Graph analysis of demand and supply curves

Assignment Help Macroeconomics
Reference no: EM1315886

Suppose that the quantity of corn supplied depends on the price of corn(P) and the amount of rainfall (R). The demand for corn depends on the price of corn and the average level of income, Y: The equations describing the supply and demand relationships are

Qs = 20R + 100P

Qd = 4000 - 100P + 10Y

Sketch a graph of demand and supply curves that shows the effect of an increase in rainfall on the equilibrium price and quantity of corn. Do price and quantity increase or decrease?

Reference no: EM1315886

Questions Cloud

Computation of optimal bundle : Suppose Sally only purchases food and clothing, and her utility can be expressed as U = F _ C. Currently-What is her optimal bundle?
Sketch indifference curves by using given data : Draw indifference curves to represent the following types of consumer preferences-I like peanut butter, but neither like nor dislike jelly.
Show comparisons of per capital gross domestic product : Multiple choice questions on CVP analysis, Profitability ratios, Variance analysis and Comparisons of per capital gross domestic product (GDP)between countries:
Hypothesis test using p-value : write down the hypothesis the test used the p-value and the interpretation then hand calculates a 95% CL for the odds ratio estimate on this last test.
Graph analysis of demand and supply curves : Sketch a graph of demand and supply curves that shows the effect of an increase in rainfall on the equilibrium price and quantity of corn. Do price and quantity increase or decrease?
Break-even-sales and units and bep chart : Break-even-sales, units and the BEP Chart - develop a breakeven chart for the text book and evaluate the number of copies they must sell to earn an operating profit of $21,000 on this book
Use the binomial theorem : Use the binomial theorem
Finding the expansion path : Suppose a production function is given by f(K;L) = KL 2 What combination of labour and capital minimizes the cost of producing any given output?
Margin of error for the population proportion : Find the margin of error for the 95% confidence interval used to estimate the population proportion.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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