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- The market for gravel has the following demand and supply relationships: Supply function: Q = 100P - 1,000 Inverse demand function: P = 50 - 0.01*Q + PX, where P represents price of gravel per ton in dollars, Q represents sales of gravel per week in tons, and PX is the price of some other product X in dollars per unit. Let PX = $50/ton In a diagram, qualitatively describe the change that would occur in the market for gravel (i.e. equilibrium price and quantity) if a new discovery has just made the production of product X cheaper. Briefly explain whether it is a movement along or shift of demand curve and supply curve for gravel. In addition to the new discovery regarding product X in previous question), suppose now workers producing gravel ask for sick leave due to COVID. Use supply and demand analysis to predict how these two shocks will affect equilibrium price and sales. Illustrate your results in a diagram. Is there enough information to determine if market prices will rise or…Which factor that influences change in buying plan, other than price of good? Find out market equilibrium price and quantity from the demand function: QD = 15-4p and supply function: QS= - 1+ 6p. Show it graphically.1).The inverse demand and supply function for a commodity are given by p×=-1\4qx+25 and qx=2px-5,respectively (a)determine the equilibrium price and quantity (b)determine the price elasticity of demand at the equilibrium (c)what is the state of the market at the price level PX=4......(2)when price of tea in a local cafe rises from br.10 to 15 per cup,demand for coffee rises from 3000 cups to 5000 cups a day despite no change in coffee prices (A) determine cross elasticity (B)based on the result ,what kind of relation exist between the two goods?....(3)The level of equilibrium price and quantity after a simultaneous upward(rightward) shift in demand and supply depends on the relative magnitude of the changes in demand and supply. Discuss with illustration....(4).Marginal utility and units of a good...unit:1,2,3,4....Good A:60,50,40,30 Good B:36,3018,12 Good C:16,14,10,8 Given (1) The price of commodity A(PA)=birr5,commodity B(PB)=birr3 and commodity C(PC)=1.(2)the total income of the…
- In the following question(s) you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X. Refer to the above. An increase in the price of a product that is a close substitute for X will: Group of answer choices a. decrease D, increase P, and decrease Q. b. increase D, increase P, and decrease Q. c. increase D, increase P, and increase Q. d. increase D, decrease P, and increase Q.Assume costs of production fell, resulting in an extra 20,000 units supplied at each of the above listed prices. With reference to your diagram in 1(a) (i) above and assuming that demand remains unchanged, draw the new supply curve. Clearly indicate the new point of equilibrium and the new equilibrium price and quantity.3. If the supply and demand functions for a commodity are given by 8p − q = 290 and (p+2)q =5720, respectively, find the price that will result in market equilibrium.
- Draw supply and demand curves. Now suppose both curves shifted. Illustrate a case for which market equilibrium price is higher and quantity is lower after the shifts of the curves.Question 6 The market demand curve Group of answer choices represents the sum of the prices all the buyers are willing to pay for a given quantity of the good. represents the sum of the quantities demanded by all the buyers at each price of the good. slopes upward. is found by vertically adding the individual demand curves.PROBLEM Consider the following: If the price per unit of good A is P175 quantity purchased is valued at 5,250 units and quantity supplied equals 2,500 units. If price changes by P1, quantity demanded changes by 4 units for consumer demand and quantity supplied changes by 2 units. Required (Show supporting calculations.): 1. Determine the demand and supply functions. 2. Determine the price and quantity at equilibrium, using algebraic solution. 3. Graph demand and supply curves on one set of axes and highlight the following: price-intercepts of demand and supply curves, quantity-intercepts of demand and supply curves, and the equilibrium point. (Make sure to LABEL your graph accordingly.)
- Question 42 If a binding price floor is imposed on the drone market, then the demand for drones will decrease. O the supply of drones will increase. O a surplus of drones will develop. a shortage of drones will develop. hsThe demand function of a good is given by p(Qd ) = 160 – Qd and the supply function by Qs = 150. a) Calculate the equilibrium price. Represent graphically. b) If supply changes to Qs = 120: What would be the new equilibrium price? Represent graphically. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Answer the question based on the following data. Price per Unit Quantity Demanded per Unit of Time $ 20 12 18 17 16 20 14 24 12 30 10 36 8 40 6 44 4 48 Over which of the following price ranges is the demand unit-elastic? Multiple Choice $18-16 $16-$14 $14-$12 $12-$10