Reference no: EM13918634
Question 1: Suppose that you have been hired as an Economic Researcher by OPEC and given the following schedule showing the world demand and supply for oil:
Price (P) ($/barrel) Quantity Demanded (Qd)
(millions of barrels/day) Quantity Supplied (QS)
(millions of barrels/day)
10 60 20
20 50 30
30 40 40
40 30 50
50 20 60
Answer the following questions:
a. At what price, the oil market will be in equilibrium situation?
b. If OPEC produces 50 million of barrels/day, calculate its Total Revenue (TR)?
c. If the price of oil rises from $40 to $50 per barrel, what will be the Total Revenue (TR) from oil sales? Also mention either TR will increase or decrease?
d. When the price changes from $30/barrel to $40/barrel, calculate Price Elasticity of Demand (Ed)?
e. When the price changes from $30/barrel to $40/barrel, calculate Price Elasticity of Supply (Es)?
Question 2: Define the Law of Supply? Keeping in view the Law of Supply, how the following factors will shift the supply curve? (Each answer must be supported by a neat diagram):
a. If costs of raw material increases in the plastics industry;
b. If new technology is introduced in the automobile manufacturing;
c. If OPEC decides to reduce oil prices in the Gulf Region;
d. If government introduces some new taxes in the construction sector.
Question 3: Define and explain ‘Law of Diminishing Returns with the help of diagram. What are the different stages of production in the short run?
Question-4: Define and explain ‘Price Discrimination (PD)' with the help of diagram. Also give examples of Price Discrimination from the real world?
Question 5: Suppose the quantity demanded of good (Qd) depends only on the price of the good (P), monthly income (M), and the price of a related good R (PR):
a. Construct the demand curve for the good when M = $1,000 and PR = $5. The equation for demand is Qd =
b. Interpret the intercept and slope parameters for the demand equation in part a.
c. Let income decrease to $950. Construct the new demand curve. This good is _____________________ (normal, inferior). Explain using your graph.
d. For the demand curve in part c, find the inverse demand function:
e. Let the price of good R increase to $6 (income remaining at $950). Construct the new demand curve. Good R is a ______________ (substitute, complement) good. Explain using your graph.
f. For the demand curve in part e, find the equilibrium price and quantity when supply function is as under;
PE = ____________ and QE = ____________
g. Construct the supply curve and verify your answer by showing equilibrium price and equilibrium quantity graphically.
|
Discuss the organizational restructuring strategies
: Analyze and discuss the organizational restructuring strategies, such as rightsizing, verticalization, networking, delayering, and virtual teams, that one believes would be most beneficial.
|
|
Market price per share after the stock split
: How many shares of stock will you own after the split-What will happen to the market price per share after the stock split?
|
|
Excel with a concrete takeoff of the hunter nissan project
: Generate an Excel Spreadsheet with a detailed concrete takeoff of the Hunter Nissan Project. Include a worksheet for the continuous footing for the exterior portions of the building;
|
|
What is the average number of access lines in use
: What is the probability that 0, 1, 2, and 3 access lines will be in use? What is the probability that an agent will be denied access to the system? What is the average number of access lines in use?
|
|
Economic researcher by opec
: Suppose that you have been hired as an Economic Researcher by OPEC and given the following schedule showing the world demand and supply for oil:
|
|
Overhead and administrative expense budget
: 3. Overhead and administrative expense budget schedule for the month of June.
|
|
Cost recovery deduction
: Euclid acquires a 7-year class asset on May 9, 2015, for $80,000. Euclid does not elect immediate expensing under 179. She does not claim any available additional first-year depreciation.
|
|
What strategies developed to create a culture for innovation
: Consider a company you work for, have worked for, or are familiar with. How would the company benefit from skunk works? What goals would the skunk works team have at this company? How would the team accomplish those goals?
|
|
How many extension lines should be used if the company wants
: How many extension lines should be used if the company wants to handle 90% of the calls immediately? What is the average number of extension lines that will be busy if your recommenda- tion in part (a) is used?
|