Equal shares of the market for farm-raised catfish

Reference no: EM131128590

Four firms have roughly equal shares of the market for farm-raised catfish. The price elasticity of demand for the market as a whole is estimated at -1.5.
1. If all firms raised their prices by 5 percent, by how much would total demand fall?
2. What is the price elasticity if a single firm raises its price (with other firms' prices unchanged? Hint: Use the expression for elasticity in equation 3.8b, E _P= (dQ /dP)(P/Q), and note that the individual firm's output Q ₁is only one-quarter as large as total output Q.
3. Suppose that the quantity supplied by the four firms is forecast to

increase by 9 percent. Assuming that the demand curve for catfish is not expected to change, what is your forecast for the change in market price (i.e., what percentage price drop will be needed to absorb the increased supply)?

Reference no: EM131128590

Questions Cloud

Discuss number of nontraditional energy saving technologies : Additionally, your required multimedia sources discuss a number of nontraditional energy saving technologies. These technologies include such innovations as cool roofs, electric vehicles, alternative light bulbs.

What was the task the applicant engaged in : The applicant may not know the competencies you are seeking in an employee. It is the interviewer's task to identify which competency the applicant's behavior relates to. The interviewer records the applicant's response according to the following ..

Find the maximum height through which he can lift the water : Still thirsty, the Man of Steel repeats his attempt on the Moon, which has no atmosphere. Find the difference between the water levels inside and outside the straw.

What can be done to address the hazard or exposure : Identify the Loss Problem, Scope and Magnitude, Hazard and Exposure, Status of Control, Prevention, or Interventions and What can be done to address the hazard or exposure?

Equal shares of the market for farm-raised catfish : Four firms have roughly equal shares of the market for farm-raised catfish. The price elasticity of demand for the market as a whole is estimated at -1.5.

Advantages in relation to situation and culture at pegasus : Describe 3 models of change. Discuss their advantages and disadvantages in relation to the situation and culture at Pegasus.

Find the maximum charge on the capacitor : An uncharged capacitor and a resistor are connected in series to a battery, as in Active Figure 18.16a. If e = 12.0 V, C = 5.00 µF, and R = 8.00 105 O

Hardware component of a computer : Which of the following hardware component of a computer can also be called as engine?The sequence of phases, a software goes through from the concept to decommissioning, is called as.

Depreciation methods-solving for unknowns : For each of the following depreciable assets, determine the missing amount (?). Abbreviations for depreciation methods are SL for straight line, SYD for sum-of-the-years digits, and DDB for double-declining balance. Please show necessary steps to ..

User Account

All Pages