Demand and supply of the product are both highly sensitive

Assignment Help Operation Management

Reference no: EM13994710

Various beverages are sold by roving vendors at Busch Stadium, home of the Saint Louis Cardinals. Demand and supply of the product are both highly sensitive to changes in the weather. During summer months the demand for ice cold beverages grows rapidly. On the other hand, hot, dry weather has an adverse effect on supply in that it taxes the stamina of the vendor carrying his or her goods up and down many flights of stairs. The only competition to this service maybe beverages purchased at kiosks in the stadium. Demand and supply functions for ice cold beverages per game are as follows QDX = 20,000 – 10,000P + 20,000PK + 2Y + 500T QSX = 2,000 + 60,000P – 900PL – 1,000PC – 200T Where P is the average price of an ice cold beverage ($ per beverage) PK is the average price of beverages sold at kiosks Y is the average income level of baseball fans T is the average daily temperature (F o Degrees) PL is the average price of labor ($ per hour) PC is the average cost of capital in percent 1. When quantity is expressed as a function of price what are the ice cold beverage demand and supply curves when P = $11; PK = $1.50; Y = $25,000; T = 80o F; PL = $10, and PC = 12 % (Note for PC do not use decimal equivalent) 2. Show the supply curve equation with P = f (QSX) 3. Show the demand curve equation with P = f (QDX) 4. Calculate the equilibrium price and quantity 5. Calculate the prices necessary to sell and purchase the following QX: 55,000 to 130,000 beverages in increments of 15,000 beverages 6. Is PK a substitute good or complimentary good? Why?

Reference no: EM13994710

Questions Cloud

Effective way to decrease the incidence of foodborne illness : which of the following is the most effective way to decrease the incidence of foodborne illness?

Another cipher : Another cipher, which has been historically used by the Freemasons, is removing all the vowels from a word. Write a function string removevowels(string s) that returns a copy of the string s, with vowels removed. For example, can you guess what was s..

Corporate finance concept of market efficiency : To evaluate the corporate finance concept of market efficiency, equity issuance and shareholders' wealth as well as supported by the foundation of corporate finance theories.

What is the most expensive car that he can afford : A recent engineering graduate intends to purchase a new car. He plans to pay $2000 down and to finance the balance over a Cyear period. The maximum amount that he can repay each month is $200. What is the most expensive car that he can afford, assumi..

Demand and supply of the product are both highly sensitive : Various beverages are sold by roving vendors at Busch Stadium, home of the Saint Louis Cardinals. Demand and supply of the product are both highly sensitive to changes in the weather. During summer months the demand for ice cold beverages grows rapid..

Prepare the journal entry to record the contingent liability : By the traditional approach to measuring loss contingencies, what amount would Heinrich record at the end of 2011 for the loss and contingent liability?

What conditions this relationship would not hold in reality : In theory, other things being equal, a percentage increase in a country’s rate of inflation should lead to a percentage decrease in the value of its currency. Under what conditions this relationship would not hold in reality.

Use at least two functions with prototypes : It must use at least two functions with prototypes. At least one function needs to correctly and appropriately use pointers. (10 point bonus if both functions correctly and appropriately use pointers.)

For the fourth programming practice : For the fourth programming practice, you will need to write a program to do a task of your choice. You can write any program you like as long as it does at least the following five things. You can make the program harder than this if you wish. This..

User Account

All Pages