Reference no: EM131395772
Various beverages are sold by roving vendors at Rye Stadium, home of the Northport Yankees. Demand and supply of the product are both highly sensitive to changes in the weather. During hot summer months, demand for ice cold beverages grows rapidly. On the other hand, hot dry weather has an adverse effect on supply in that it taxes the stamina of the vendor carrying his or her goods up and down many flights of stairs. The only competition for this service is provided by the beverages that can be purchased at kiosks located throughout the stadium.
Demand and supply functions for ice-cold beverages per game are as follows:
QD = 20,000 - 20,000P + 7,500PK + 0.8Y + 500T (Demand)
QS = 1,000 + 12,000P - 900PL - 1,000PC - 200T (Supply)
Where P is the average price of ice-cold beverage ($ per beverage), PK is the average price of beverages sold at kiosks ($ per beverage), Y is disposable income per household for baseball fans, T is the average daily high temperature (degrees), PL is the average price of unskilled labor ($ per hour) and PC is the average cost of capital (in percent).
When quantity is expressed as a function of price, what are the ice-cold beverage demand and supply curves if P = $5, PK = $4, Y = $62,500, T = 80 degrees, PL = $10, and PC = 12%?
Calculate the surplus or shortage of ice-cold beverage when P = $4, $5, and $6.
Calculate the market equilibrium price-output combination.
|
Cash flows and a required return
: An investment has the following cash flows and a required return of 10%. Based on IRR, should this project be accepted? Why or why not?
|
|
What is the payback period
: A project has an initial cost of $6,500. The cash inflows are $900, $2,220, $3,300, and $4,400 over the next four years, respectively. What is the payback period? If the required payback period is 3, should the project be accepted using this cr..
|
|
Discuss about sociologic sciences interactive case study
: Associate what you have learned about the theories to this case studycomplete interactive case studies and be asked to associate what you have learned about theory in comparison to the case study and reflect on it.Each time you have completed a ca..
|
|
Discuss basic concepts of the experimental method
: The purpose of this assignment is to try to make the basic concepts of the experimental method intuitive by designing an experiment concerned with a common phenomenon. I want you to think about the concepts related to the psychological phenomenon..
|
|
Calculate the market equilibrium price-output combination
: Calculate the surplus or shortage of ice-cold beverage when P = $4, $5, and $6. Calculate the market equilibrium price-output combination.
|
|
Probability of occurring to any individual
: Consider an event which has a probability of occurring to any individual = 0.01 once each year, and never occurs twice in a year.. If this event occurs, it costs the person $100,000.
|
|
Construct theoretical definitions for energy and atom
: The following exercises involve constructing definitions:- Construct theoretical definitions for "energy" and "atom."
|
|
Familiarize yourself with various views and viewgroups
: The purpose of this assignment is to familiarize yourself with various Views and ViewGroups as well as familiarize yourself with MVP and Unit Testing.
|
|
Eliminate the pollution from the firm
: Assume there is a firm which produces a type of pollution which it would be willing to eliminate for $500. There are 3 households that live far away from each other but are the only ones affected by the pollution. These 3 households would be wi..
|