicts the market for fertilizer. Price 500 450- 400 350- 300 250 200- g 150-…
A: There are various products that are sold in high quantity but yield a huge amount of negative…
Q: While working with the sales manager of your firm, you have estimated the following model of sales…
A: As the given model shows the relationship between the monthly income and monthly sales volume, where…
Q: 4. Suppose output for a simple production process is given by Q = K + L, where K denotes capital,…
A: The given production function is the linear or production function of perfect substitute goods where…
Q: (Figure: Pollution and Efficiency) Use Figure: Pollution and Efficiency. In this market, whose…
A: The cost to society of manufacturing one extra unit of an item or service is known as the MSC. MSC…
Q: F The equilibrium level of real GDP is Real GDP Consumption (C) $6,200 (Y) $8,000 9,000 10,000…
A: Aggregate expenditure is the sum of consumption, investment, government expenditure and net exports…
Q: Which of the following are types of regional trade agreements? Select all that apply: • economic…
A: The regional trade agreements can be defined as a treaty that is signed by two or more nations to…
Q: At the economy's natural rate of unemployment. Multiple Choice the economy achieves its potential…
A: The natural rate of unemployment, often referred to as the non-accelerating inflation rate of…
Q: At the market equilibrium, price is equal to $18; 70 O $14; 50 $14; 70 O $18; 50 O $12; 50 , and…
A: Market equilibrium:Market equilibrium is the point at which the quantity of a good or service…
Q: Concept: Technological Progress/LRAS Suppose an economy experiences technological progress and this…
A: Technological progress in economy means that technological advancement in production process will…
Q: In a perfectly competitive market there is a cookie shop that sells 1,200 cookies daily. Each cookie…
A: Perfect competition is a market structure characterized by:Many buyers and sellers.Homogeneous or…
Q: find the price elasticity of demand for this restaurant’s beef burger; and b) find the…
A: Elasticity of demand measures how much the quantity demanded changes when the price of the good…
Q: What economic theories are most useful when applied to the healthcare industry and why?
A: Healthcare economics theory examines the allocation of resources and decisions-making in the…
Q: Price discrimination is charging consumers different prices for the same good based on individual…
A: The cost per unit refers to the total cost on the production for a single unit of an item or…
Q: Consider the production function F (K, N) = KN. Which statement is correct? O The production…
A: The production function shows the relationship with the input used and output produced.There is…
Q: How does the graph you've just explored show the equivalence of a tariff and an import quota? The…
A: A tariff is essentially a fees that is placed on the price of the good.A quota is a limit to the…
Q: i. Find the condition under which the merger is profitable for firms 1 and 2 jointly (in terms of…
A: Oligopoly is an economic market structure characterized by a small number of large firms or…
Q: An upstream manufacturer U supplies to two downstream retailers, D1 and D2. One unit of input is…
A: There is a manufacturer UManufacturer U sell goods to 2 retailers D1 & D2Manufacturer…
Q: What is the meaning of decolonization of social work?
A: Decolonization in social work refers to a process of critically examining and dismantling the…
Q: 7. An externality occurs when the benefits or costs of an economic activity are external and not…
A: The externality is defined as the cost or benefit that is unrelated to the third party involved. It…
Q: (Market Equilibrium) In the graph below, which price will create the greatest shortage? Price P2 PO…
A: When demand for a good at the market price exceeds supply, shortage conditions arise.
Q: Complete the following equation for the current account deficit: Current Account Deficit = ▼ ) + (…
A: Since you have posted multiple questions, according to our guidelines, only the first question is…
Q: a. Find on the internet some academic study or media article (newspaper or blog etc.) that relates…
A: Fiscal Stimulus: Government policies involving increased government spending and tax cuts aimed at…
Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $110…
A: Perfect competition is a market form with a high number of buyers and a high number of sellers.…
Q: Q1. Horizontal Mergers with synergies The market inverse demand is given by P(Q) = 170 - Q.…
A: Oligopoly is an economic market structure characterized by a small number of large firms or…
Q: 3. The effect of negative externalities on the optimal quantity of consumption Consider the market…
A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…
Q: Refer to the Figure under perfect competition. If P represents the market price for a price-taking…
A: A perfectly competitive firm:A perfectly competitive firm is a firm operating in a perfectly…
Q: What area on the graph represents the total amount of DEADWEIGHT LOSS that results from the…
A: A deadweight loss, often referred to as deadweight loss of taxation or simply deadweight, is an…
Q: Texas is known for producing rockets and computers. Using the PPF, graph and explain the impact of…
A: A production possibility frontier represents the maximum output combination of two goods (say…
Q: Problem 3. Calculate the annual worth in years 1 through 10 of the following series of incomes and…
A: Annual worth is a financial measure that calculates the yearly expense of an investment or project.…
Q: If real GDP grows at an average rate of 3% per year, it will double in approximately____years.…
A:
Q: When the money market is drawn with the value of money on the vertical axis, in which situation does…
A: In the context of the money market, the position of the value of money on the vertical axis is a…
Q: A currency trader observes the following quotes in the spot market: 1 U.S. dollar 1 British pound 1…
A: An exchange rate can be defined as a rate at which one currency can be exchanged for another…
Q: Ethan has $17 per week in his food budget. He splits his choices between pizzas and hot dogs. Each…
A: Marginal utility is the extra satisfaction you get from consuming one more unit of a specific good.…
Q: Consider the production function of widget: Q = 28K0.8 L0.4, where Q is units of output per month. K…
A: The production function shows the relationship with the input used and output produced.There is…
Q: The following graph characterizes a firm in a monopolistically competitive market. 32 24 21628 ATC…
A: In monopolistic competition, There exists a large number of buyers and sellers. The firm will…
Q: Papayas Price (2015, base Quantity (2015, year) base year) $12 Watermelon $24 3.74% 1.95% 2.27%…
A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…
Q: hen quantity demanded decreases in response to a change in price for the good: the demand curve…
A: The law of demand states inverse relationship between price and quantity demanded. When price rises,…
Q: (6)-Suppose that we have cash flows as follows: End Of Year 1 3 4 1,000 Receipts($) 3,000 (a)- Draw…
A: The cash flows are given in the table below:End of…
Q: Perfectly competitive firms are small relative to the size of the market. All of the above are…
A: Perfect competition is a type of market where there are very large number of firms,which have no…
Step by step
Solved in 3 steps
- The quantity of a product demanded by consumers is a function of its price. The quantity of one product demanded may also depend on the price of other products. For example, if the only chocolate shop in town (a monopoly) sells milk and dark chocolates, the price it sets for each affects the demand of the other. The quantities demanded, q₁ and q2, of two products depend on their prices, p₁ and P₂, as follows: If one manufacturer sells both products, how should the prices be set to generate the maximum possible revenue? What is that maximum possible revenue? Enter the exact answers. P₁ = i P2 = The maximum revenue is i 91235-4p₁ - 2P₂ 92 = 220-3p₁ - 4P2. iBoth the supply and the demand for crude oil seem to be price inelastic. It implies that changes in the price of crude oil have a relatively small effect on the quantity demanded or supplied. On the demand side, people as well as businesses tend to continue using oil products even after its price increases, as there are often few substitutes in the short run. That is why there is still growing demand for crude oil. On the supply side, it is difficult as well as expensive for the producers to quickly increase or stop oil production as a response to price changes. Therefore, even after a price rise, the supply is not enough to meet demand. It implies that any given change in supply or demand is likely to have a comparatively large effect on the equilibrium price than on the quantity of crude oil (the percentage change in the price will be higher than the percentage change in quantity). Draw a graph to show the information aboveAt Edmonds Community College freshman need to take a 100 level Math and English plus optional Philosophy course.In any quarter the college needs to make available 8 less English sections than Math sections.In any quarter student demand for the optional Philosophy course is half as many sections as English sections.Available classrooms limit the total sections of all three courses to 78Given these constraints how many sections of each course should the college make available each quarter to meet demand? Math sections English sections Philosophy sections
- Suppose that you are a staff economist with an economic consulting firm. The operator of a local harbour has commissioned your firm to do a market analysis of the demand for berths (parking spaces) for boats. Your firm finds that the price elasticity of demand for berths is –0.8. If the price of a berth in the area decreases by 6%, how will the quantity of berths that people demand change? The number of berths demanded will: Increase by 0.8% Decrease by 7.5% Increase by 6% Increase by 4.8%Three consumers have personal tastes for drinks at the Crunkleton. The Crunkleton Cocktail Bar charges a membership fee to enter the bar and the drinks are $15 a piece (MC=15). The three types of consumers are undergrads, MBA students, and alumni. Undergrads have a demand of P=16-QU , MBA students have a demand of P= 22-0.2Qm , and alumni have a demand of P=22-0.5QA . Assuming there are equal number of undergrads, MBAs, and alumni, and costs are only variable so C=15Q. d) What is the profit if the bar charges a fee that encourages only MBA to go to the bar? Which fee will the bar choose to maximize profits (MBA, undergrads, or alumni)?Suppose that you are in charge of a toll bridge over the Mississippi River. The demand for bridge crossing Q is given by the following: 2P = 20 - Q a) How many people would cross the bridge if there were no toll? (YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT) b) The toll bridge operator is considering setting up a price of $5.00. At that price, how many people will cross the bridge? (YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT) c) How many people would cross the bridge if the toll is set at $10.00? (YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT)
- Energy markets, such as the market for natural gas and electricity, have been known to be characterized by inelastic demand. However, recent research discussed in the August 25, 2022 issue of The Economist, indicates that while the responsiveness of quantity demanded in response to price changes indeed is “inelastic” (i.e., the absolute value of price elasticity of demand is still less than 1), the percentage change in quantity demanded in response to a change in price is much larger than earlier research indicated. Answer these narrative questions. No graphs are needed. What does “inelastic demand” formally mean? In addressing this part of the question, please make sure to explain the concept of the price elasticity of demand using a simple formula and by providing a short narrative. Policymakers are encouraging people to conserve energy in response to the growing energy crisis. Discuss the positives (pros) and negatives (cons) of providing subsidies to consumers in this situation…Suppose the market for cars has two segments, businesses and home users. The demand curve for cars by businesses is p = 120 - 40qb where q is the quantity of cars demanded by businesses with the price is p. The demand curve for cars by home users is p = 40 - 10gh where q is the quantity of cars demanded by home users when the price is p. Both businesses and home users will never demand negative amounts of cars, so for sufficiently high prices, the demand will be 0. Which of the following figures represent the market demand curve for cars? a. b. C. p 120 110 P 120 110 р 120 110 100 90 100 90 100 90 80 80 80 70 70 70 60 60 60 50 50 50 40 40 40 30 30 30 20 20 20 10 10 10 1 2 3 4 5 6 7 8 9 10 11 12 Q 1 2 3 4 5 6 7 8 9 10 11 12 Q d. p ea p e. 120 120 110 100 90 80 70 60 50 40 30 20 10 10 b C d e 1 2 345 6 7 8 9 10 11 12 Q 110 100 90 80 70 60 50 40 30 20 10 1 2 3 4 5 6 7 8 9 10 11 12 Q 1 2 3 4 5 6 7 8 9 10 11 12 QSuppose that a person regards ham and cheese as pure complements—he or she will always use one slice of ham in combination with one slice of cheese to make a ham and cheese sandwich. Suppose also that ham and cheese are the only goods that this person buys, and that bread is free.6.1. If the price of ham is equal to the price of cheese, show that the own-price elasticity of demand for ham is –0.5 and that the cross-price elasticity ofdemand for ham with respect to the price of cheese is also –0.5.6.2. Explain why the results from (6.1) reflect only income effects, not substitution effects. What are the compensated price elasticities in this problem?6.3. Use the results from (6.2) to show how your answers to (6.1) would change if a slice of ham cost twice the price of a slice of cheese.
- Why might a movie theater charge a lower admission price for the first show on weekday afternoons than they do for a weeknight or weekend show?a) Demand is lower for the weekday afternoon showing of the movie than for the weeknight or weekend showing.b) The supply of seats in the theater is greater on a weekday afternoon and the demand to see the movie is lower for the weekday afternoon showing.c) Theaters like to show with the lower prices that they want every income group to attend their movies.d) The supply of seats in the theater is greater on a weekday afternoon.If more and more demanded at the same price it is known as extension of demand. True or falseHome work CH 6.34 In 2005 Uber and Lyft had not entered the market yet and the New York City taxi cab commission could set prices and restrict entry into the market for taxi cab rides. New York City taxi cabs provided a quantity of 100 rides in 2005. For simplicity, suppose every taxi cab ride was identical. Each ride lasted 10 miles and the price of each ride was $50. At this price, the price elasticity of demand was -5.0. Taxi drivers in this market faced two costs. First was the cost of purchasing a yellow Ford Crown Vic taxi cab. Second was the cost of gasoline, which was $2 per gallon at the time. The Ford Crown Vic could travel 20 miles for each gallon of gasoline. If the New York City taxi cab commission's objective were to maximize economic profits, what price should they charge for each ride? (Hint, first find the demand curve.)