+1-415-670-9189
info@expertsmind.com
Demand and supply curves
Course:- Business Economics
Reference No.:- EM13191




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

1. 'Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.'

a. Draw the production possibility curve and list the underlying assumptions.

b. Explain the above statement by referring to your graph for question (a).

c. Explain fundamental economic questions which reflect the reality of scarce resources.

2. On April 20, 2010, an oil-drilling platform owned by British Petroleum exploded in the Gulf of Mexico, causing oil to leak into the gulf at estimates of 1.5 to 2.5 million gallons per day for well over two months. Due to the oil spill, the government closed over 25 percent of federal waters, which has devastated the commercial fishing industry in the area.

  1. Define consumer surplus and producer surplus. 
  2. Draw a standard supply and demand diagram which relates to the above situation.    
  3. Using the diagram in (b), explain how the reduction in supply from the reduced fishing waters will either increase or decrease consumer surplus and producer surplus. 

PART B

Suppose the demand and supply curves for eggs in the Malaysia are given by the following equations:

Qd = 100 - 20P, and Qs=10+40P

Where the Qd = millions of dozens of eggs Malaysian would like to buy each year; Qs = millions of dozens Malaysia farms would like to sell each year; and P = price per dozen of eggs.

  1. Fill the missing data in the table. Show your workings.                       

Price (per dozen)

Quantity demanded (Qd)

Quantity supplied (Qs)

Shortage/ surplus of supply

RM 0.50

 

 

 

RM 1.00

 

 

 

RM 1.50

 

 

 

RM 2.00

 

 

 

RM 2.50

 

 

 

  1. Use the information in the table to find the equilibrium price and quantity.
  1. Graph the demand and supply curves and identify the equilibrium price and quantity.

4.   Fill in the missing amounts in the following table:

  1. Fill the missing data in the table. Show your workings.

 

% CHANGE

IN PRICE

% CHANGE

IN QUANTITY

ELASTICITY

Demand for Ben & Jerry's Ice Cream

+10%

-12%

A

Demand for beer at San Francisco 49ers football games

-20%

B

-0.5

Demand for Broadway theater

tickets in New York

C

-15%

-1.0

Supply of chickens

+10%

D

+1.2

Supply of beef cattle

-15%

-10%

E

  1. Would you recommend that Ben & Jerry's move forward with a plan to raise prices if the company's only goal is to increase revenues? Explain.   
  2. Would you recommend that beer stands cut prices to increase revenues at 49ers football games next year?



Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Suppose a textbook publisher historically sells an econ book alone but then markets the new edition of the boo only as a bundle with an online hw supplement. Answer 2 parts: d
Consider the head-of-line priority system. Suppose that each priority class is divided into several subclasses with different "drop" priorities.For each priority subclass th
Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of gasoline. They estimated that in mass production
The rule that governs a country's policy toward its exchange rate is known as: A system in which exchange rates are set by government policy is a: A floating exchange rate is:
In the preceding problem, suppose the Federal Reserve announces a policy of printing $100 in new bills every day and giving them to Janet Yellen’s mom. At the moment the Fed a
Here are four individuals telling you their stories of how they became unemployed. In a multi-paragraph essay, apply the theories of unemployment to explain the type of unempl
Suppose Netflix’s representative customer’s demand curve in the market for DVD rentals is Q = 20 − 10P, where Q is the number of DVDs rented per month and P is in dollars per
The local government does not directly charge their residents for collecting garbage. However, the city faces increasing marginal costs of MC=1+0.7Q per ton. Residents' market