In a certain market, the demand for peach was given as QD = 400 -3P, the first day of marketing in 2020, in August 2020, the demand for peach is now given as QD = 200 -3P. a)From the statement above tell in one sentence the change in demand; considered the indicator? b)What  factors are responsible for the change in demand. Support your answers by sketching the equations above on the same graph.

Suppose Mai estimates two demand curves, one for data collected over a two-week period for her stores in two towns (Town 1 and Town 2). These demand curves result from regression equations in which Mai estimates quantity demanded as a function of price and no other variables. However, Mai recognized that other variables, such as sunshine or temperature, may affect the demand for pie Collecting this data requires effort. In which town should collecting such data be a higher priority for Mai if she is trying to improve her ability to predict pie demand? Explain. Suppose the R² statistic for the regression for Town 1 is 0.77 and for Town 2 is 0.67. A regression's R² statistic is a measure of OA. national representativeness. OB. goodness of fit. OC. functional form. OD. mean value. Mai should collect more data for statistic for its regression model is because the R 20- 10- 20 p. S per pie 1045 p. S per pie Town 1 10 20 30 Q. Thousands of pies per month Town 2 40

Calculate equilibrium price and equilibrium quantity and fill the following column Qd = 1,400 – 10P Os = -400 + 20P Os2 = -400 – 10P Os3 = -400 – 15P e. Table – 3 Šupply = 1,400 – 10P -400 + 20P Supply2 = -400 + 10P Supply3 = 400 + 30P Price Demand = 0. 20 40 60 80 100 120 140 160 Draw the three supple functions and one demand curves according to the estimation in the table-3 and point out equilibrium levels f. 160 140 120 100 80 60 40 20 600 700 800 900 1000 1100 1200 400 500

QUESTION 7 To mark national burger day there is a nationwide 50% sale on burgers during May. A recent survey, of those who bought burgers at supermarkets and food trucks, found that 99% of people will only eat burgers in a bun. Which of the following statements are true: The decrease in the price of burgers during May will cause a decrease in the quantity demanded of burgers. The decrease in the price of burgers in May will cause an increase in both demand and quantity demanded for buns. The decrease in the price of burgers in May will only result in an increase in the quantity demanded for buns. Economic theory is unable to predict if there would be any shift in demand for buns with the discount on burgers in May.

Problem 6: Suppose that your demand schedule for DVDs is as follows:   Price Quantity Demanded Income = Rs. 20000 Quantity Demanded Income = Rs. 24000 Rs. 18 80 DVDs 100 DVDs 20 70 90 24 55 60 28 35 40 32 24 28     Use the midpoint method to calculate your price elasticity of demand as the price of DVDs increases from Rs.24 to Rs.28 if (i) your income is Rs.20000 and (ii) your income is Rs.24000. Calculate your income elasticity of demand as your income increases from Rs. 20,000 to $24,000 if (i) the price is Rs.18 and (ii) the price is Rs.20.

Rising peanut prices have forced peanut butter makers to raise the price of peanut butter from $2 to $3 per jar, causing quantity demanded to fall. In addition, sales of jelly also dropped by 15%. Soon thereafter, makers of chocolate spread dropped its price from $4 to $3 per jar. This resulted in a further decline in peanut butter sales by 20%. What is the cross elasticity of demand between peanut butter and jelly (use the midpoint method)? Are these two products complements or substitutes?

Your firm, Content Colleague, is similar to Happy Worker, a Canadian company that designs and manufactures toys and collectibles. Your research analyst has estimated the demand function for your stuffed toy animals is: If you set the price of a plush toy at $6, the number of toys that consumers will buy is [ million. Q=30 million - (4 million x P).

The Globe and Mail (December 16, 1997) reported that milk consumption declined following price increases: “Since the early 1980s, the price of milk in Canada has increased 22 per cent. As prices rose, the demand for milk fell off. Total [consumption] of milk on a per capita basis dropped . . . to 2.62 hectolitres in 1995 from 2.92 hectolitres in 1986.” Use these data to estimate the price elasticity of demand for milk. (1.5marks) 0.49 milk is inelastic According to your estimate, what happens to milk producers’ revenue when the price of milk rises? (1 mark)   When the price of milk rises milk producers revenue drop because the demand for milk dropped Why might your estimate of the elasticity be unreliable? (Hint: Notice that The Globe and Mail is careless about the distinction between demand and quantity demanded.) (1 mark)

Suppose that during the past year, the price of a laptop computer fell from $2,950 to $2,450. During the same time period, consumer sales increased from 430,000 to 619,000 laptops.   Calculate the price elasticity of demand between these two price–quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.)     Original New Average Change Percentage Change Quantity              Price                Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price.   Step 2: Calculate the average quantity by adding the original quantity and the new quantity and then dividing by 2. Do the same for the average price.   Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do…

An economist estimates that a market has a demand curve of the form P = 37- (1.23) Q and a supply curve of the form P = 1 + (0.984) Q. (See the curves graphed in the figure below.) Accordingly, she estimates that the quantity equilibrium (Qe) in this market will be 16.26 (or 16.260163) and that the equilibrium price (Pe) in the market will be. (Answer may be rounded to nearest hundredth.) Supply X Demand Q OA. $20.84 O B. $12.20 O C. $23.00 O D. $17