Suppose the estimated supply function for avocados is given by QS = 48 + 15p – 10pf , where pf  is the price of fertilizer.  The estimated demand for avocados is given by Qd = 233 - 40p + 5pt , where pt  is the price of tomatoes per pound. Solve for the initial equilibrium price and quantity of avocados if the price of fertilizer, pf ,is equal to $0.35 per lb. and price of tomatoes, pt, is equal to $0.80 per lb. Solve for the new equilibrium price and quantity of avocados if the price of fertilizer, pf , increases to $0.90 per lb. and price of tomatoes, pt, remains $0.80 per lb. Use these equilibrium values from parts a. and b. to solve for the price elasticity of demand for avocados. Given your calculations, are avocados elastic, inelastic or unit-elastic? Have total expenditures on avocados increased, decreased, or not changed as a result of the change in the price of fertilizer?

Q: Your savings account balance at the end of May was $500. You made a $200 deposit on June 4 and…

A: Average Daily balance in June = sum of daily balance in june / total number of days in June

Q: Suppose that the production function is What is the average product of labor AP₁, holding capital…

A: Production function shows the relationship between the inputs used and output produced.  The average…

Q: Give typing answer with explanation and conclusion What is a monopsony and how does it affect…

A: A market structure known as a monopsony occurs when there is just one consumer for a specific good…

Q: 5. PA-100 and the In a market for dry cleaning, the inverse market demand function is given by…

A: An externality is a cost or benefit that is not reflected in the market price of a good or service,…

Q: Which of the following is a major factor in determining an individual's supply of savings? A:…

A: Income earned by people is either spent on consumption or kept in savings.  Saving is that part of…

Q: The market for smart phone applications is characterized by the following demand and supply curves.…

A: Given,  Demand: QD=D(P)=15-3P Supply: QS=S(P)=5+10P

Q: Considerthe following problem. There are five firms producing a homogenous good and competing in…

A: The demand is the willingness of an individual to pay in the market and his ability to purchase the…

Q: The Fed decides to reduce inflation. Use the Phillips curve to show the short-run and long-run…

A: The short-run Phillips curve, like the production possibilities curve and the AD-AS model, may be…

Q: Given a linear supply function of the form Q = -10 + 5Px, find the invers function. Select one or…

A: Supply curve shows a positive relationship between price and quantity supplied. It slopes upward for…

Q: Stock prices, as measured by the S&P 500 index, have: declined substantially since they peaked in…

A: The stock market volatility determines how much the overall value of stock markets fluctuates up and…

Q: Who is responsible for our current Tragedy of the Commons?

A: A condition known as the "Tragedy of the Commons" happens when individuals, acting in their…

Q: Consider the U.S. during the Great Depression and WWII –fertility rates were low (between 1929 and…

A: Fertility rate refers to the average number of babies that would be born to a women in her lifetime…

Q: Answer the given question with a proper explanation and step-by-step solution.  3. Use monopoly…

A: Monopoly is a term used to describe a situation where a single company or individual has control…

Q: Which of the following Lorenz curves represents the most equal distribution of incom

A: Lorenz curve is used to measure the income and wealth inequalities. The cumulative frequencies are…

Q: Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of…

A: Monopoly is a market condition with a single seller in the economy. The profit is maximized under…

Q: Do you think your examples help as a metaphor for economic development problems

A: introduction    A portion of the extra instances of complementarities in our everyday existence are:…

Q: Select all facts about the evolution of inequality in the world between 1960 and 2017? O Inequality…

A: When resources, opportunities, and rewards are distributed across people or groups in a society in…

Q: 1. In the Keynesian model, suppose that the economy has the following values : C = 100 + 0.75*Y G =…

A: The expenditure-output model, widely known as the Keynesian cross graphic, analyses the position in…

Q: A2 A1 Q2: If price of good X falls a) What will be the optimal basket of good? b) How can you…

A: Demand is the willingness to buy the products in the market and the ability to buy at the prevailing…

Q: Explain a main point in Maki Naro's "Vaccines Work. Here Are the Facts" for rhetorical analysis…

A: The production, distribution, and consumption of healthcare products and services are the main…

Q: 5. Individual Problems 7-5 Suppose you have a production technology that can be characterized by a…

A: The additional cost of producing a second unit of a good is known as the marginal cost (MC). Total…

Q: Asset Stocks Diamonds Oil Housing U.S. farmland Average price level Silver Bonds Stamps Gold Change…

A: Real value does not include the effect of inflation.  Nominal value include the effect of inflation.…

Q: Refer to the table below: Year 1950 1960 1970 1980 1990 2000 2010 2020 Participation Rates (Age 16…

A: The formula for calculating percentage change in an economic variable X between two periods:…

Q: = = 4q and k2q. Which 12. Suppose a company has the following contingent demands l of the following…

A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…

Q: For the following questions, you will need the following formula: let X₁ be the initial value, X, be…

A: Annual growth rate in economics refers to the percentage increase in the value of an economic…

Q: Given the following inverse demand function P=498.6 -2.6Q what is the consumer surplus at Pr =…

A: Demand Function P = 498.6 - 2.6Q Calculate Consumer Surplus at P = 178.3

Q: Justify the statement. True/False An advancement of technology leads to a boost in the economic…

A: Technology is said to advance when new methods, tools, or procedures are created and put into use to…

Q: Quantity Demanded (in kgs) 100 90 80 70 60 50 40 1. Plot and graph the data on the supply curve. P P…

A: ***Since the student has asked to solve some specific parts of the question, hence, the expert is…

Q: What lump sum of money must be deposited in a bank account at present time so that Php 500 per…

A: Given: Monthly withdrawal amount=Php 500 Number of years=5 First withdrawal scheduled= 6 years from…

Q: 1. Draw a production isoquant given that y = 500 for the following production functions: a. y(K, L)…

A: Isoquant shows the different combinations of two inputs that produce the same level of output. The…

Q: Section five: case study 1-Dairies make low-fat milk from full-cream milk. In the process of making…

A: ***Since the student has posted multiple questions, hence, the expert is required to solve only the…

Q: A monopolist in a given market faces inverse demand function P = 90 – 2 Q. Its cost structure is…

A: In a monopoly Market structure,  A monopolist produces where the marginal revenue is equal to the…

Q: All of the following statements are true, except: Select the correct answer below: Many countries in…

A: Introduction The pace of price growth over a specific time period is referred to as inflation.…

Q: PRICE (Dollars per unit) 36 30 24 18 6 A II, III I, III II, III, IV C B Social Cost Supply Demand…

A: The given graph shows a presence of negative externality. Supply curve shows private cost and demand…

Q: Use the following graph to answer the next question. Price Level AS3 AS₁ Real Domestic Output, GDP…

A: Supply refers to the number of services and products that a manufacturer is able to manufacture and…

Q: In an economy of a specific country, the economy's consumption schedule is given in the table below.…

A: DISCLAIMER  “Since you have asked multiple questions, we will solve the first three questions for…

Q: The solution provided does not match the one on top, how do you actually solve it?

A: Inverse Demand Function is given as ;- P(Q)=845-2Q     ; Total output Q=q1+q2 There are two firms…

Q: Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts…

A: Initial Investment = 5000 R-E = 1200 per year

Q: Question 1 The price of crude oil increased to its highest level due to conditions which impacted…

A: Demand-supply equilibrium: Demand is the aggregate demanded quantity made by all the market…

Q: QUESTION FOUR The following are given as FUNCTIONS of taxation: 1. Budgetary and allocation 2.…

A: A budget is a financial plan that details expected income and expenses for a specific time period,…

Q: Question #4 - Use the aggregate expenditures model to demonstrate the multiplier effect

A: Introduction The multiplier is the amount by which we multiply a preliminary shift in aggregate…

Q: Refer to the Figure 11a. If the economy is at point Er, a government creating economic policy in…

A: A positive output when actual output is greater than potential output. A negative output when…

Q: GIVEN INFORMATION: Think about Anteaterville's highly competitive smoothie market. Q is the…

A: ***Since the student has provided an incorrect demand function (Q = 1200p - 100p), hence, the expert…

Q: The consumption that a person forgoes when he or she consumes a certain good or service. For…

A: The Production Possibilities Frontier (PPF) refers to a graph that depicts all the different…

Q: The graph below refers to a significant increase in individual income taxes, taking them to their…

A: Equilibrium in the economy occurs at the intersection of aggregate demand (AD) and aggregate supply…

Q: Complete the following table. Note that the firm in question is profit-maximizing in a competitive…

A: A firm in a perfectly competitive market maximizes profit by producing at MC = P Here MC = Marginal…

Q: Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of…

A: According to the question above, There are four sectors given : Mining, Lumber, Energy, and…

Q: Emissions (tons/year) 2 MAC Firm 1 ($1000/ton) 0 12 16 1127 20 24 MAC Firm 2 ($1000/ton) 0 2 S 12 16…

A: Total abatement cost (TAC) is the cost of reducing emissions to a certain level, taking into account…

Q: 3) Briefly describe the "tit-for-tat" strategy? Suppose two players play the prisoners' dilemma game…

A: b. GPA is not a strong signal for future employees that work in the productive sector. It is because…

Q: The demand and supply in the market for textbooks are described by the following equations: Q ^ D =…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Market Surplus and Shortage Analysis

In everyday language, a “surplus” indicates that there is an excess of something, while a “shortage” means that there is a scarcity of it. In economics, “market surplus” refers to the condition where the quantity of a certain good more available than what is required or “demanded” by the market. In the same way, a “market shortage” refers to the condition where the quantity of a certain good is less available than what is “demanded” by the market. If quantity in demand is written as Qd and quantity that is supplied is written as Qs, then, the condition Qs > Qd indicates market surplus and condition Qd > Qs indicates market shortage.