During the 1950s the wholesale price for chicken for a country fell from 25c per pound to 14c per pound, while per capita chicken consumption rose from 21.5 pounds per year to 27 pounds per year. Assume that the demand for chicken depended linearly on the price.(a) Construct a linear demand function q(p), where p is in cents (e.g., use 14c, not $0.14).Then, find the revenue function. R(p).R(p) =(b) What wholesale price for chicken would have maximized revenues for poultry farmers?¢ per poundSecond derivative test:Your answer above is a critical point for the revenue function. To show it is a maximum, calculate the second derivative of the revenue function.R"(p)=

Demand function seeks to explain how the quantity demanded by buyers is related to the price of a…

During the 1950s the wholesale price for chicken for a country fell from 25e per pound to 14e per pound, while per capita chicken consumption rose from 21.5 pounds per year to 27 pounds per year. Assume that the demand for chicken depended linearly on the pric (a) Construct a linear demand function q(p), where p is in cents (e.g., use 14e, not $0.14). Then, find the revenue function. R(p). R(P) = (b) What wholesale price for chicken would have maximized revenues for poultry farmers? e per pound Second derivative test: Your answer above is a critical point for the revenue function. To show it is a maximum, calculate the second derivative of the revenue function. R"(p)=

During the 1950s the wholesale price for chicken for a country fell from 25e per pound to 14e per pound, while per capita chicken consumption rose from 21.5 pounds per year to 27 pounds per year. Assume that the demand for chicken depended linearly on the pric (a) Construct a linear demand function q(p), where p is in cents (e.g., use 14e, not $0.14). Then, find the revenue function. R(p). R(P) = (b) What wholesale price for chicken would have maximized revenues for poultry farmers? e per pound Second derivative test: Your answer above is a critical point for the revenue function. To show it is a maximum, calculate the second derivative of the revenue function. R"(p)=

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The estimated monthly U.S. demand function for avocados is Q=144-40p + 20pt where p is the price of avocados and pt is the price of tomatoes. The estimated supply function is Q = 50+ 15p. The initial price of tomatoes is $0.80 per pound. Using algebra, determine the initial equilibrium price and quantity of avocados, and then determine how price and quantity change if the price of tomatoes increases by $1.35 to $2.15. Given p = $0.80, the initial equilibrium price of avocados is and the initial equilibrium quantity of avocados is (Enter your responses rounded to two decimal places.) p=$ Q=₁
Now, we can plot the demand and supply curves on a graph, with P on the vertical axis and Q on the horizontal axis. Demand curve: P = 833 - Q To plot the demand curve, we can start with a point on the vertical axis where P = 833 when Q = 0. Then, we can plot additional points by subtracting values of Q from 100 and finding the corresponding values of P using the equation P = 833 - Q. This gives us the following demand curve: Supply curve: P = Q - 32 To plot the supply curve, we can start with a point on the vertical axis where P = -32 when Q = 0. Then, we can plot additional points by adding values of Q to 50 and finding the corresponding values of P using the equation P = Q - 32. This gives us the following supply curve:
1. As an agriculture analyst for the Union of American Fruit Producers (UAFP), you are in charge of monitoring the US peach market. The market can be described by the following "calibrated" demand and supply functions: Qd = 1600-8P +8Pn Qs = 34P-102 (1) (2) where P is the price of a crate of peaches, Pn is the price for a crate of nectarines, and Qd and Q, are the quantity demanded and the quantity supplied of peaches (measured in thousands of crates). (a) Find the inverse demand and inverse supply equations. Hypothetically, how many crates of peaches should UAFP expect consumers to buy if peaches are given away free of charge in a marketing campaign? If the price of a crate of peaches was to increase, at what price would buyers no longer be willing to buy any peaches? (Hint: your previous answers will be expressions that depend on the value of P) If the price of peaches was to decrease, at what price would the quantity of peaches supplied fall to zero? (b) Assuming that P₁ = $55,…
Your marketing department project that the supply function for bottles of wine is given by; Qxs=1800 +3Px −5Pr− 1Pw Question: How many bottles need to produce? Given: Px= 290 Pr= 210 Pw= 1,600 Required: a. Compute the linear supply function b. Compute the inverse supply function
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At what price, will demand be equal to 728 for the following demand function Q(P) = 3403 – 25 P
Demand for parking in the City of Chambana is given by Qd = 210 – 0.5P, and the supply is Qs= P – 90, where price is in cents per car per day and quantity is in hundreds of cars parked per day. Draw a graph of the given demand and supply curve and label it as D0 and S0. Indicate numerically all relevant intercepts for your demand and supply curves on your graph. Find the short run equilibrium price and quantity in this market and label the numbers you found on the graph. State your equilibrium price and quantity under your graph; be careful in correctly using the units of measurement indicated in the directions for this question. Now, suppose that in order to fund improvements to the city’s parking garage, the city institutes a tax of 30 cents per unit of parking sold. E. Depict the effect of the tax by drawing an effective supply curve and label it as S1. Clearly show the direction of the shift and label the exact dollar amount by which it shifts. F. Indicate numerically all relevant…
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Let's say jacky has a demand function for a product made in Ney york city given that the function D(q)=-1.15q+270, where q is the number of items in demand and D(q) is the price per item, in dollars, that can be charged when q units are sold. Say that the fixed costs of production for the item is $5,000 and variable costs are $10 per item produced. If 100 items are produced and sold, what are the finds :
The demand for product X depends on the price of product X as well as the average household income (Y) according to the following relationship Qdx=800-5P+0.001Y The supply of product X is positively related to own price of product X and negatively dependent upon W, the price of some input. This relationship is expressed as: Qsx= 100+ 45 P-4 W Given that Y = 50,000 and W= 4, what is the 1. Equilibrium price? Number 2. Equilibrium quantity? Number Suppose that income increases to 60,000 and W remains constant. What is the new: 3. Equilibrium price? Number 4. Equilibrium quantity? Number Assuming that income remains constant at 60,000 and W increases to 9, what is the new: 5: Equilibrium price? Number 6. Equilibrium quantity? Number
The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) What is the demanded quantity for apple now, based on this equation? a. 3 million kilos b. 6 million kilos c. 9 million kilos d. 12 million kilos e. All the other answers are wrong.