What is the equilibrium price and quantity

Assignment Help Business Management
Reference no: EM131073516

1. Hilton decides to build a luxury hotel near Genting highlands. The demand function for rooms in the luxury hotel is P=900-0.5q. The hotel total cost of maintaining a room is TC =10+2q2. Therefore, MC =4q.

a. What is the equilibrium price and quantity?

b. Calculate consumer surplus, producer surplus and total surplus

c. Impose a price ceiling of AED 760. What is the impact of the new price on the market of hotel rooms?

d. What is the new consumer surplus, producer surplus and total surplus?

e. When comparing old and new consumer surplus, producer surplus and total surplus. Who gained and who lost? Is the society better off or worse off after the change? Show graphically.

Reference no: EM131073516

Questions Cloud

Relationship between demand and changes : Describe the relationship between demand and changes in real income trough the income elasticity of demand formula. What is considered a normal and an inferior good? Mention an example for each type of good.
How do particular enterprises make themselves desirable : Question: How do particular enterprises make themselves ‘desirable' internationally? Enterprises/products/services you would define as desirable to yourself or your family
High fasting blood glucose levels : Findings on examination revealed high fasting blood glucose levels and high blood pressure. Cortisol levels were bellow normal. Which one of the following is the most likely explanation to account for the patient symptoms?
Discuss different ways to invest in the futures markets : Discuss different ways to invest in the futures markets available to investors. How should the novice investor put money into the futures markets? How should the sophisticated investor invest in the futures markets? Discuss the potential risk, reward..
What is the equilibrium price and quantity : 1. Hilton decides to build a luxury hotel near Genting highlands. The demand function for rooms in the luxury hotel is P=900-0.5q. The hotel total cost of maintaining a room is TC =10+2q2. Therefore, MC =4q. a. What is the equilibr..
Identify the type of merger activity : Discuss the new companies entering the market, mergers taking place in the industry (Identify the type of merger activity in your industry-horizontal, vertical, or conglomerate-and explain why you made that choice).
What can you do to change your behaviors : What can you do to change your behaviors?
Develop and describe your analytical framework : Develop and describe your analytical framework
Percentage of earnings retained : b. The percentage of earnings retained is reduced. The related ratio, dividend payout, is hence increasing. The P/E ratio has been stable. The dividend yield has increased and is high. The Market price per share is below the book value. It seems t..

Reviews

Write a Review

Business Management Questions & Answers

  Explain what about stuck in the middle strategy

What about stuck in the middle strategy and what about focused low-cost and focused differentiation strategies?

  Problem regarding the product design

In this assignment, you will need to think about the design, manufacture, and assembly of your laptop or desktop computer. In a 4- to 5-page Microsoft Word document, create a report describing the process needed to manufacture your computer. Includ..

  Conduct an appropriate quantitative analysis

You are an independent consultant, hired by the Vice President of Construction, American International Automotive Industries (AIAI). Review Case Problem S7-1. Conduct an appropriate quantitative analysis and provide the vice president with a decision..

  Show the business decisions making skills

Most business decisions are made under conditions of either risk or uncertainty and Is it easier to make a decision under risk or uncertainty conditions? Why?

  Business question managerial decision makingresearch the

business question managerial decision makingresearch the subject of the enron and arthur andersen relationship. discuss

  Evaluate the reasons to outsource goods and services

Evaluate the reasons to outsource goods, services, or production. Considering today's business climate, give your opinion on the most logical reason to outsource.

  Describe fundamental concepts of environmental science

Define demographic transition with a brief history of its development - Describe the 4 phases of demographic transition, including if the population is stable, growing, or declining in each.

  Investigation of possible violations of securities laws

Describe do you believe the provisions need to be strengthened to include forfeiture or reimbursement of any bonus or incentive-based compensation

  Organizational behavior fmc aberdeen vs fmc green river

A culture or sub-culture that works effectively in one part of an organization may not work well in another and those who have made it to the top have done so by building a high performance workplace around the corporate culture.

  In illustrate what way is participating on spot team

In illustrate what way is participating on spot team, in a musical band, or in orchestra good participating for being a member of work group on the job?

  Discussion of conflict within an organizationwhy and under

discussion of conflict within an organizationwhy and under what conditions can conflict be good or bad for an

  Calculate seasonal factors

Calculate seasonal factors Calculate seasonally-adjusted forecasts Specified Excel's multiple regression output, estimate Y

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