Q3: The demand and supply functions of a two - commodity market model are as follow: 15 – 2p1 + P2 -(1) .(2) (3) (4) Qai ..... ... ....... Qs1 = -5 + 3p1 ... ....... Qa2 6+ P1 – P2 …. %3D ...... .... ..... Qs2 = -4 + 2p2 Find Pi* and Qi* (i=1,2) by Crammers rule?
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- Given below are the demand and supply functions for three interdependent commodities. Qd1 = 110 – 4P1 + 3P2 – 4P3 ; Qs1 = 2P1 – 20 Qd2 = 46 + 2P1 – 4P2 + 4P3 ; Qs2 = –14 + 2P2 Qd3 = 20 – P1 + 4P2 – 2P3 ; Qs3 = 2P3 – 10 (a)Determine the equilibrium prices and quantities for the three commodity Market model. (b)Then compute the price and cross elasticities of demand for the third market and interpret their coefficients.Given the demand nda supply functions for three inter-dependent commodities QD1 = 45-2P1 + 2P2 -2P3 QD2 = 16+2P1+P2+2P3 QD3 = 30- P1+2P2-P3 and QS1 = -5+2P1 QS2 = -4 + 2P2 QS3 = -5 + P3 respectively. Find the equilibrium prices and quantities of this three - commodity market model.Given below are the demand and supply functions for three interdependent commodities.Qd1 = 110 – 4P1 + 3P2 – 4P3 ; Qs1 = 2P1 – 20Qd2 = 46 + 2P1 – 4P2 + 4P3 ; Qs2 = –14 + 2P2Qd3 = 20 – P1 + 4P2 – 2P3 ; Qs3 = 2P3 – 10Determine the equilibrium prices and quantities for the three commodity Market model. Then compute theprice and cross elasticities of demand for the third market and interpret their coefficients.
- Consider the following Stackelberg model. There are two firms in the market. Firm 1 is the leader and firm 2 is the follower. Firms can decide to produce low or high. The extensive-form representation below presents the profits depending on production decisions of firms. The first value is profit of firm 1 and second value is profit of firm 2 depending on their production decisions. Solve using backward-induction. What are the optimal production levels of both firms? Describe how you found the optimal strategy using words.see the imageDescribe the traditional and interactive communications models of attitude change. Within these contexts, what are the mass-communications and uses-andgratifications theories? Further, discuss the Elaboration Likelihood Model and its implications for marketers.The COVID pandemic has changed where many people are able to do their work at the city or metro-area level. Which of the following best describes the predictions from a Rosen-Roback style model on how separating work (in the model, wage) from location of residence might impact house prices across different areas. O. This should put upward pressure on house prices (and population) in traditionally high-wage areas, and downward pressure on house prices (and population) in traditionally high amenity areas. O. This should put downward pressure on house prices (and population) in traditionally high-wage areas, and upward pressure on house prices (and population) in traditionally high amenity areas. O. This should put upward pressure on house prices across all areas, regardless of the initial factors associated with that area. O. This should put downward pressure on house prices across all areas, regardless of the initial factors associated with that area.
- 1) Explain the significance of the Prisoner's Dilemma, and how the model might be used to explain some forms of competition when there is uncertainty. 2) Explain the similarities and differences between Keynes' theory of consumption and Friedman's Permanent Income Hypothesis. 3) explain why the Marginal Rate of Substitution is equal to the price ratio for all goods, and its significance. 4) Briefly compare and contrast various models of how duopolists compete. 5) Explain whether the Efficient Market Hypothesis is a helpful theory, and why or why not. 6) Explain why financial theory rests on the mean and variance approach to the risk/return relationship. 7) Describe how Fisher and Modigliani helped explain our pattern of savings throughout our lifetime.QUESTION 5 Which one of the following statements about strategic investments is incorrect? A. Locational choice (as in the linear city model) B. R&D investment to reduce marginal cost of production can be an example of strategic investments. C. Capacity choice (as in the Stackleberg-Spence-Dixit model) can be an example of strategic investments. D. Price choice (as in the linear city model) is an example of strategic investments.What are the values of P1,P2,Q1,Q2 given the two commodity demand and supply model: Qd1=18−3P1+P2 Qs1=−2+4P1 Qd2=12+P1−2P2 Qs2=−2+3P2
- Three firms with identical marginal cost of 30 compete in a market with inverse demand of P = 50 - 8Q. If the firms behave as the Cournot model suggests, what is the pass through rate for a change in marginal cost?What is the likelihood that firms would enter the market in the short-run? Use COVID-19 as a market condition to elaborate the likelihood and further elaborate an exit strategy if one exists.5, What is meant by the phrase recognized mutual interdependence as it pertains to oligopoly? for managerial economics class