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

Explain the relationship between types of risk action, Explain the relation...

Explain the relationship between types of risk action and where each might be utilized. Risk actions are of mainly two types: avoidance actions and mitigation actions: Avoi

Multiplier, How static multiplier can be shown diagramatcally

How static multiplier can be shown diagramatcally

Asking process functionality to system under development, As selling is an ...

As selling is an ‘asking process’, how you could use this to assist you sell some further functionality to a system under development? When we use the buying cycle like a guide

Compare perfect and imperfect markets, Question 1 Explain the law of dimin...

Question 1 Explain the law of diminishing returns. What are its causes and effects? Question 2 Compare perfect and imperfect markets Question 3 A monopolist with a linea

Determine that will there be a positive demand for shares, Consider the eco...

Consider the economy (above) again where the following set of stocks is traded: x 1 =(2,2,0)    x 2 =(1,0,3)  x 3 =(0,2,4)        for the prices (p 1 , p 2 , p 3 )=(1, 1, 1).

Original to the new equilibrium, ITunes is rapidly dominating the global ma...

ITunes is rapidly dominating the global market for music sale. Assume that the download  price for Dance artist Calvin Harris's single "Feel So Close" is $1.19 and the number of  d

What is meant by the factor endowment theory, Question 1: a) Explain, ...

Question 1: a) Explain, with the use of examples, what is meant by the ‘Factor Endowment Theory'. b) According to you, can the ‘Factor Endowment Theory' be a reasonable e

Examine the specific aims of e-government initiatives, QUESTION ICT too...

QUESTION ICT tools are deemed to present considerable opportunities to support a nations' sustainable development. The potential of e-Government in developing countries however

Terms of trade, Difference between gross barter and net barter terms

Difference between gross barter and net barter terms

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