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

Role of trade union in the wage bargaining process, Question 1: a. Desc...

Question 1: a. Describe the role of trade union in the wage bargaining process. b. Formulate a model that tests for the wage gap between union and nonunion earnings in a

Case Study, Harvard Business Review Case Study 9-572-029 Fisher Price Toys....

Harvard Business Review Case Study 9-572-029 Fisher Price Toys... Need help with the following questions: 1. Should Fisher Toys lauch the ATV Explorer? 2. What price tag should the

Alleviation of poverty, Question 1: Poverty reduction is generally infl...

Question 1: Poverty reduction is generally influenced by changes in average income and income redistribution. Thus, in practice it is hard to adjust to the right balance betwee

Internal constraints on government action LDCs, What are the internal const...

What are the internal constraints on government action less developed countries? Internal Constraints on Government Action LDCs: • Have restricted domestic resources to ac

How do institutions influence development, How do institutions influence de...

How do institutions influence development? Institutions development influence: Institutions matter since they give opportunities for people and firms to participate into

What is meant by ethical decision making and problem solving, QUESTION ...

QUESTION On a dark day, a train carrying more than 25 propane tankers derailed and began to burn. Upon arrival at the scene and conducting an initial size-up, the incident comm

Constraints facing governments in promotion of development, What are the co...

What are the constraints facing governments in the promotion of development? The constraints facing governments into the promotion of development: The capability of a govern

Assignment, Ask question critically evaluate the two main utility theories ...

Ask question critically evaluate the two main utility theories #Minimum 100 words accepted#

MGT285, Ask quWhich one of the following is TRUE? a. Small changes in t...

Ask quWhich one of the following is TRUE? a. Small changes in the annual growth rate amount to a measurable difference in the long-term growth trend of a country. b. For ev

How is effort monitored onto a project, How is effort monitored onto a proj...

How is effort monitored onto a project? It is significant that the effort to be spent onto activities is reassessed on a regular basis – why is it so very important? Effort is

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