Economics, Business Economics

Assignment Help:
Quantitative demand for watermelons = 50-3P(wm) - 20P(hd) + 10 P(sc) + 0.001(income)
P(wm) = $4.00
P(hd) = $3.00
P(sc) = $2.00
Income = $40,000

Quantity supply of watermelons = 22 + 4P(wm)


A) What is the quantitative effect of a 5% demand shock in the watermelon market? Determine the effect on price, quantity demanded, and quantity supplied of watermelon.




B) Now consider a simultaneous supply shock in the watermelon market of -10% due to an extreme drought. This supply shock occurs at the same time as the 5% demand shock. Determine the effect on price, quantity demanded, and quantity supplied of watermelon.

Related Discussions:- Economics

How can less developed countries economies produced, How can less developed...

How can less developed countries economies produced by developing its primary sector as agriculture? Less developed countries economies cannot grow by developing its primary se

Why are markets considered as unsuitable for promoting, Why are markets con...

Why are markets considered as unsuitable for promoting development? The process of establishing a market system frequently includes radical reform which produces both winners

Long-run average cost curve, Why might the point at which the long-run aver...

Why might the point at which the long-run average cost curve levels out change over long periods of time? include a diagram.

Calculate the irr, You are evaluating a project that has the following cash...

You are evaluating a project that has the following cash flows: -100 today, then cash inflows of 20, 30, and 40 for the next three years, respectively, and thereafter cash flows gr

Can less developed countries economies grow, Can less developed countries e...

Can less developed countries economies grow by developing services as tourism? Less developed countries economies grow by developing services as tourism when: The less deve

Traditional Theory Of Profit Maximization, Do you agree with the traditiona...

Do you agree with the traditional theory that assumes profit maximization as sole objective of a business firm?

Explain how are exchange rates determined, Question 1 ‘The consumer is ...

Question 1 ‘The consumer is always king in the market place'. Critically examine this statement, highlighting the existence of market imperfections. Question 2 (a) Dis

Development through resource transfer - low income countries, DEVELOPMENT T...

DEVELOPMENT THROUGH RESOURCE TRANSFER is explained below The chief idea here was that (as mentioned previous) poor countries suffered from the savings and foreign exchange gaps

Write Your Message!

Captcha
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