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Akron Enterprise Limited (AEL). TABLE 1 Price per pair Quantity Quantity Market Pressure on $ Demanded supplied Condition price 105 25000 75000 Surplus 90 30000 70000 75 40000 60000 Downward 60 50000 50000 45 60000 35000 30 80000 20000 Shortage 15 100000 5000 Upward Other information regarding AEL are as follows: Fixed Cost = $2000 Variable Cost = 20Q a. Complete the table above: b. Graphically illustrate market equilibrium using the information in the above table. c. Calculate and interpret the price elasticity of demand using the midpoint formula as the price of a pair of shoe rises from $60 to $75.

Akron Enterprise Limited (AEL). TABLE 1 Price per pair Quantity Quantity Market Pressure on $ Demanded supplied Condition price 105 25000 75000 Surplus 90 30000 70000 75 40000 60000 Downward 60 50000 50000 45 60000 35000 30 80000 20000 Shortage 15 100000 5000 Upward Other information regarding AEL are as follows: Fixed Cost = $2000 Variable Cost = 20Q a. Complete the table above: b. Graphically illustrate market equilibrium using the information in the above table. c. Calculate and interpret the price elasticity of demand using the midpoint formula as the price of a pair of shoe rises from $60 to $75.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
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1. The following table shows the demand and supply for a popular pair of shoes sold by Akron Enterprise Limited (AEL). TABLE 1 Price per pair Quantity Quantity Market Pressure on $ Demanded supplied Condition price 105 25000 75000 Surplus 90 30000 70000 75 40000 60000 Downward 60 50000 50000 45 60000 35000 30 80000 20000 Shortage 15 100000 5000 Upward Other information regarding AEL are as follows: Fixed Cost = $2000 Variable Cost = 20Q a. Complete the table above: b. Graphically illustrate market equilibrium using the information in the above table. c. Calculate and interpret the price elasticity of demand using the midpoint formula as the price of a pair of shoe rises from $60 to $75. d. Explain and graphically illustrate a price floor implemented by the government using an appropriate price in the table above. е. If Akron Enterprise Limited sells its product at the equilibrium price, calculate total revenue and total profit. f. At what level of price(s) identify above is a shut-down price for Akron Enterprise Limited. g. Graphically illustrate the shutdown position for a typical firm.
Transcribed Image Text:1. The following table shows the demand and supply for a popular pair of shoes sold by Akron Enterprise Limited (AEL). TABLE 1 Price per pair Quantity Quantity Market Pressure on $ Demanded supplied Condition price 105 25000 75000 Surplus 90 30000 70000 75 40000 60000 Downward 60 50000 50000 45 60000 35000 30 80000 20000 Shortage 15 100000 5000 Upward Other information regarding AEL are as follows: Fixed Cost = $2000 Variable Cost = 20Q a. Complete the table above: b. Graphically illustrate market equilibrium using the information in the above table. c. Calculate and interpret the price elasticity of demand using the midpoint formula as the price of a pair of shoe rises from $60 to $75. d. Explain and graphically illustrate a price floor implemented by the government using an appropriate price in the table above. е. If Akron Enterprise Limited sells its product at the equilibrium price, calculate total revenue and total profit. f. At what level of price(s) identify above is a shut-down price for Akron Enterprise Limited. g. Graphically illustrate the shutdown position for a typical firm.
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