Economics, Business Economics

Quantitative demand for watermelons = 50-3P(wm) - 20P(hd) + 10 P(sc) + 0.001(income)
P(wm) = $4.00
P(hd) = $3.00
P(sc) = $2.00
Income = $40,000

Quantity supply of watermelons = 22 + 4P(wm)


A) What is the quantitative effect of a 5% demand shock in the watermelon market? Determine the effect on price, quantity demanded, and quantity supplied of watermelon.




B) Now consider a simultaneous supply shock in the watermelon market of -10% due to an extreme drought. This supply shock occurs at the same time as the 5% demand shock. Determine the effect on price, quantity demanded, and quantity supplied of watermelon.
Posted Date: 9/21/2012 1:46:30 AM | Location : United States







Related Discussions:- Economics, Assignment Help, Ask Question on Economics, Get Answer, Expert's Help, Economics Discussions

Write discussion on Economics
Your posts are moderated
Related Questions
Consider another company, Lateco, which has just received its fifth round of investment.  These rounds have been: Series A: CP ($5M FV) or converts to 5M shares of common. Se

A sample of 58 mutual funds was taken and the mean return in the sample was 14% with a standard deviation of 9.3%. The return on a particular index of stocks (against which the mut

Scheduling a project includes understanding the degree to a project tasks can be separation. Define the meaning of this term and what effect does partitioning have onto the schedul

You are dissatisfied along with the common level of presentation of one of your team. The quality of work is below your hopes. How will you deal along with this? You could take

what microevrionmental factors have affected Sony''s performance since 2000

You are evaluating a project that has the following cash flows: -100 today, then cash inflows of 20, 30, and 40 for the next three years, respectively, and thereafter cash flows gr

Is population growth a problem? Quick population growth is a main cause of poverty and arises where population growth go beyond the rate of economic growth. Standards of liv

The Scenario You have just been appointed as the procurement consultant for a large multinational with operations based in Brisbane. Your superior, the Chief Financial Officer (

Provisionally the new software is called SafeCus with two projected levels of service - Premier and Standard. The Premier Level could be on sale within a year and will provide b

I thought I was getting an automatic answer