Identify the demand function and the supply function

Assignment Help Business Economics
Reference no: EM13891963

The market for grapes is given by the following supply and demand equations: Q = 120 – 15P Q = 20 + 5P a. Identify the demand function and the supply function. b. Compute for the equilibrium P* and Q* (Q*, P*). c. Compute the PED at (Q*,P*) AND the PES at (Q*,P*).

Reference no: EM13891963

Questions Cloud

Historical returns on balanced portfolio : The historical returns on a balanced portfolio have had an average return of 8% and a standard deviation of 12%. Assume that returns on this portfolio follow a normal distribution. Use the empirical rule for normal distributions to answer the followi..
What will be the total output of his shrimp business : Bubba is a shrimp fisherman who can catch 4,000 pounds of shrimp per year. Bubba is considering hiring his cousin Bobby to work for him. Bobby can catch 3,000 pounds of shrimp per year. If Bubba hires Bobby, what will be the total output of his shrim..
Prot of the domestic rm and the prot of one foreign rm : Consider a country, called Home, with one domestic rm competing with n foreign rms. Write the prot functions for one domestic and for one foreign rm. If all these rms compete in quantity (Cournot competition), derive the equilibrium quantity produced..
What are the variable and fixed costs : Explain what the quote, “Too many cooks spoil the pot” has to do with the law of diminishing marginal returns. In the context of a restaurant operation, what are the variable and fixed costs?
Identify the demand function and the supply function : The market for grapes is given by the following supply and demand equations: Q = 120 – 15P Q = 20 + 5P a. Identify the demand function and the supply function. b. Compute for the equilibrium P* and Q* (Q*, P*). c. Compute the PED at (Q*,P*) AND the P..
Explaining how they can engender monopoly situation : In a pure monopoly, the monopolistic firm is the only one selling the product, therefore there are no constraints on what the firm can charge or on the profit it can make. Do you agree? Why? Discuss various barriers to entry into an industry, explain..
Donut sales are derived from the drive-through window : You are the manager of Dunkin Donuts. Almost all of your donut sales are derived from the drive-through window. You know from experience that coffee is a complement for your donuts. The morning newspaper says that a major storm has just destroyed 50 ..
What is the equilibrium real GDP : An economy has a consumption function of C = 400 + .75(DI) The following values are fixed : G , T = 1000 NX = 50 I = 750 Suppose that the CPI ( i.e., the "Price Level") is currently equal to 115. What is the equilibrium real GDP (on the demand side)?
Global reduces its dividends paid : Consider the following potential events that might have taken place at Global Con- glomerate on December 27, 2012. For each one, indicate which line items in Global's cash flow statement would be affected and by how much. Global reduces its dividends..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Either plant or market/consume his crop

Consider a farmer who can either plant or market/consume his crop. Whatever amount he plants becomes a crop twice the size the following year. For example, if he plants seed from 2 ears of corn, he gets 4 ears of corn at harvest. Assume he starts off..

  Considering purchasing a savings bond

You are considering purchasing a savings bond that will pay $100 in five years. The market interest rate currently is 3% per year. What should you be willing to pay to purchase this bond today? Suppose the interest rate goes up next year, to 4% per y..

  An you suggest how his statement could be modified

Based on your answer in a and b, how can you reconcile the President's statement with economics? Can you suggest how his statement could be modified to be consistent with teh IS-LM model?

  Qthe availability of investment capital is critical for a

q.the availability of investment capital is critical for a market economy to grow. explain how this investment capital

  Decrease in demand is represented

Decrease in demand is represented by a

  Explain how does the price elasticity of demand for corn

Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil.

  Marginal cost of abatement is for the firm

Assume that after the exchange of one permit, the marginal cost of abatement is for the firm that sold the permit for $170 also the marginal cost of the firm

  When customer anticipated

Consider a perfectly competitive market with many homogenous exercise gyms. Exercise gyms have learned that customers tend to use the gym less often than the customer anticipated when she signed up.

  Market supply of labour considering the graphs

Show on a graph the market supply of labour considering the graphs of willingness to work and ability to work? and what happens to the labour supply when the willingness to work and ability to work changes?

  Sells price-elastic products or price-inelastic products

Why do governments raise taxes on cigarettes and alcohol to raise government revenues? What changes do you make to your demand for gasoline when the prices start to climb up? Would you want to own a business that sells price-elastic products or price..

  Qat a recent board meeting ceo and president got into a

q.at a recent board meeting ceo and president got into a heated argument about whether to shut down the firms plant in

  Compare the two cases and summarize the effect

Compare the two cases and summarize the effect of collateralization on the other terms of the loan. Does it increase or decrease the welfare of the borrower and the lender.

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