Inhabitants of the city , Managerial Economics

The city of Cabernet is very popular for its production of wine. The inhabitants of the city have an aggregate demand for wine that can be described as follows:

2105_aa.png


where Qd is the demanded quantity in bottles of wine and p is the price in euros per bottle. The producers' aggregate supply is:

2490_aa.png


whereQs is the supplied quantity in bottles of wine. The city makes only one quality of wine.
a) Search the equilibrium price and quantity.

b)  Compute the consumer and producer surplus, as well as the total welfare in the city of Cabernet. 

 

 

Posted Date: 3/26/2013 2:40:44 AM | Location : United States







Related Discussions:- Inhabitants of the city , Assignment Help, Ask Question on Inhabitants of the city , Get Answer, Expert's Help, Inhabitants of the city Discussions

Write discussion on Inhabitants of the city
Your posts are moderated
Related Questions
explain the supply function and importance of supply analysis in brief

ISOQUANT ANALYSIS In the long run it is possible for a firm to produce the same output using different combinations of two factors of production.  For instance it the two fact

Question 1: "Anyone who is willing to learn the language of economics and take the time to practice making decisions can learn to be an effective manager." Explain how. Qu

EFFICIENCY-WAGE THEORIES OF UNEMPLOYMENT   Efficiency wage  theories are clearly non-Walrasian theories in as much as they postulate  payment of  wages that  are  higher than m

A risk-neutral agent's working life has two periods. In each period, the agent can provide high effort (at personal cost $2,000) or low effort (at zero personal cost). In a given p

Write on one theory of profit. Profit as rent of ability: one of the most widely known theories of profit was propounded by F.A. Walker. According to him profit is the rent of is t

Suppose that the price elasticity of demand for cereal is -0.75 and the cross-price elasticity of demand between cereal and the price of milk is -0.9. If the price of milk rises by


Market Structures This refers to the nature and degree of competition within a particular market.  Capitalist economies are characterised by a large range of different market

THE KEYNESIAN THEORY OF CONSUMPTION FUNCTION The theory was developed during the Great Depression which plagued Europe and America.  During this time, there was excess capacit