Find the price-quantity and price elasticity of demand

Assignment Help Macroeconomics
Reference no: EM1315570

The Wozniak Corporation, a maker of aircraft engines, determines that in 2008 the demand curve for its product is as follows:

P = 2,000 - 50Q

Where P is the price (in dollars) of an engine, and Q is the number of engines sold per month

a) To sell 20 engines per month, what price would Wozniak Corporation have to charge?

b) If it sets a price of $500, how many engines will Wozniak sell per month?

c) What is the price elasticity of demand if price equals $500?

d) At what price, if any, will the demand for Wozniak's engines be of unitary elastic?

Reference no: EM1315570

Questions Cloud

Please analyze the financial condition of the company : Analysis of financial condition of a Company - Please analyze the financial condition of the company; under the following category: - profitability
Bar chart and expected frequencies for each class : Advertisers need to know which age groups are likely to see their ads. Purchasers of 120 copies of Cosmopolitan are shown by age group, (a) Make a bar chart and describe it. (b) Calculate expected frequencies for each class.
Determining different possible codes : If code is 4 random letters, and letters can be utilized multiple times, how many different possible codes are there?
Estimate the galois group : Estimate the galois group.
Find the price-quantity and price elasticity of demand : The Wozniak Corporation, a maker of aircraft engines, determines that in 2008 the demand curve for its product is as follows-What is the price elasticity of demand if price equals $500?
Questions related to interest rate calculations : Questions related to interest rate calculations - What effective annual rate of interest does she need to earn on the account to meet her goal
Estimaitng the cost of ordering and management : If company utilizing the best inventory policy, what would be the total cost of ordering and management?
Computation of present value of tax shields of the bond : Computation of present value of tax shields of the bond and Also compute the PVTS for $10 million debt if Doubles Co. issues i) 8% coupon bonds and ii) zero coupon bonds.
Linear programming model to maximize the profit : Formulate a linear programming model for this problem.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Examining energy efficiency and economic efficiency

Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.

  Categorize the utility functions

Suppose Shaqueena is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.

  Equilibrium price for given scenario

Allan Sports sells snowmobiles in a Northern Suburb of the Twin Cities. For the third year in a row sales have been dismal.

  Reasons and causes behind higher wage in germany

Give three reasons why firms produce in Germany rather than in a lower-wage country.

  Equilibrium output in perfect competition

Suppose the emarginal cost of producing the good in before question is aconstant $ 10 per unit of output . What quantity of output will the firm produce.

  Interest rate model and bond valuation

According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?

  Compute total cost and total revenue

Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.

  Changes in federal reserve and commercial banks

Show the changes to the T-accounts for the Federal Reserve and for commercial banks when the Federal Reserve buys $50 million in U.S. Treasury bills.

  Different cost calculations of cost equation

Assume you hire a furloughed Wall Street analyst to aid you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3.5Q2.  Using this equation, answer the following ..

  Prepare a project summary

Overview of the project's objectives and scope

  Decision making on profit maximization by marginal analysis

Suppose the marginal expense of hiring another worker is $150 and the marginal expense of hiring current workers for an extra hour is $10.

  Rate of inflation using money supply and real gdp

If velocity is unchanged and the money supply grows by 13% and the real GDP grows by 4%, what is the rate of inflation?

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!

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