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

Final Project #2, I do not understand what to do when it comes to the quest...

I do not understand what to do when it comes to the questions for the Social Responsibility and the Stakeholders on the Clean Power Company which is based in Cincinnati, Ohio has b

Demand and supply, discuss the concept of demand for the products that are...

discuss the concept of demand for the products that are being consumed by the different consumers

Elasticity of Demand, Question #1 A baseball team is trying to predict tick...

Question #1 A baseball team is trying to predict ticket sales for the upcoming season. They are also considering increasing prices. The market has a population of 2 million perso

Political partiy., two political party called hawks show apoint ppf that th...

two political party called hawks show apoint ppf that the hawks might choose and a point the doves might choose

Describe how your plan works for each of the residents , A university has ...

A university has a small dorm with four rooms, in which three sophomores, A, E, and J, and a freshman, C, are residing. Not being equipped with gas/electricity meters for individua

Calculate expected return, QUESTION 1 (a) Explain how CAPM provides a ...

QUESTION 1 (a) Explain how CAPM provides a framework for measuring the systematic risk of an individual security in a well-diversified portfolio, using the concept of security

What is social cohesion, What is social cohesion? Social cohesion: ...

What is social cohesion? Social cohesion: Social cohesion is regarding how united, cooperative, connected and trustful a society is. This cohesion desires tolerance for c

Is an unequal distribution of income and wealth a problem, Is an unequal di...

Is an unequal distribution of income and wealth a problem? Explain in short. Yes: because specified no government intervention, which on very low incomes cannot afford necessar

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