Equilibrium price of hoods to the truck manufacturer

Assignment Help Business Economics
Reference no: EM139534

Q. Midcontinent Plastics makes 80 fiberglass truck hoods every day for large truck manufacturers. Each hood sells for $500.00. Midcontinent sells its entire product to the large truck manufacturers. If the own price elasticity of demand for hoods is -0.4 also the price elasticity of supply is 1.5.

a. Compute the supply also demand for truck hoods.

b. If the local county government imposed a every unit tax of $25.00 every hood manufactured, Illustrate what would be the new equilibrium price of hoods to the truck manufacturer?

c. Would a every unit tax on hoods change the revenue received by Midcontinent?

Reference no: EM139534

Questions Cloud

What is the prevailing price of oil at this level : Illustrate what is OPEC's optimal level of production? Illustrate what is the prevailing price of oil at this level.
Risk premium it charges on its loans : The risk premium it charges on its loans is classified as profits in economics.
Household receives a grant : Assume a household receives a grant of $500 of food stamps every month. How will this household's budget line be affected.
Constant term if the equation for the demand curve : Illustrate what is the constant term if the equation for the demand curve is written in the form.
Equilibrium price of hoods to the truck manufacturer : Illustrate what would be the new equilibrium price of hoods to the truck manufacturer.
Determine the price elasticity of demand : Determine the price elasticity of demand at each quantity demanded using the arc or midpoint formula.
Concept of technological efficiency permit : Does the concept of technological efficiency permit us to determine at which point on an isoquant a firm should operate.
Change if boc could issue sfr commercial paper supported : Would your answer change if BOC could issue SFr commercial paper supported by the revolving credit at 3.5%.
Aggregate accounting enable us to measure : Does aggregate accounting enable us to measure also analyze how much a nation is producing also consuming.

Reviews

Write a Review

Business Economics Questions & Answers

  Describes the essential functions of banks

Brenda Johnson has used a preprinted form that she got from the internet to create her will.

  Elucidate what type of returns to scale

Elucidate what type of returns to scale does this technology represent.

  Value management different from financial accounting

Why is monitoring and controlling the project cost important for the success of the project.

  Congresswoman gaga represents a state

Congresswoman Gaga represents a state in which several firms fabricate furniture. She needs to impose tariffs on all imported furniture.

  Affect household spending on goods and services

Illustrate how do you think this would affect household spending on goods and services.

  What would happen to the amount of economic investment

What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low.

  Salmon industry to calculate the forecast

How will you consider the structure of the fresh salmon industry to calculate the forecast. Will you advise the firm to enter the industry.

  Engineers income generation

Give a detailed explanation about how the engineer's income generation as described above affects GDP and GNP of U.S.

  Seats should be protected for full-fare passengers

Explain how many seats should be protected for full-fare passengers.

  Federal reserve had maintained a constant money

If the Federal Reserve had maintained a constant money supply in the face of this change, what would have happened to the interest rate.

  Idea that a country can simultaneously pursue

Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.

  Monetary policy or fiscal policy

Defend your use of either monetary policy or fiscal policy to do this.

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