Determine equilibrium quantity exchanged nd price of popcorn

Assignment Help Econometrics

Reference no: EM13222391

A notable source of income for movie theatre owners comes from food sales at their concession stands. Suppose the demand for medium-sized popcorn servings on Saturday nights at movie theaters is: Qd = 200 - 15Pp + 2Pn - 5Pc. In this equation, Pp is the price per medium-sized popcorn; Pn is the price per serving of nachos; and Pc is the price per bag of candy. From the information in the equation, determine whether nachos are substitutes or complements for popcorn. Is candy a substitute or complement for popcorn? Briefly explain each answer.

Assume that the supply curve for popcorn is determined by the following: Qs=12Pp. Assume further that today's price of nachos is $6 per serving and of candy is $4 per bag. Determine the equilibrium quantity exchanged and price of popcorn.

Next consider the more general relationship between the price of popcorn and the price of candy. Assuming that the price of nachos continues to be $6 per serving, but allowing the price of candy to vary, find an expression for the equilibrium price of popcorn as a function of the price of candy.

Reference no: EM13222391

Questions Cloud

Explain balanced equations for the reaction of anthracene : Balanced equations for the reaction of resorcinol in water, resorcinol in toluene, and resorcinol in hexanes. Balanced equations for the reaction of anthracene in the same three solvents.

What are the risks to suppliers associated with each : What are the risks to suppliers associated with each of the different types of contracts (fixed-price, incentive, and cost-based contracts)?

Improve the employee engagement : Improve the industry experience of existing employees and improve the employee engagement

What is the optimal stocking level : The cost of baking a cake is $6 and demand is estimated to be normally distributed with a mean of 25 and a standard deviation of 4. What is the optimal stocking level?

Determine equilibrium quantity exchanged nd price of popcorn : Assume that the supply curve for popcorn is determined by the following: Qs=12Pp. Assume further that today's price of nachos is $6 per serving and of candy is $4 per bag. Determine the equilibrium quantity exchanged and price of popcorn.

Determine the freezing point of pure camphor : the freezing point of pure camphor is 178.4 degrees C, and its molal freezing-point constant, Kf, is 40.0 degrees C/m. Find the freezing-point of a solution containing 3.00 g of a compound (molar mass=125 g/mol) dissolved in 45.0 g of camphor

Locate the fire station using the center-of-gravity model : If it is anticipated that zone 2 (which houses senior residents) will be visited twice as frequently as any other zone, where would you locate the fire station using the center-of-gravity model?

Determine how many pizzas would have to be sold : Determine how many pizzas would have to be sold to break even.

Explain a radioisotope used to evaluate heart function : a radioisotope used to evaluate heart function in exercise stress tests, decays by capturing one of its own core electrons. it also emmits gamma rays. write an equation for its nuclear decay, then identify the daughter isotope

User Account

All Pages