**Price and Demand Analysis**An economist is interested in how the price of a certain item affects its monthly sales. At a price of $p, a quantity, q, of the item is sold each month. Suppose that we write q = D(p). Using complete and descriptive sentences, explain the meaning of each of the following statements:**a) D(500) = 2,000**This statement means that when the price of the item is set at $500, the quantity of the item sold each month is 2,000 units. Essentially, it tells us the number of units demanded by consumers per month when the item's price is $500.**b) D'(500) = -25**This statement indicates that at the price point of $500, the rate of change of the quantity demanded with respect to price is -25. In other words, for every dollar increase in the price of the item, the quantity demanded decreases by 25 units. This describes the sensitivity of demand to changes in price at the $500 price level.

a) Suppose q=D(p), p is the price and q is the item sold, the statement D(500) = 2,000 indicating…

An economist is interested in how the price of a certain item affects its monthly sales. At a price of $p, a quantity, q, of the item is sold each month. Suppose that we write q=D(p). Using complete and descriptive sentences, explain the meaning of each of the following statements: a) D(500) = 2,000. b) D'(500) =-25.

An economist is interested in how the price of a certain item affects its monthly sales. At a price of $p, a quantity, q, of the item is sold each month. Suppose that we write q=D(p). Using complete and descriptive sentences, explain the meaning of each of the following statements: a) D(500) = 2,000. b) D'(500) =-25.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose David is the owner of a start-up hamburger store. After 3 days of Grand Opening, David had received £59. This table below is the tracking of the 3-day sales. Chicken Burger Beef Burger Cheeseburger Total Revenue Day 1 Day 2 Day 3 1 2 3 £11 2 4 £21 3 5 £27 However, the one problem is that David forgot all the price of those types of burgers. Therefore, use the Cramer's rule to find out the price of each type of burgers.
Assume: 1) Two goods only: Good X and Good Y 2) Two (groups of) individuals: Individual A and Individual B 3) Utility function of Individual A: UA(Xa, Ya) = 300X4 –÷X + YA 4) Utility function of Individual B: Ug (Xg, Yg) = 100XB –÷Xỉ + Yg en = (ež, e%) = (150,20000) eg = (ež,e%) = (400,0) 5) Endowment for individual A: 6) Endowment for individual B: Write down and explain market clearing conditions, budget constraints and optimization conditions for the two individuals.
2- Answer the following questions: a) Show that Young's Theorem holds for the following function: f(x, y) = 9ye²xy. | b) Let z(x, y, w) = x² + wy +w², where w (r, s) = r² + s²₂ x (r,s) = r² — s² and y (r, s) = r. s. Find the partial derivative 6 =? 6s c) The foreign demand for our exports X depends on the foreign income X and our price level P: 1 X = Y + P-². Find the partial elasticity of foreign demand for our exports with respect to que price level. d) If production function is Q₁ = A(t) K³L, where A(t) is an increasing function of t, and K₁= Ko + at, and L. Lo + bt. Find the rate of change of output with respect to time? = www wwwww.w intim um momw
Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should begiven to Eren to offset his change un utility due to the price increase of an expensivemeal. Calculate the compensative variation (CV).
Consider Tralfamadore, a hypothetical country that produces only burgers. In 2018, a burger is priced at $4.00. Complete the first row of the table with the quantity of burgers that can be bought with $700. Hint: In this problem, assume it is not possible to buy a fraction of a burger, and always round down to the nearest whole burger. For example, if your calculations result in 1.5 burgers, the answer should be 1 burger. Price of a Burger Burgers Bought with $700 Year (Dollars) (Quantity) 2018 4.00 2019 Suppose the government of Tralfamadore cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 20% by 2019. Assuming monetary neutrality holds, complete the second row of the table with the new price of a burger and the new quantity of burgers that can be bought with $700 in 2019. The impact of the government's decision to raise revenue by printing money on the value of money is…
Answer the following questions using the following information. Columns 1 and 2 in the table below show the marginal utility that Cody gets by purchasing products A and B. Column 3 shows the marginal utility Cody gets from saving Assume that the price of A is $13 the price of B is $10, and Cody has an income of $129. a) Find the following series of MU/$ for each column. Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places Column 1 Column 2 Column 3 Units of A MU MU/S Units of B MU MU/$ Number of $ saved MU MU/S 68 6.8 1 80 6.15 1. 13 0. 2 71 5.46 2 63 6.3 2 10 0. 3 66 5.08 3 56 5.6 3 7 4 61 4.69 4. 46 46 0. 54 4.15 40 4 45 3.46 31 3.1 6. 1 39 3 22 2.2 0. 29 2.23 8 17 1.7 8 b) What quantities of A and B will Cody purchase in maximizing his utility? Quantity of A: 0 Quantity of B: 0 c) How many dollars will Cody save? Dollars Saved = $0 SAVE AND CLOSE
TU = Total Utilityf= is a function ofMU = Marginal UtilityO = units of consumptionA= infinitesimal change EMV= Equimarginal Value
help me with this and include explanations. thanks
For the following utility function find the MRS at (x, y) = (2, 3) a) U(x, y) =2x +y b) U(x, y) =x^3 y^2 c) U(x, y) =min(x, 2y) Solve subparts (c )correctly
Graph the isocost function and derive the linear equation associated with it. Budget=$100O, PK=$20 each and 10$ each after 20 units purchased, PL=$10 each
For a subsistence agricultural household, which of the following happen when the price of the staple they are producing increases? [SelectMultiple] Group of answer choices Due to profit effect, their utility as producers increases. The impact on overall welfare of the household is ambiguous since it depends on the relative forces of profit effect and price effect. Their is no effect since subsistence households never sell or buy their staple production. Due to price effect, their utility as consumers decreases.
In the last six months, the price of fuel for cars has increased very substantially in many countries. Given that the price of train travel has not changed over the last six months, Given that train travel has increased by 8%. What might you conclude about the relationship between train and car travel?