8. Short-run and long-run effects of a shift in demandSuppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 125 millionpounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could increase your expectedlifespan by 3 years.The publication is expected to cause consumers to demandShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication.PRICE (Dollars per pound)1098762100SupplyIn the long run, some firms will respond byDemand25 50 75 100 125 150 175 200 225 250QUANTITY (Millions of pounds)seitan at every price. In the short run, firms will respond by中喜中重DemandSupply?until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long-run equilibrium after firms and consumers finish adjusting to the news.PRICE (Dollars per pound)10run.987632100 25■ISupplyDemand+50 75 100 125 150 175 200 225 250QUANTITY (Millions of pounds)中囂中書DemandSupply?The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isin the long

Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 125 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could increase your expected lifespan by 3 years. The publication is expected to cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. PRICE (Dollars per pound) 10 9 8 2 1 0 0 25 Supply In the long run, some firms will respond by Demand 50 75 100 125 150 175 200 225 250 QUANTITY (Millions of pounds) seitan at every price. In the short run, firms will respond by Demand Supply ? until

Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 125 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could increase your expected lifespan by 3 years. The publication is expected to cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. PRICE (Dollars per pound) 10 9 8 2 1 0 0 25 Supply In the long run, some firms will respond by Demand 50 75 100 125 150 175 200 225 250 QUANTITY (Millions of pounds) seitan at every price. In the short run, firms will respond by Demand Supply ? until

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 6.1IP

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The Gulf Sea Turtle Conservation Group (GSTCG), a non–profit group of volunteers working to collect data on nesting sea turtles and to promote sea turtle conservation, is considering creating a video to educate people about sea turtle conservation. The cost of duplicating a video on a DVD and mailing the DVD is $5.56. In a GSTCG member meeting, the video plan was discussed. The first two columns of Table 1 below shows the expected demand for the DVD at different suggested donation levels, and they can act as a single-price monopolist if they choose to. The receipts will be used to fund GSTCG supplies for their data collection and conservation work. At the end of each sea turtle nesting season, any excess funds are donated by the GSTCG to a local non-profit sea turtle research and rehabilitation facility. Complete Table 1 by computing the Total Revenue, Marginal Revenue, Total Cost, and Profit columns, each rounded to two decimal places. The cost of duplicating a video on a DVD and…
Greentech- a high technological pharmaceutical company, has developed a clot-dissolving drug called TPA that will halt a heart attack in progress. TPA saves life, minimizes hospital stays, and reduces damage of the heart itself. It is priced at $ 2,200 per dose. What pricing approach does Greentech appear to be using? Is demand for this drug is likely to be elastic with price? Note: Please answer the question with points and exampleUrgent needed within 30min
Genovia has experienced exceptional growth in recent years. Its GDP per capita (orIncome) has increased from around $30,000 to $50,000 in last 5 years. Over theperiod quantity demanded of personal cars has increased from 450,000 units per yearto 600,000 units. Quantity demanded of public transport, however, has declined from10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell whichproduct is a normal good and which one is inferior.
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Q39) The price elasticity of demand for nursery products is -10. The advertising elasticity of demand is 0.4. The advertising expense to sales revenue will be ____ of sales. A. 0.4 percentB. 0.25 percentC. 40 percentD. 4 percent
6) Suppose you are in charge of sales at Novartis (the largest pharmaceutical compa-ny) and your company sells a drug that causes bald men to grow hair. You calculate that price elasticity of demand for this drug at the current market price is -1.4. What type of price elasticity of demand does Novartis drug have? a. Elastic b. Inelastic c. Perfectly elastic d. Perfectly inelastic e. Unit elastic
Suppose that you own a local chain of 10 grocery stores that sell oranges. (Assume that the grocery stores are all the same in terms of customer composition, products sold, etc.) You are interested in determining whether or not you are maximizing revenue on the oranges you sell. Devise a plan to calculate the arc elasticity of demand for the oranges. What data would you need? How could you get that data? How do you use the raw data to tell you if you’re maximizing revenue?
Suppose before Corona virus Tamanna Pharmacy in Bashundhara used to sell 50 masks per day at a price of Tk15 per mask. After Corona virus their sell has increase to 200 per day at a price of Tk25 per mask. A. Draw the demand and supply curves of the mask B. If possible, calculate the mid-point demand and supply elasticities of the mask C. Justify your reason if elasticity value calculations are not possible.
Question a) Demand for Magnum Ice Cream is given by an equation as Q = 70 – 10P + 4 Px + 50 I Where, Q = Quantity of Magnum demanded, P = Price of Magnum Ice Cream, Px = Price of Walls Ice Cream, I = Per Capita Income Assume P = Rs 100, Px = Rs 120 and I = Rs 25 (Rs in thousands). Calculate Price Elasticity of Demand Cross Price Elasticity of Demand Income Elasticity of Demand and How the elasticity does estimates help in managerial decision making? b) A city government is considering renting space in an all‑day parking garage for its 100 employees. The government estimates these employees' demand function for parking spaces is 150 ‑ 50P (P ≥ $1), where P is the per-day price of parking, and the city will pass on the cost. If the city needs not charge each of its employees the same price for a parking space, what is the maximum amount the city could pay for the 100 spaces, and what would be the average cost per space? Assume the employees’ union…
If Andrew would like to buy slippers, he has to check the prices and the number of quantities that will fit to his financial capabilities. If at a price of $220 he can buy 3 slippers, however if he will be given a discount of $50, he would like to buy 5 slippers. Show the value of E using the Price elasticity formula and identify the kinds of E. Let’s see of his capabilities be translated based on his income of $8,000 and an increase of 20% with the same number of slippers. What do you think of his EY and what kind of goods he is capable of buying? On the other hand if changes in price would be interpreted by looking at its cross relationship with same price original and a 35% increase in price due to inflation, but still Andrew, considered the same number of quantities since its Christmas season.
If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5percent, this market is operating in which section of its downward-sloping straight-linedemand curve? Group of answer choices This market shows elastic demand which could occur at any point along the demand curve. the section below the point of unit elasticity the point equal to unit elasticity the section above the point of unit elasticity
23. The smaller the coefficient of price elasticity of demand for a product, the: A. smaller the resulting price change for an increase in supply. B. more rapid the rate at which the marginal utility of that product diminishes. C. less competitive will be the industry supplying that product. D. smaller the resulting quantity change for a decrease in supply.