Suppose that you are the vice president of operations of a manufacturing firm that sells an industrial lubricant. Further suppose that your economist gives you the following supply and demand equations: Supply equation: QS = 0.5P-20 Demand equation: P = 100 a ) Calculate the equilibrium price and quantity that characterizes this good b) Graphically show the market equilibrium price and quantity you found in part a). Please label this point "A". c) Suppose that the local
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- Supply and Demand-End of Chapter Problem The demand for organic carrots is given by the following equation: 08 = 75 - SPo + Pc + 21 where Po is the price of organic carrots, Pe is the price of conventional carrots, and / is the average consumer income. Notice how this isn't a standard demand curve that just relates the quantity of organic carrots demandod to the price of organic carrots. This demand function also describes how other factors affect demand-namely, the price of another good (conventional carrots) and income. a. Calculate the inverse demand curve for organic carrots when Pc 5 and I 10, then drag the endpoints of the line labeled (a.) on the graph to plot this curve %3D %3DSolve subpart 4. Suppose the supply and demand curves for a particular product are given by Qs=-20+2p Qd=100-2p Where Qs and Qd are quantities in units and P is the price per unit. Graph the supply and demand curves. Be sure to calculate the P and Q intercepts for demand and the P intercept for supply. Calculate and illustrate the equilibrium price and quantity. Calculate both the demand and supply elasticity around the equilibrium point. Suppose the government implements a price ceiling of $20/unit in this market. Is the price ceiling binding on the market? What are the quantities demanded and supplied at the price ceiling? How many units are exchanged at this price? Given the effects of the policy, is there a potential for illegal trade? Briefly explain your answers where necessary. What is the value of the economic surplus that would be generated in the original equilibrium? Is there a deadweight loss due to the price ceiling policy, and if so, what is its value? Briefly explain.Question 1 Suppose Ms. Zeenia demands 150 units of ice cream at price 50, if the price tends to increase to 60 she reduced her demand by 30 units while a further increase in the price by 10 rupees led to the reduction in the quantity demanded to 90 units ceteris paribus. Given the information above drive the demand function. Now suppose the price of milk has increased, illustrates graphically if there would be any change in the demand function elucidated in part a. Also, explain why or why not? Question 2 Keeping the present rate of inflation (increase in the general price level) in mind, consumers living in Karachi are anticipating that the price of tomatoes will go up just like it did last year in November. In your opinion explain if there would be any impact on…
- The Unique Gifts catalog lists a "super loud and vibrating alarm clock." Their records indicate the following information on the relation of monthly supply and demand quantities to the price of the clock. Demand Supply Price 166 131 $31 146 181 $43 Use this information to find the following. (a) points on the demand linear equation (x, p) (smaller x-value) (х, р) %3 (larger x-value) points on the supply linear equation (х, р) (smaller x-value) (x, p) = ( ) (larger x-value) (b) the demand equation p = (c) the supply equation p (d) the equilibrium quantity and price Equilibrium occurs when the price of the clock is $ and the quantity isIn the following question(s) you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X. Refer to the above. An increase in the price of a product that is a close substitute for X will: Group of answer choices a. decrease D, increase P, and decrease Q. b. increase D, increase P, and decrease Q. c. increase D, increase P, and increase Q. d. increase D, decrease P, and increase Q.According to economic theory, the demand x for a quantity in a free market decreases as the price p increases (see the figure). Suppose that the number x of DVD players people are willing dx (A) Find 9,000 to buy per week from a retail chain at a price of $p is given by x = 10 sp<70. 0.3p + 1' dx Answer parts (A), (B), and (C). dp 4500- (B) Find the demand and the instantaneous rate of change of demand with respect to price when the price is $30. Write a brief interpretation of these results. The demand is x = when the price is $30. 2250- 9,000 The instantaneous rate of change of demand with respect to price is when the price is X = 0.3p + 1 $30. Write a brief interpretation of these results. p. 0- 40 80 At a price level of $30, the demand is DVD players per week and demand is Price (dollars) V at the rate of (C) Use the results from part (B) to estimate the demand if the price is increased to $31. Demand .....
- Demand and supply in a market are described by the equation: Qd=66-3P Qs=-4+2P Solvealgebraically to find equilibrium price and quantity.In a certain market for sobolo,when the price of the drink was Ghc 3 the quantity demanded was 12bottles.On another day,when the price per bottle was 5 cedis,the quantity demanded was 6 bottles.Use the information to write the equation for demand.Now,what will be quantity demanded if price per bottle was 6cedis.If we restrict price to the same demand curve,what will happen if price is less than Ghc 2.PLEASE ANSWER c The Market for Chicken Meat in Davao Citya. Fill in the missing algebraic signs ( + or -) of the demand and supply equations for chicken meat belowaccording to the hypothesized direction of relationships. where:Q = quantity of chicken meat in kilograms, per dayPC = price of chicken meat (in pesos per kilogram)I = income of average consumer (in pesos per day)PB=price of beef (in pesos per kilogram)W=wage rate paid in the poultry business (in pesos per day)PF= price of mixed feeds (in pesos per kilogram) Demand: QD = 20 ___ 1.5PC____0.8 I ____ 0.6 PBSupply: QS = - 20 ___ 4.5PC____0.5 W ____ 3 PFb. Suppose the other variable affecting the demand for and supply of chicken meat have the followingvalues: I = P300/day ; PB = P100/kg; W = P100/day; PF = P10/kgi. Derive the simple demand and supply equations where Q is a function of P.ii. Solve for the equilibrium price and quantity in the market.iii. Suppose the government imposes a price ceiling of P50/kg:1. What happens…
- Price 12 10 8 6 4 2 Demand 10 20 30 40 50 60 Quantity Demanded (Q) & Quantity Supplied (Q.) Refer to the graph. Using Qd for quantity demanded and Pfor price, which of the following equations correctly states the demand for this product? 0The market supply and demand equations for a given product are given by the expressions QD=200-50p QS=-40+30P a. Find the equilibrium price and Quantity b. Suppose that there is an increase in demand and supply to QD=300-50P QS=-20+30P Respectively, find the new equilibrium point. In addition to this, show the impact of change in demand and supply using axing graph.State whether the following statements are TRUE or FALSE and explain your answer (d) Income elasticity of demand (E,) is a measure of the degree of responsiveness of changes in the quantity demanded of goods to a change in its price. (e) If the value of income elasticity of demand for goods is negative(E, <0), the quantity demanded will decrease when income increases. Therefore, the goods is an essential goods. (f)Microeconomics is the branch of economics that analyses the behaviour of how national economies work. (g) Economics is the study of how evenly goods and services are distributed within society (h) Inflationary gap is defined as a situation when real aggregated supply is less that the aggregate supply for employment. (i) When the supply is elastic, the supply curve has a steep slope. Recovery phase of the business cycle is when real GDP reaches its minimum after rising.