Determine equilibrium price and quantiy-consumer surplus

Assignment Help Business Economics

Reference no: EM131240921

The supply and demand curves for apples are given below.

P=Q+2(SUPPLY CURVE)

P=14- 1/2 Q (DEMAND CURVE)

1.Graph the market for apples.

2. Determine the equilibrium price and quantiy..

3. Calculate consumer surplus.

4. SHOCK !The supply curve to P =Q+5 . Graph the shift. What is possible cause of this shift?

a. there is a sudden increase in population

b. the price of apples goes down

c. there is a drought

d. robots start picking apples(they are really good and do not have to be paid)

5. determine the new equilibrium. How have equilibrium price and quantiy changed?

6. calculate new consumer surplus. Are consumers better off or worse off after the shock?

Reference no: EM131240921

Questions Cloud

Relationship between regular call and binary call option : Produce a formula for valuing a cliquet option where an amount Q is invested to produce a payoff at the end of n periods. The return earned each period is the greater of the return on an index (excluding dividends) and zero.

Is dobermania labor abundant-is dobermania land-abundant : The country of Dobermania has 20 units of labor and 3 units of land, while Malta has 80 units of labor and 7 units of land. Is Dobermania labor abundant? Is Dobermania land-abundant? If wheat is land-intensive and cloth is labor-intensive, what is th..

Explain the codification system for legislation : From the e-Activity, compare and contrast the public and private laws that you reviewed. Determine the extent to which each law is based on common law principles. Provide a rationale for your response, and review one (1) public law and (1) private..

What is the kinetic energy of the aircraft : An aircraft with a weight of 8387 N accelerates from 0 to 100 m/s in 7.9 seconds, at which time the aircraft launches. What is the kinetic energy of the aircraft when the aircraft launches?

Determine equilibrium price and quantiy-consumer surplus : Determine the equilibrium price and quantiy. Calculate consumer surplus. determine the new equilibrium. How have equilibrium price and quantiy changed? calculate new consumer surplus. Are consumers better off or worse off after the shock?

Improve the maneuverability of military fighter aircraft : By how much is the thrust (force along the centerline of the aircraft) reduced for the case indicated compared to normal flight when the exhaust is parallel to the centerline?

What volatility should be used in black scholes merton : Suppose that the volatility of an asset will be 20% from month 0 to month 6, 22% from month 6 to month 12, and 24% from month 12 to month 24. What volatility should be used in Black-Scholes-Merton to value a 2-year option?

Ethics involves making judgments : Proponents of which ethical theory argue that every society has a different moral code that explains which acts are permitted or not?

Provide an argument for the success of the strategies : Provide an argument for the success of the strategies that a fast-food franchise has instituted. Submit your position by posting in the Unit two Debate forum under the for topic.

User Account

All Pages