User Account

All Pages

Plot the demand and supply curves with prices

Assignment Help Business Economics
Reference no: EM132559553

Consider a market for golf balls, described by the following supply and demand functions

qS = -6 + 2p

qD = 14 - 3p

(a) Plot the demand and supply curves with prices on the vertical axis and quantity on the horizontal axis. (Hint: Don't forget the convert the given demand and supply functions to inverse demand and inverse supply functions with P on the left side only.) Clearly label the axis and the curves.

(b) What are the equilibrium price and quantity in this market? Can you show them in the plot you made in part (a).

(c) Calculate the Consumer Surplus, Producer Surplus, and Total Welfare levels. Show these in your plot for part (a).

(d) At the equilibrium price and quantity, what is the price elasticity of demand?

(e) Interpret the price elasticity of demand. If the owner of the firm wanted to maximize revenue, would they prefer a higher, lower, or the same price?

(f) Does a firm always want to maximize revenue? Explain why or why not

Reference no: EM132559553

Questions Cloud

Average variable cost and average fixed cost functions : From your result in part (b), derive the average total cost, average variable cost and average fixed cost functions.
Analyze the legal principle of respondeat superior : When delegating assignments to unlicensed personnel, what considerations need to be considered? Analyze the legal principle of Respondeat Superior.
Derive the marginal rate of substitution : Consider a situation where a consumer demands two goods, x and z with the utility function U¯ = x 0.4 z 0.6
What the researchers said they were going to measure : Are instruments of the variables in the study clearly defined and reliable? Make sure the variables were consistently applied throughout the study.
Plot the demand and supply curves with prices : Plot the demand and supply curves with prices on the vertical axis and quantity on the horizontal axis.
What is the best pricing and packing policy : A monopolist firm produces a special soft drink. There are 20 H-type and 40 L-type consumers with the following demand functions:
Competitive markets may apply mixed bundling : Firms that have market power can apply the mixed bundling strategy to increase their profits. Some researchers claim
Describe the health care organization or network : Research a health care organization or network that spans several states with in the United States (United Healthcare, Vanguard, Banner Health, etc.).
Calculate demand of leisure and consumption : Describe the workers problem, including its budget constraints, and calculate her demand of leisure and consumption

Reviews

Write a Review

Business Economics Questions & Answers

  Explain relationship between scarcity choice and cost

Explain the relationship between scarcity, choice and opportunity cost. A well-structured answer will include:

  Monopolistic competitors average fixed cost

Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table: What will be the monopolistic competitor’s average fixed cost at the output it chooses? Why is the l..

  Explain how debt reduction in developing countries

Explain how debt reduction in developing countries can improve the economies of advanced countries.

  Consider an entrepreneurial legend

Identify at least one important entrepreneur that you would consider an "entrepreneurial legend" and state why you consider the person to be (or have been) exemplary. You must also identify at least one economic decision made by this entrepreneur tha..

  Consider a simultaneous-move auction

Consider a simultaneous-move auction in which 2 players simultaneously select bids, which must be in nonnegative integer multiples of one cent.

  Determine the breakeven volume if each unit can be sold

Tech Engineering Inc. makes a consumer product for which the following cost data are available. Fixed cost/ year = $120,000 Variable costs/ unit = $15 Determine the breakeven volume if each unit can be sold for $40.

  Compare the tax incidence in the short run to the long run

Suppose the government institutes a tax on soft drinks. Assume that short-run and long-run demand curves are the same, while the long-run supply curve is more elastic than the short- run supply curve. Compare the tax incidence in the short run to the..

  Why are conclusions drawn about voter sociology

Assume which an innovation reduces a industry's fixed costs also reduces cost from ATC to ATC. Before the innovation reduced the cost, the industry's maximum economic profit was

  Implication for country exchange rate in monetary approach

Explain the implication for a country’s exchange rate in the monetary approach and in the portfolio balance approach of (a) an autonomous decline in the demand for money at each interest rate by the country’s citizens, and (b) a change in expectation..

  Find the proportion of individuals in this population

In a given population, the probabilities of dying in successive 10-year intervals, in percent, are [6, 4, 4, 4, 4, 8, 15, 20, 40, 100]. Assume that total deaths in each interval occur evenly throughout the interval. Find the proportion of individuals..

  What are the price change effects on demand

Briefly, what are the Price Change Effects on Demand in the Short-Run and Long-Run? PLEASE, your answer must have GRAPHS and be typed not a photo because I'm taking an exam and need to copy and paste the answer as is.

  Values and norms of islam that is hostile business

Can you see anything in the values and norms of Islam that is hostile business?' what does the experience of the region around Kayseri teach about the relationship between Islam and business?

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