Reference no: EM131182108
Suppose that the supply and demand schedules for a local electric utility are as follows:
![2445_1e091cc2-957a-4df2-b46f-e0dd700a0516.png](https://secure.expertsmind.com/CMSImages/2445_1e091cc2-957a-4df2-b46f-e0dd700a0516.png)
The price is in cents per kilowatt hour (kWh), and the quantity is millions of kilowatt hours. The utility does not operate at prices less than 13 cents per kWh.
a. Using graph paper and a ruler, or a computer spreadsheet or presentation program, carefully graph and label the supply curve for electricity.
b. On the same graph, draw and label the demand curve for electricity.
c. What is the equilibrium price of electricity? The equilibrium quantity? Label this point on your graph.
d. At a price of 17 cents per kWh, what is the quantity supplied? What is the quantity demanded? What is the relationship between quantity supplied and quantity demanded? What term do economists use to describe this situation?
e. At a price of 14 cents per kWh, what is the relationship between quantity supplied and quantity demanded? What term do economists use to describe this situation?
f. Sometimes cities experience "blackouts," in which the demands on the utility are so high relative to its capacity to produce electricity that the system shuts down, leaving everyone in the dark. Using the analysis that you have just completed, describe an economic factor that could make blackouts more likely to occur.
What is the new equilibrium price and quantity
: On a new graph, draw supply and demand curves corresponding to prices of 16 cents per kWh or less, after the innovations in efficiency. Also, for reference, mark the old equilibrium point from the previous exercise, labeling it E1.
|
How each action might affect imis stock price
: Discuss how IMI's stockholders, customers, and labor force would react to each of these actions and how each action might affect IMI's stock price.
|
Considering the sale of a new sound board
: Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,500, and the company expects to sell 1,500 per year. The company currently sells 2,000 units of its existing model per year..
|
How company identify in your research can use the cash flow
: Next, evaluate how the company identified in your research can use the cash flow statement to project efficient uses of the cash hoard it has accumulated.
|
What is the equilibrium price of electricity
: What is the equilibrium price of electricity? The equilibrium quantity? Label this point on your graph.
|
Describe four advanced boot options
: When a driver is verified, a unique digital signature is incorporated into it in a process called and File System can be used to encrypt individual files on a file system.
|
Project expected dollar-denominated cash flows consist
: International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consis..
|
Explain the given statement
: Explain the given statement. - It has been said that the rules for success are written outside the organization but competitive advantage must be found within the organization.
|
Derivatives to implement your strategy
: How would you use derivatives to implement your strategy? How would you implement the same trading idea without using forwards or futures contracts?
|