Creating market graphs and calculating equilibrium

Assignment Help Managerial Economics

Reference no: EM1371877

1. Rochester Metro Area was hit with a major ice storm in 2003. Suppose that before ice storm of 2003, the weekly demand and supply for ice in the Rochester Metro Area were given by the following equations:

Dpre: P = 100 - Q
Spre: S = 5 + 0.5Q

a. Draw a graph representing the Rochester ice market before the storm, and label it carefully. What was the equilibrium price for the Rochester ice market before the storm? What was the total quantity of ice traded?

b. As a result of the ice storm, electricity went out in the Rochester area. The demand for ice increased due to the lack of electricity to power refrigerators. The lack of power also caused the supply to decrease. Ice producers were still able to produce some ice using electric generators. Other ice had to be imported from other areas with power. The relevant post storm equations are the following:

Dpost: P = 110 - Q
Spost: P = 10 + 2Q

Draw a graph representing the Rochester ice market after the storm, and label it carefully. What is the new equilibrium price? What is the quantity?

Reference no: EM1371877

Questions Cloud

Determining productivity and costs : Can you please provide me an example of the company that has made a strategic decision based on productivity and costs.

Write method to display the number by adding hundred : displayItTimesTwo(), and displayItPlusOneHundred(). Write each method to perform the task its name implies. Save the application as TestMethods.java.

Calculate the expected stock price and standard deviation : Assume that a stock price has an expected return of 16% per year and a volatility of 30% per year. When the stock price at the end of a certain day is $50,

Find the equilibrium price and the equilibrium quantity : What is the solution to the firm's long-run cost-minimization problem given that the firm wants to produce Q units of output and long-run competitive equilibrium, how much output will each firm produce

Creating market graphs and calculating equilibrium : Rochester Metro Area was hit with a major ice storm in 2003. Suppose that before ice storm of 2003, the weekly demand and supply for ice in the Rochester Metro Area were given by following equations:

Find levels resulting tree have if key compression is used : How many levels would resulting tree have if key compression is used and it decreases the average size of each key in the entry to 10 bytes?

Correlation in amount of friction in economy demand & supply : Make some research on a topic known to economists as 'friction-free' or 'low-friction' economy. Early writers on this topic foresaw many of the seismic shifts that have occurred in the market place over last one to 2-decades.

Determine size of one minute mono audio file : Digital audio transducer samples real sound at the rate of 40 kHz and assigns 8 bits to each sample. Determine the size of one minute mono audio file?

Operating and production costs analysis : Two small airlines provide shuttle service between Las Vegas and Reno. The services are alike in every respect except that Fly Right bought its airplane for $500,000, while Fly by Night rents its plane for $30,000 per year. Analyze fixed costs, Ma..

User Account

All Pages