Market Equilibrium, disequilibrium, Floor and Ceiling Prices, CS, PS, DWL Based on the following functions, compute for the: Demand: P = 1200 – 4Q Supply : P = 655 + 2Q Draw the graph for items (2-3)
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Based on the following functions, compute for the:
Supply : P = 655 + 2Q
- Draw the graph for items (2-3)
- Compute for eQ
- Compute for eP
Step by step
Solved in 3 steps with 1 images
- Market Equilibrium, disequilibrium, Floor and Ceiling Prices, CS, PS, DWLBased on the following functions, compute for the:Demand: P = 1200 – 4QSupply : P = 655 + 2Q Draw the graph for items 2-3 What is the Ps? Compute for the DWL (Black)Demand and supply in a market are described by the equation: Qd=66-3P Qs=-4+2P Solvealgebraically to find equilibrium price and quantity.Given the following equations: Qdx = 73-4P Qsx = 3P+8 The prices are , 1 ,2 ,3 Required: a )Find demand and supply tables b)Find demand and supply curves c)Find the equilibrium price and quantity mathematically d)Draw the equilibrium graphically
- (A) The monthly supply of desktop personal computers is given by the equation QS = 15,000 + 43.75P. At a price of $800, what is the price elasticity of supply? Q 2. (B) The British Automobile Company is introducing a brand new model called the "London Special." Using the latest forecasting techniques, BAC economists have developed the following demand function for the "London Special": QD = 1,200,000 - 40P a) What is the point price elasticity of demand at prices of (a) $8,000 and (b) $10,000? b) Is it Elastic, Unit Elastic or Inelastic, Explain why? (A) Phoenix Lumber Company uses the number of construction permits issued to help estimate demand (sales). The firm collected the following data on annual sales and number of construction permits issued in its market area: No. of Construction Sales Year Permits Issued (000) (1,000,000) 2003 6.50 10.30 2004 6.20 10.10 2005 6.60 10.50 2006 7.30 10.80 2007 7.80 11.20 2008 8.20 11.40 2009 8.30 11.30…Subject: Manegerial Economics & Policy The maker of a leading brand of low-calorie microwavable food estimated the following demand equation for its product using data from 26 supermarkets around the country for the month of April: Q = -5,200 - 42P + 20PX + 5.2l + 0.20A + 0.25M (2.002) (17.5) (6.2) (2.5) (0.09) (0.21) R2 = 0.55 n = 26 F = 4.88 Assume the following values for the independent variables: Q = Quantity sold per month P (in cents) = Price of the product = 500 PX (in cents) = Price of leading competitor’s product = 600 I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarket is located = 5,500 A (in dollars) = Monthly advertising expenditure = 10,000 M = Number of microwave ovens sold in the SMSA in which the supermarket is located = 5,000 Using this information, answer the following questions: Compute elasticities for each variable. Do you think that this firm should cut its price to increase its market…Subject: Manegerial Economics & Policy The maker of a leading brand of low-calorie microwavable food estimated the following demand equation for its product using data from 26 supermarkets around the country for the month of April: Q = -5,200 - 42P + 20PX + 5.2l + 0.20A + 0.25M (2.002) (17.5) (6.2) (2.5) (0.09) (0.21) R2 = 0.55 n = 26 F = 4.88 Assume the following values for the independent variables: Q = Quantity sold per month P (in cents) = Price of the product = 500 PX (in cents) = Price of leading competitor’s product = 600 I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarket is located = 5,500 A (in dollars) = Monthly advertising expenditure = 10,000 M = Number of microwave ovens sold in the SMSA in which the supermarket is located = 5,000 Using this information, answer the following questions: (remaining parts) Interpret your results for each variable. What proportion of the variation in sales is explained by the…
- Subject: Manegerial Economics & Policy The maker of a leading brand of low-calorie microwavable food estimated the following demand equation for its product using data from 26 supermarkets around the country for the month of April: Q = -5,200 - 42P + 20PX + 5.2l + 0.20A + 0.25M (2.002) (17.5) (6.2) (2.5) (0.09) (0.21) R2 = 0.55 n = 26 F = 4.88 Assume the following values for the independent variables: Q = Quantity sold per month P (in cents) = Price of the product = 500 PX (in cents) = Price of leading competitor’s product = 600 I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarket is located = 5,500 A (in dollars) = Monthly advertising expenditure = 10,000 M = Number of microwave ovens sold in the SMSA in which the supermarket is located = 5,000 Using this information, answer the following questions: (remaining parts) Do you think that this firm should cut its price to increase its market share/revenue? Explain. What…Given: 6x+10y-42=0, is it a supply or a demand function? a.) supply functionb.) demand functionMarket Equilibrium, disequilibrium, Floor and Ceiling Prices, CS, PS, DWLBased on the following functions, compute for the:Demand: P = 1200 – 4QSupply : P = 655 + 2Q The government imposed a P300 tax on Producers Draw the graph for items 2-3 Determine the New eQ What is the Pb?
- onsider the supply function: Qs = 60 + 5P – 12 PI + 10F , Where Qs = quantity supplied, P = price of the commodity, PI = price of a key input in the production process, and F = number of firms producing the commodity. Interpret the slope parameters on P, PI, and F. Derive the equation for the supply function when PI =$90 and F = 20. Sketch a graph of the supply function in part b. At what price does the supply curve intersect the price axis? Give an interpretation of the price intercept of this supply curve. Using the supply function from part b, calculate the quantity supplied when the price of the commodity is $300 and $500. Derive the inverse of the supply function in part b. using the inverse supply function; calculate the supply price for 680 units of the commodity. Give an interpretation of the supply price.The R J smith corporation is a publisher of romance novel. The corporation hires an economical to determine the demand for its product. After months of hard work the analyst informed that the demand for the firm's novel is given by the following equation: Q=12000-5000 Px+5I+500 Pc Where, P, is the price charged for the R J Smith novel. I is the income per capita. PC, is the price of books from competing publisher. Assume, that the initial values of Px, I and Pc are. $5, $10000 and $6 respectively. Using the information, the manager wanted to (i) determine what effect a price increased would have on total revenue. (ii) Evaluate how sale of the novels would change during a period of rising incomes. (iii) Assess the probable impact if competing publishers would raise their price .National enegry security: Demand for oil (d): Qd = 60 - P Domestic supply of oil (Sd): QS = -30 + 2P (a) Calculate the self-sufficiency or autarky solution (P3, QS3 = QD5, imports = 0) in the figure above. How much is TNB? Answer: Area of triangle EFH. Graph it. Hint: Set demand = Supply and solve for the equilibrium price and quantity. You need the vertical intercept for demand and for supply to calculate CNB and PNB or TNB. Can you graph it? TNB =EFH? (b) Suppose the world price is given at Sf0 = P0 = $8. Calculate the inefficient open market allocation (P0, QD5, imports = QD5 - QS1). . How much isTNB? Graph it. Hint: plug the world price into the supply and demand equations and calculate imports for this solution (c) Suppose the World price + VP is given at Sf1 = P1 = P0 + VP= $9. Calculate the Efficient allocation (with vulnerability premium) (P1, QD4, imports = QD4 - QS2). TNB? Graph it. Hint: plug the world price + VP into the supply and demand equations. How…