Suppose that good weather positively affects supply of bananas in Costa Rica. How a moderate shift in the supply curve caused by this event is going to affect total revenue generated at this market if in the initial market equilibrium demand is inelastic? total revenue goes up total revenue does not change total revenue goes down

Suppose that good weather positively affects supply of bananas in Costa Rica. How a moderate shift in the supply curve caused by this event is going to affect total revenue generated at this market if in the initial market equilibrium demand is inelastic? total revenue goes up total revenue does not change total revenue goes down

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 31P: Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as...

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Consider any market where the Supply Curve is given by O = 25 + 0.2P and the Demand curve is given by 500-0.3P Ask: a) Calculate prices and equilibrium quantity of this market b) Consider that this market operates with prices equal to 900.00. What's happening? c) Regarding the result found in (b), consider the impacts of a change in the supply curve to O = 50+0.2P. Discuss the results and plot the fit graphs on the supply curves.
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1.i) Assuming you are the managing director of a firm that produces goods: A,B and C .The price elasticity of demand for A is 1.2, for B it is 1.oo and C is 0.75. It is known that he's firm is experiencing serious cash flow problems and you have to increase total revenue as soon as possible. If you were in a position to set the prices for these goods, what would be your pricing strategy for each product ii) price falls from N$ 16 to N$ 12 per bottle and demand rises from 200 to 300 per bottle.calculate the PED using midpoint formula Output prices average (total)cost Total cost marginal cost Total profit/loss 10 10 -108 20 10 4 -48 30 10 5 3 40 10 6.20 40 50 10 8 60 60 10 10 60 2. i) fill in the gaps ii)in which market structure doess Johnson Electronics (Pty)Ltd operate? iii)what level of output maximizes the firms profit
he market supply curve of rubber erasers is given by QS = 35,000 + 2,000P. The demand for rubber erasers can be segmented into two components. The first component is the demand for rubber erasers by art students. This demand is given by qA = 17,000 - 250P. The second component is the demand for rubber erasers by all others. This demand is given by qO = 25,000 - 2000P. Derive the total market demand curve for rubber erasers. Find the equilibrium market price, quantity, and consumer surplus for the total market demand for rubber erasers. The Equilibrium Price is $______, the equilibrium Quantity is ____ erasers, and the consumer surplus is $_____..
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