Suppose the market referred to in the previous problem is suddenly hit by a decrease in tastes and preferences. What will happen to Q in this market in the long run (relative to the initial equilibrium)? a) It will decrease b) It will not only decrease but fall to zero c)It will be unchanged d) It will increase e) It will be affected by what is known as the “Kazarosyan Effect”
Q: Suppose the market demand curve for cranberry is given by the equation Qd=500-4P, while market…
A: Demand function, Qd = 500 - 4P Supply function, Qs = -100 + 2P
Q: Consider a competitive market where firms are earning zero economic profit. Assuming no changes to…
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: You have just taken over the job of senior product manager for a line of Consumer Home Routers at…
A: Price elasticity of demand: It is the measurement of the percentage change in the quantity demanded…
Q: Two separate firms produce the complimentary goods of left shoes and right shoes. Assume the demand…
A: In economics, the marginal cost is the alternate withinside the overall cost that arises whilst the…
Q: Suppose there are 1,000 hot pretzel stands operating in New York City. Each stand has the usual…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Suppose you are an economist working in a watch factory operating in a competitive market. The cost…
A: Answer: Given, Total cost function: CT = 200 + Q2 Marginal cost function: MC= 2Q Fixed cost: FC =…
Q: The model of competitive markets relies on these three core assumptions: 1. There must be many…
A: On the basis of the given assumption for the existence of competitive market which is the following:…
Q: The model of competitive markets relies on the following four core assumptions: 1. There must be…
A: In a small town there are two providers of broadband.....- No, only a few sellers In a major…
Q: Using the market demand function, what is Px that will make all the buyers stop purchasing this…
A: Given Individual demand function: Qdx=65000-11.25Px+15PY-3.75I+7.5A Price of product Y is…
Q: If the demand function of a firm is Qp(p) = 50 – 3p and its supply function is Qs (p) = 14 + 6p.…
A: Equilibrium occurs where quantity demanded is equal to quantity supplied, that is where demand curve…
Q: Explain why the profit maximising price and quantity for a price-setting firm (in a market where it…
A: If we consider the Pareto efficient outcome then in such case the resources are used in the most…
Q: The market for Ramen noodle bowls is perfectly competitive. Market demand is given by Q=67-3P. If 19…
A: A perfectly competive market has large number of buyers and sellers who have complete information…
Q: Q)All of the following statements are true except A. consumers allocate their budgets to get…
A: The consumer equilibrium is the condition where the consumer preference of goods and services meet…
Q: What relationship, if any, can you detect between the facts that farmers’ fixed costs of production…
A: The law of supply established the quantity supplied of a good or service as a positive function of…
Q: Question 2 For each of the following events identify which of the determinates of demand or supply…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the…
A: The equilibrium is established where the demand and supply forces are equal. the change in the…
Q: Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether…
A: P = 900 – q1 – q2 For small store, I = 50,000 And MC = 0 For super market I = 1,75,000 And MC = 0
Q: Market demand is given as Qd = 400 - 2P. Market supply is given as Qs = 3P + 100. In a perfectly…
A: Quantity demanded refers to the quantity demanded by the consumers at different prices during a…
Q: Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether…
A: The inverse demand function is given as: a. Walmart stays out of market q1 = 0 and HEB also chooses…
Q: Suppose that there is a decrease in the number of firms in the market. 1.) Using the line drawing…
A: Market equilibrium is determined by the point at which demand is equal to supply.
Q: The demand function for a certain product is given by p = 50 – 10q where q is the quantity and q is…
A: Consumer surplus refers to the value to a product to a consumer that is more than the market value…
Q: Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether…
A: P = 900 – q1- q2 a) In the first stage, Walmart has a large scale supermarket, and as a result, HEB…
Q: Demand function P = 75 – 3Qd and supply function P = 25 + 2Qs Determine the market price and market…
A: Given: Demand function, P=75-3Qd Supply function, P=25+2Qs
Q: Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether…
A: The inverse demand function is given as: a. Walmart stays out of market q1 = 0 and HEB also chooses…
Q: Suppose a firm is currently producing 500 computers per week and charging a price of $1,000. How…
A: A negative demand shock refers to an unexpected or sudden decrease in the demand for any particular…
Q: If input costs are falling for the firms in a competitive industry, this will cause: A a leftward…
A: If the input cost are falling for the firms that means the cost of production will reduces.
Q: Assume the manager is located at point B in the diagram above, and he is charging a price of PO.…
A: Introduction Initially the manager demands at point B when he is paying price p0 and quantity q0. If…
Q: Efficient
A: In perfect competition, there are a large number of buyers and sellers who produce homogeneous…
Q: Rod N. Reel owns a dealership that sells fishing boats in an open price-searcher market. To develop…
A: Introduction Data of weekly sold boats and revenue of boats of Rod has given. Table: Price ($)…
Q: The model of competitive markets relies on these three core assumptions: 1. There must be many…
A: The market structure can be divided into four based on the degree of competition in the market and…
Q: News reports from the western United States occasionally report incidents of cattle ranchers…
A: A profit-maximization can be understood as a process of determining the level of output, and price…
Q: A firm knows that its price (P) and its output (Q) are related by the expression P = 80 – 2Q Find…
A: Price (P) and output (Q) are related by the expression P = 80 - 2Q Hence, Total Revenue TR = P x Q…
Q: The model of competitive markets relies on these three core assumptions: 1. There must be many…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether…
A: Given that. P = 900 – q1 – q2 For small store, I = 50,000 And MC = 0 For super market I = 1,75,000…
Q: Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the…
A: We are going to perform equilibrium analysis to answer this question
Q: Which of the following long-run supply functions is inconsistent with an increasing-co (Qs quantity…
A: Supply curve shows a positive relationship between price and quantity supplied. It slopes upward.
Q: Market demand is given as Qd = 80 – 2P. Market supply is given as Qs = 2P. In a perfectly…
A: The demand curve depicts the quantity of an item that customers are willing and able to purchase at…
Q: Consider that unusually good weather in Washington led to a bumper crop of blueberries in the state.…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: The supply function for a product is 2p − q − 60 = 0, while the demand function for the same…
A: Market equilibrium is found at a point where the ss(supply) function and the dd(demand) function…
Q: Which of the following statements about the static vertical product differentiation model is…
A: The incorrect statement amongst all of the options is D, i.e. "One of the three other statements is…
Q: Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether…
A: The inverse demand function is given as: a. In the first stage, Walmart has a large scale…
Q: When buyers in a competitive market take the selling price as given, they are said to be
A: A competitive market is a market where there are numerous producers who compete with each other to…
Q: The supply function for a product is 2p - 4 - 10 = 0. while the demand function for the same product…
A: The supply curve shows the relationship between quantity supplied and price. The supply curve is…
Q: Refer to Figure 14-7. Suppose a firm in a competitive market, like the one depicted in graph (a),…
A: The perfect competition is a type of market where there are a large number of buyers and sellers of…
Q: Suppose you own shares in a stock index fund that tracks the value of the S&P 500. The firm that…
A: Capital markets are places where profits and savings are channeled to those in need, amongst…
Q: Microsoft is the only business that sells Computer Operation System in the world. Assuming that…
A: Answer: b. Microsoft prices will be higher than marginal cost In the above question, Microsoft is…
Step by step
Solved in 3 steps
- Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether and how to enter a potential market. Market demand is given by the inverse demand function p= 900−q1−q2, where p is the market price margin, q1 is the quantity sold by Walmart and q2is the quantity sold by HEB. To enter the market, a retailer must build a store. Two types of stores can be built: Small and Large. A Small pantry store requires an investment of $50,000, and it allows the retailer to sell as many as 100 units of the goods at zero marginal cost. Alternatively, the retailer can pay $175,000 to construct a Large full-service supermarket that will allow it to sell any number of units at zero marginal cost. *Assume Walmart has built a Large full-service supermarket there (i.e.Walmartchooses to build a large full-service supermarketL1at the first stage). Calculate HEB’s profit for the following cases: a.) HEB chooses not to enter N′′ at the second stage after viewing Walmart’s…Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether and how to enter a potential market. Market demand is given by the inverse demand function p= 900−q1−q2, where p is the market price margin, q1 is the quantity sold by Walmart and q2is the quantity sold by HEB. To enter the market, a retailer must build a store. Two types of stores can be built: Small and Large. A Small pantry store requires an investment of $50,000, and it allows the retailer to sell as many as 100 units of the goods at zero marginal cost. Alternatively, the retailer can pay $175,000 to construct a Large full-service supermarket that will allow it to sell any number of units at zero marginal cost. Assume Walmart stays out of the potential market (i.e.Walmart chooses not to enterN1at the first stage,q1= 0). Calculate Walmart's profit for the following cases: a.) HEB chooses not to enter N at the second stage after viewing Walmart’s choice. b.) HEB chooses to build a small…Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether and how to enter a potential market. Market demand is given by the inverse demand function p= 900−q1−q2, where p is the market price margin, q1 is the quantity sold by Walmart and q2is the quantity sold by HEB. To enter the market, a retailer must build a store. Two types of stores can be built: Small and Large. A Small pantry store requires an investment of $50,000, and it allows the retailer to sell as many as 100 units of the goods at zero marginal cost. Alternatively, the retailer can pay $175,000 to construct a Large full-service supermarket that will allow it to sell any number of units at zero marginal cost. Assume Walmart stays out of the potential market (i.e.Walmart chooses not to enterN1at the first stage,q1= 0). Calculate HEB’s profit for the following cases: a.) HEB chooses not to enter N at the second stage after viewing Walmart’schoice. b.) HEB chooses to build a small…
- Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether and how to enter a potential market. Market demand is given by the inverse demand function p= 900−q1−q2, where p is the market price margin, q1 is the quantity sold by Walmart and q2is the quantity sold by HEB. To enter the market, a retailer must build a store. Two types of stores can be built: Small and Large. A Small pantry store requires an investment of $50,000, and it allows the retailer to sell as many as 100 units of the goods at zero marginal cost. Alternatively, the retailer can pay $175,000 to construct a Large full-service supermarket that will allow it to sell any number of units at zero marginal cost. *Assume Walmart has built a Small pantry store there (i.e.Walmart chooses to build a Small pantry store S1 at the first stage). Calculate Walmart's profit for the following cases: a.) HEB chooses not to enter N at the second stage after viewing Walmart’s choice. b.) HEB chooses…Walmart can be viewed as a first mover. Now suppose both Walmart and HEB are considering whether and how to enter a potential market. Market demand is given by the inverse demand function p= 900−q1−q2, where p is the market price margin, q1 is the quantity sold by Walmart and q2is the quantity sold by HEB. To enter the market, a retailer must build a store. Two types of stores can be built: Small and Large. A Small pantry store requires an investment of $50,000, and it allows the retailer to sell as many as 100 units of the goods at zero marginal cost. Alternatively, the retailer can pay $175,000 to construct a Large full-service supermarket that will allow it to sell any number of units at zero marginal cost. *Assume Walmart has built a Large full-service supermarket (i.e.Walmart chooses to build a large full-service supermarket L1 at the first stage). Calculate Walmart's profit for the following cases: a.) HEB chooses not to enter N at the second stage after viewing Walmart’s…Suppose there are 1,000 hot pretzel stands operating in New York City. Each stand has the usual U-shaped average-total-cost curve. The market demand curve for pretzels slopes downward and the market for pretzels is in long-run competitive equilibrium. Draw the current equilibrium, using graphs for the entire market and for an individual pretzel stand. Now the city decides to restrict the number of pretzel-stand licenses, reducing the number of stands to only 800. What effect will this action have on the market and on an individual stand that is still operating? Use graphs to illustrate your answer. Suppose that the city decides to charge a license fee for the 800 licenses. How will this affect the number of pretzels sold by an individual stand, and the stand’s profit? The city wants to raise as much revenue as possible and also wants to ensure that 800 pretzel stands remain in the city. By how much should the city increase the license fee? Show the answer on your graph.
- In a purely competitive market at its long-run equilibrium, which of the following is not true? a The marginal benefit of the last unit of the product equals the marginal cost of producing that unit. b The maximum willingness of buyers to pay for the last unit of the product equals the minimum acceptable price for the seller of that unit. c Price equals marginal cost, and they are equal to the lowest attainable average cost of production. d The combined amount of consumer and producer surpluses is at its minimum possible.Demand for parking in the City of Chambana is given by Qd = 210 – 0.5P, and the supply is Qs= P – 90, where price is in cents per car per day and quantity is in hundreds of cars parked per day. Draw a graph of the given demand and supply curve and label it as D0 and S0. Indicate numerically all relevant intercepts for your demand and supply curves on your graph. Find the short run equilibrium price and quantity in this market and label the numbers you found on the graph. State your equilibrium price and quantity under your graph; be careful in correctly using the units of measurement indicated in the directions for this question. Now, suppose that in order to fund improvements to the city’s parking garage, the city institutes a tax of 30 cents per unit of parking sold. E. Depict the effect of the tax by drawing an effective supply curve and label it as S1. Clearly show the direction of the shift and label the exact dollar amount by which it shifts. F. Indicate numerically all relevant…Consider the following perfectly competitive market for oranges: Qs = 5P Qd = 60 – 5P Now suppose that demand for oranges increases by 20 units at each price. After the increase in demand, which of the following is correct? Group of answer choices a The equilibrium price is unchanged, and the quantity traded increases by 20. b The equilibrium price increases by $2, and the quantity traded increases by 20. c The equilibrium price increases by $2, and the quantity traded increases by 10. d The equilibrium price increases to $8, and the quantity traded decreases to 40.
- Short-run supply and long-run equilibrium Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. 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.consider the market for corn in August 2020, a period where grain prices were quite low and the market for corn was in a short-run equilibrium. Draw a graph that shows supply and demand analysis for corn in August 2020 (put P on the vertical axis and Q on the horizontal axis). This graph will serve as a starting point for your analysis in Questions 2 and 3.In drawing this graph, please assume that the demand curve is downward sloping and supply curve is upward sloping Clearly show the market equilibrium in August 2020. Label the supply curve as S0; demand curve as D0; the equilibrium price as P0; and equilibrium quantity as Q0.Q)All of the following statements are true except A. consumers allocate their budgets to get the most value possible. B.when firms in perfect competition are away from the long−run equilibrium, the market is still efficient. C. firms get the most value out of their resources at every point along a consumer's demand curve. D. a competitive equilibrium achieves an efficient outcome. E. we derive a consumer's demand curve by finding how the best budget allocation changes as the price of a good changes.