Innovation on the equilibrium quantity and price of milk

Assignment Help Business Economics

Reference no: EM13774108

The invention of a self-milking cow machine allows cows to milk themselves. Not only does this reduce the need for higher-cost human assistance in milking, but it also allows the cow to milk herself three times a day instead of two, leading to both a healthier cow and increased milk production.

A) Show the effect of this innovation on the equilibrium quantity and price of milk.

B) Show the likely effect on equilibrium price and quantity of apple juice (a substitute for milk).

Reference no: EM13774108

Questions Cloud

Calculate the deadweight loss created by the imposition : Consider a market with a demand curve of P=10-Q and a supply curve of P=Q. Before the imposition of a tax, equilibrium quantity is 5, and equilibrium price is $5 (verify this). If a tax of $5 per unit is placed on this market, quantity traded falls t..

Recovery and reinvestment act : "The American Recovery and Reinvestment Act of 2009--commonly called the "stimulus"--was designed to spur economic growth while creating new jobs and saving existing ones. Discuss the intersection of micro and macroeconomic policies this represents

Four phases of the disposition of a toxic compound : The use of DDT has been banned in the United States because of environmental damage and human health concerns. However, in malaria-plagued countries such as Africa, the World Health Organization approves the use of DDT for indoor residual house sp..

Why does the law make such a distinction : Why does the law make such a distinction and why would a party to a contract choose one type over another

Innovation on the equilibrium quantity and price of milk : The invention of a self-milking cow machine allows cows to milk themselves. Not only does this reduce the need for higher-cost human assistance in milking, but it also allows the cow to milk herself three times a day instead of two, leading to both a..

Describe concepts of criminal law : Differentiate between the concepts of criminal law, antitrust, and health care as they apply to U.S. health law in the 21st Century

Poor cybersecurity policy can disrupt business continuity : Analyze the connection between corporate governance and a company's cybersecurity posture. Provide at least three (3) points to justify whether or not there is an impactful relationship between corporate governance and a company's cybersecurity po..

When comparing perfect competition and monopoly : When comparing perfect competition and monopoly, a major assumption made is that

Hypothetical demand and supply curve for cyber cafes : Draw a hypothetical demand and supply curve for cyber cafes - coffee houses with computers hooked up to the Internet with access to daily newspapers (among other things) at each table. Show how demand or supply is affected by the following:

User Account

All Pages