What is the equilibrium market price the store will charge

Assignment Help Business Economics
Reference no: EM131009958

A grocery store in a small town has a supply curve for oranges that is given by the equation P=1/10Q+1. The store faces a weekly demand curve for oranges given by P=16-2/5Q where price is measured in dollars and quantity is measure in bags of oranges.

a) Plot the supply and demand curves on a scale diagram.

b) What is the equilibrium market price the store will charge and how many bags will consumers buy? What is the store’s revenue?

c) What is the Total Market Value of this market? How much is the consumer surplus?

d) Suppose the government added a tax of $1 per bag of oranges. How many bags will consumers now buy and how much will they pay?

Reference no: EM131009958

Assume that every individual within each class has income

Graph and label the Lorenz curve for a country in which 1/4 of the population earns 3/4 of the income, 1/2 of the population earns 1/10 of the income, and 1/4 of the populatio

Determine how to distribute ibm networks bonuses

IBM employs a network of expert analytics consultants for various projects. To help it determine how to distribute its bonuses, IBM wants to form groups of employees with si

What is slope of budget line and inter predation of slope

In a two year setting Rod has earnings of $ 8 000 this year and earnings of $ 25 , 0 00 next year. He can borrow or lend at an interest rate of 25%. Draw his budget line inclu

Determine how many ties the producer would supply

Using the data from the table below and a price of $21, Quantity (ties per day) 0 1 2 3 4 5 6 7 8 9 10 Total Cost $10 $17 $26 $37 $50 $65 $82 $101 $122 $145 $170 Determine how

Describe the deal model of critical thinking

Describe the DEAL Model of critical thinking - How is civic capacity intertwined with service-learning - Are there differences between service-learning and volunteering? If so

The venezuelan bolivar black market

This had instantly squeezed his margins as his costs had risen directly with the exchange rate. He could not find anyone to sell him dollars. His customers needed supplies and

Unlimited amount at the interest rate

A consumer receives income y in the current period, income y in the future period, and pays taxes t and t' in the current and future periods, respectively. The consumer can le

Find the tax rate and after tax income

Mr.A makes $50,000 a year and pays $10,000 in taxes. Ms.B makes $30,000 a year and pays $6,000 in taxes. Find the tax rate and after tax income for each of them. Identify what

Reviews

Write a Review

 
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