Your company sells wristwatches in three separate markets: China, Japan and Korea. The demand curves are 9c = 50 1 -Pc 4 1 9j = 75 2 qk = 100-Pk. Pj a) Calculate and plot the inverse demand curve for each market. b) Calculate your aggregate demand curve. c) Calculate and plot your inverse aggregate demand curve.
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- Given the Aggregate demand function of US AD= 5000 + 0.7Yd. Interpret this equation and diagramatically express the equilibrium output.Due to COVID-19 the demand for bath tissue papers and paper towels increased by canadian citizen. It has increased the canadian Aggregate demand. True or False.Per-unit production cost is: A) a determinant of aggregate demand. B) real output divided by inputs. C) units of output divided by total input cost. D) total input cost divided by units of output.
- Many companies hold significant amounts of excess cash, that is, cash above the amount required for day-to-day operations. Does including excess cash as part of invested capital distort the ROIC upward or downward? Why?The weighted average TT/US dollar selling rate depreciated marginally by 0.05 percent to US$1 = TT$6.7838 in August 2021 from US$1 = TT$6.7802 in October 2020.” Create a supply and demand graph with the above information.Aggregate supply measures the level of real domestic output that will be produced at each price level. If theeconomy is operating beyond its full employment output, most of the available re-sources are alreadyemployed WHAT will be the impact on the per-unit production costs as econ-omy expands? Select one: Decrease initially and then rise Remain Unchanged Increase initially and then fall Decrease Increase
- Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. Show the short-run effect of this optimism on the aggregate-demand curve.A firm keeps a record of sales and prices over the past seven months, resulting in the following table: Price (ZMW/ton) Sales (tons) Nov. 1985 7.5 84.5 Dec. 8.0 82.0 Jan. 1986 8.0 84.0 Feb. 7.2 92.0 March 7.0 95.0 April 8.0 92.0 May 8.5 91.5 Use these observations to estimate demand as a linear function of both price and time. Further, utilise this function to estimate demand for the following month, on the assumption that: (a) price remains unchanged, (b) price increases to ZMW9/ton. Hence estimate the price elasticity of demand between these prices and find the price which would maximise sales revenue. Given the nature of the observations, comment on any difficulties in interpreting your results for decision-making purposes.Suppose the US economy enters a recession. During the recession, inflation falls and interest rates rise. What kind of change ("shock") to demand and or production is likely cause of the recession? Answer in one short paragraph. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- Consider the following actual and forecast demandlevels for Big Mac hamburgers at a local McDonald’s restaurant:DAY ACTUAL DEMAND FORECAST DEMANDMonday 88 88Tuesday 72 88Wednesday 68 84Thursday 48 80FridayThe forecast for Monday was derived by observing Monday’sdemand level and setting Monday’s forecast level equal to this demand level. Subsequent forecasts were derived by using expo-nential smoothing with a smoothing constant of 0.25. Using this exponential smoothing method, what is the forecast for Big Macdemand for Friday?Show the change, if any, from SRAS SRAS1 with an arrow indicating direction of change and explain why the change. Use short-run AD and AS analysis to illustrate the results of the following events. Then explain why ese changes have taken place. Each answer should be accompanied by a clearly labeled diagram. (A) There is a 25 percent decrease in the price of crude oil. SRAS SRAS, PRICE LEVEL AD REAL GDP (B) Price levels in Germanyand Great Britain considerably, while price levels in the United States remain unchanged . AD 1 AD SRAS PRICE LEVELTom Glass forecasts electrical demand for the Flatlands Public Power District (FPPD). The FPPD wants to take its Comstock power plant out of service for maintenance when demand is expected to be low. After shutdown, performing maintenance and getting the plant back on line takes two weeks. The utility has enough other generating capacity to satisfy 1,550 megawatts (MW) of demand while Comstock is out of service. Table shows weekly peak demands (in MW) for the past several autumns. When next in year 6 should the Comstock plant be scheduled for maintenance?