Inhabitants of the city , Managerial Economics

Assignment Help:

The city of Cabernet is very popular for its production of wine. The inhabitants of the city have an aggregate demand for wine that can be described as follows:

2105_aa.png


where Qd is the demanded quantity in bottles of wine and p is the price in euros per bottle. The producers' aggregate supply is:

2490_aa.png


whereQs is the supplied quantity in bottles of wine. The city makes only one quality of wine.
a) Search the equilibrium price and quantity.

b)  Compute the consumer and producer surplus, as well as the total welfare in the city of Cabernet. 

 

 


Related Discussions:- Inhabitants of the city

Direct taxes, DIRECT TAXES A direct tax is one where the impact and ...

DIRECT TAXES A direct tax is one where the impact and incidence of the Tax is on the same person e.g. Income Tax, death or estate duty, corporation taxes and capital gains

Structure, structure of managerial economics

structure of managerial economics

Scarcity and oppurtunity cost, define scarcity and oppurtunity cost.show ho...

define scarcity and oppurtunity cost.show how these concepts are useful in managerial decision making

Scarcity and oppotunity cost, how manager can apply scarcity and oppotunity...

how manager can apply scarcity and oppotunity cost in managerial decision making

Microeconomic objectives of government, The Microeconomic objectives of gov...

The Microeconomic objectives of government These are the policies which are concerned with the allocation and distribution of resources to maximize social welfare. 1. Allo

Permanent income hypothesis, What is the Permanent Income Hypothesis? What ...

What is the Permanent Income Hypothesis? What is the theory's potential relevance for assessing the effects of temporary tax cuts for the purpose of fiscal stimulus? If you were

Price-output determination under oligopoly, (Kinky Demand Curve) Short Peri...

(Kinky Demand Curve) Short Period Kinked demand curve was first used by Prof. Paul M. Sweezy to elucidate price rigidity under oligopoly. In an oligopoly market, firm knows that

The calculus of optimization, the demand for widgets(x) is given by: px=160...

the demand for widgets(x) is given by: px=160 -4x the production of widget has the following average variable cost: Avc=2x-20 fixed cost are 162 calculate the output level of widg

Managerial economic, gap between economic theory and business practice

gap between economic theory and business practice

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