Determine the market equilibrium conditions

Assignment Help Operation Management

Reference no: EM13107877

John Barks owns Barks Computer Screens Inc. and wants to identify the supply and demand for screens in his market. The company can produce large screens called Wides or small screens called Squares. The production processes are interchangeable, and production can be adjusted depending on market conditions. The demand for both products is highly elastic in terms of price elasticity, and customers perceive the two products as close substitutes for each other.
Barks needs some help in completing his market analysis. Therefore, he hires you as a consultant and provides you with the results of his analysis. He has found that the functions for supply and demand in his market are:
Qd = 157 - 35P + 12.5Pw + 0.1Y
Qs = -120 + 75P - 30Pw + 13PL + 12R
Where:
Qd = Demand
Qs = Supply
Pw = Average price of Wides
Y = Income in his market
PL = Price of labor
R = Is the average humidity level measured in hums
Create a report answering the following questions:
Assume the quantities demanded and supplied are a function of price. Given the following conditions, determine the demand and supply curves for Barks Computer Screens Inc.

Pw = $6.00
Y = $1,600.00
PL = $9.00
R = 25

Calculate the market conditions (shortage, surplus, or equilibrium) for Wides if the following price conditions exist in the market: $1.75, $2.10, and $2.70.

Determine the market equilibrium conditions in this market for Wides.

Summarize your recommendations or advice to Barks concerning market conditions and production levels.

Reference no: EM13107877

Questions Cloud

What is the origin of the conflict : Freud's theory has been described as a "conflict theory of personality". What is the origin of the conflict? How according to Freud, is the conflict resolved to lead a "normal" development? When does neurosis (psychopathology) develop?

Chi-square test-allergic reactions : Langewitz, Izakovic, and Wyler (2005) reported that self-hypnosis can significantly reduce hay fever symptoms. Patients with moderate to severe allergic reactions were trained to focus their minds on specific locations where their allergies do not..

Discuss debtor creditor relationship : The University of North is the major state university. The University was preparing for its upcoming re-accreditation, so the University board set aside extra funds to make sure that the professors could travel for research purposes.

Hypothesis testing-chi-square test of variance : Statistics Test Scores - Tests in the author's statistics class have scores with a standard deviation equal to 14.1. One of his last classes had 27 test scores with a standard deviation of 9.3.

Determine the market equilibrium conditions : John Barks owns Barks Computer Screens Inc. and wants to identify the supply and demand for screens in his market. The company can produce large screens called Wides or small screens called Squares.

Hypothesis testing for motor vehicle department : Data from the Motor Vehicle Department indicate that 80% of all licensed drivers are older than age 25. In a sample of n=60 people who recently received speeding tickets, 38 were older than 25 years and the other 22 were age 25 or younger.

Chi-square test for gof : 510 people were asked which of four fast food restaurant were their favorite. Determine if there is a preference for any one place over any other.

Case study - neda operates a small convenience store : Neda operates a small convenience store in a southern town that has a high tourist draw. After several years of operating the store, Neda has decided to no longer sell tobacco products of any kind because of her belief that they are dangerous and lea..

Chi square test for association-food preference : A statistician is interested in determining whether food preferences depend on the country. The data is presented below. What is the correct statistical test for analyzing the data?

User Account

All Pages