Estimating the total supply curve for groceries

Reference no: EM131773912

Qusetion: In a small town which has two grocery stores, the total demand and the total supply curve for groceries are estimated to be Qd = 100- P and Qs = 4P - 200. 3/3 The stores are thinking of merging due to the retirement of one owner. A local attorney is arguing against the potential merger, suggesting that the supply curve will become Q s =2P - 100 and the prices will go up and the consumer surplus will be reduced.

a) Do you agree? Please show all work to get credit for this question.

b) Illustrate your findings in a graph as well as with dollars for the change in consumer surplus.

Reference no: EM131773912

Questions Cloud

Determining how many workers bill hires : Suppose that Bill owns an automobile collision repair shop and the table below shows the quantity of cars repaired per month according to how many workers Bill.

Replication portfolio to prevent arbitrage : The value of the call option today must be equivalent to the value of the replication portfolio to prevent arbitrage.

Why is the rise of english in france : Why is the rise of english in France more acute that the rise of the use of spanish in the US?

Calculate cost of goods sold and ending inventory : Calculate cost of goods sold and ending inventory under the FIFO method, using the perpetual inventory system

Estimating the total supply curve for groceries : In a small town which has two grocery stores, the total demand and the total supply curve for groceries are estimated to be Qd = 100- P and Qs = 4P - 200.

Article and integrate course concepts : You will write up a review of the article and integrate course concepts into your review. Please make sure you both summarize the article.

Draw a correctly labeled loanable funds graph : Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situations: (You will have 3 graphs)

Discuss what is a standard cost : What is a standard cost, Provide an example of a manufacturing standard cost

Calculate per capita income and capital per worker : In the Solow growth model, suppose that the per-worker production function is given by y = zk3, with s = 0.25, d = 0.1, and n = 0.02.

User Account

All Pages