User Account

All Pages

Equation for market demand for harry potter books

Assignment Help Macroeconomics
Reference no: EM131095181

Question 1: Laurel's individual demand for Harry Potter books is given by Ql = 50 - 2P . There are N consumers in the market for Harry Potter books in

  1. What is the equation for the market demand for Harry Potter books if all consumers have the same equation for demand as Laurel?
  2. What is the price elasticity of the market demand for Harry Potter at P = 12.5? Compare it to Laurel's price elasticity of demand at the same price. Which is larger? Why?

Question 2: Now consider the market for Harry Potter books in Privet Drive where there are two types of consumers. The first type love Harry Potter books and have an inverse demand curve of P = 10 - 0.5Q. The second type are fanatics and have an inverse demand curve of P = 30 - Q. There are only 2 consumers in the Privet Drive, one of them loves Harry Potter and one of them is a Harry Potter fanatic.

  1. Derive the market demand curves for each individual and the market demand curve for Privet Drive.
  2. Suppose the market supply for Harry Potter books in Privet Drive is given by Qs = 5 + P. Find the equilibrium price and quantity. How much does each consumer purchase at the equilibrium price?

Reference no: EM131095181

Questions Cloud

Depletion of the stock of fish in the economy : Suppose you were worried that national income did not adequately take into account the depletion of the stock of fish in the economy. Describe how you would advise the Commerce Department to take this into account in their calculation. Make up fictio..
Generic consider before making a decision : Generic Manufacturing Ltd. wants to know the net present value of two different machines they are considering purchasing. Machine 1 will cost $530,000 today and will generate the following cash flows:
What reaction would you expect from administration : What would be your approach and what reaction would you expect from administration when the new supply reduces costs of operation significantly?
Significance level that the slope regression coefficient : Background of question: I Am calculating the 5% significance level that the slope regression coefficient is statistically different from one. Question: Exactly why might this test be of special importance to a financial analyst? (What would a slope c..
Equation for market demand for harry potter books : What is the equation for the market demand for Harry Potter books if all consumers have the same equation for demand as Laurel? What is the price elasticity of the market demand for Harry Potter at P = 12.5? Compare it to Laurel's price elasticity o..
What are possible effects of health care reform : Think about what excites you most about the future of health care, focusing on the opportunities for health care reform. What are possible effects of health care reform from a financial and accounting perspective?
A company in a part of the world and domain : Choose a company in a part of the world and domain where you feel at ease, and which has both shares on the stock market and also corporate bonds outstanding.
Total quality management in the hospitality industry : TQM is teamwork; every functional department must work cohesively together and support each other in order to achieve business excellence. Different departments in a hotel have different roles in delivering the service to hotel guests.
How do insurance companies minimize its impact on premiums : What is adverse selection? How do insurance companies minimize its impact on premiums? Can adverse selection be a reversible principle in favor of the consumer?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Fiscal or monetary policy

Paul Volker was chairman of Federal Reserve system in the late 1970 and through most of the 1980.

  Write economic summary report

Write a five- to six-page economic summary report (not including the title page) that presents the economic viability of the Lemonade Stand Business

  Determine standard methods used in macroeconomics

Derive LM curve through one of the standard methods used in Macroeconomics. Be sure to label all axis and curves on your graph. Describe in writing to what your derivation brings equilibrium and how it accomplishes this.

  Move the equilibrium outcome to the socially-optimal outcome

How large would a corrective tax need to be to move this market from the equilibrium outcome to the socially-optimal outcome.

  Is price elasticity of gasoline elastic over a short period

Explain the relationship between the price elasticity of demand and total revenue. 2. Is the price elasticity of gasoline more elastic over a shorter or a longer period of time? Explain. 3. Determine whether each of the following is an explicit c..

  Problem 11 gdp is 1200 consumption is 900 gross private

problem 11. gdp is 1200 consumption is 900 gross private domestic investment is 150 exports are 50 and imports are 125.

  Good and quantity demanded of the good

What is the entire relationship between the price of the good and quantity demanded of the good?

  Explain what happens if a household looses half of their

What is a budget constraint? How does a budget constraint explain consumer choices when used in conjunction with indifference curves? Explain what happens if a household looses half of their income, using a budget constraint and indifference curves i..

  Formula to calculate the total or average variable

Could you calulate the total, average variable, and average cost, when a company marginal cost of production is $5.00 per unit.

  Illustrate a range of factors which might determine

Illustrate a range of factors which might determine whether an internal or external strategy is pursue such a growth strategy.

  1 please answer true or false and explain your answer a

1. please answer true or false and explain your answer. a consumer purchases a book by driving across town to a

  What happens to the price level

the short-run version of the AD/AS model, what happens to the price level, output, and employment when AD shifts to the left

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd