Market Demand And Demand Equation For The Fruit Sellers

Suppose that the quantity sold of a product at the One Product Company depends on the price that it charges for the product. Specifically, as its price gets higher its sales decreases according to the following Sales Response Curve:

1. When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is ( )

d. Calculate the price elasticity of demand in each market and discuss these in relation to the prices to be charged in each market.

The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services and has estimated demand in three categories low, medium and high.

In this problem, we analyze the profit found for sales of decorative tiles. A demand equation (sometimes called a demand curve) shows how much money people would pay for a product

a) Draw and properly label the demand and supply graphs (this means you must label the axes and any lines you include on the graph).

Suppose a frost destroys much of the Florida orange corp. At the same time, suppose consumer tastes shift toward orange juice. What would we expect to happen to the equilibrium price and quantity in the market for orange juice?

What is the effect on the equilibrium price and equilibrium quantity of orange juice if the price of apple juice decreases and the wage rate paid to orange grove workers increases?

A price ceiling set below the equilibrium price means that the quantity supplied ____ the quantity demanded so that a ____ exists.

a.) Draw and properly label the demand and supply graphs (this means you must label the axes and any lines you include on the graph).

They are thinking about making the movie available for download on the Internet, and they can act as a single-price monopolist if they choose to. Each time the movie is downloaded, their Internet service provider charges them a fee of $4. The Baxter brothers are arguing about which price to charge customers per download. The accompanying table shows the demand schedule for their film. Price of download Quantity of downloads demanded $10 0 $8 1 $6 3 $4 6 $2 10 $0 15 a. Calculate the total revenue and the marginal revenue per download. b. Bob is proud of the film and wants as many people as possible to download it. Which price would he choose? How many downloads would be sold? c. Bill wants as much total revenue as possible. Which price would he choose? How many downloads would be sold? d. Ben wants to maximize profit. Which price would he choose? How many downloads would be sold? e. Brad wants to charge the efficient price. Which price would he choose? How many downloads would be sold? Answer to Question: a. The accompanying table calculates total revenue (TR) and marginal revenue (MR). Recall that marginal revenue is the additional revenue per unit of output Price of download Quantity of downloads TR MR demanded $10 0 $0 $8 1 $8 $8 $6 3 $18 $5 $4 6 $24 $2 $2 10 $20 $-1 $0 15 $0 $-4 b. Bob would charge $0. At that price, there would be 15 downloads, the largest quantity they can sell. c. Bill would charge $4.

For the month of September, our expected demand is 380 units of Double Team (Fries and Hotdog with Drinks). 380 orders would consist of 28,476.63grams of fries and 18,984.42grams of hotdog; in cooking this, it will consume 12,643.62ml of oil; to make the juice, 4,746.11grams of powdered juice and 6,075.01ounces of water is needed; and 380 cups and 380 straws because 1 unit of Double Team needs 125g of Fries, 50g of Hotdog, 33.3ml of Oil, 12.5g of juice powder, and 16oz of water, 1 straw and 1 cup. In order to meet this demand for the month of September, we must be able to sell at least 16 orders of Double Team per

Accordingly, we will first "analyze" competitive markets, by discussing demand and supply separately. Then we will try to put them back together (synthesize them) in order to understand the working of competitive markets.

The markets today are so complex and deal with so many variables it can be difficult to understand just exactly how they operate. In the following I will reveal the different kinds of market structures along with their different pricing strategies. Relating to these topics, I will focus on the importance of cost, competition and customer.

1.Identify the sources of internal and external data for all three (3) types of customers.