Find the price-quantity and price elasticity of demand

Assignment Help Macroeconomics
Reference no: EM1315570

The Wozniak Corporation, a maker of aircraft engines, determines that in 2008 the demand curve for its product is as follows:

P = 2,000 - 50Q

Where P is the price (in dollars) of an engine, and Q is the number of engines sold per month

a) To sell 20 engines per month, what price would Wozniak Corporation have to charge?

b) If it sets a price of $500, how many engines will Wozniak sell per month?

c) What is the price elasticity of demand if price equals $500?

d) At what price, if any, will the demand for Wozniak's engines be of unitary elastic?

Reference no: EM1315570

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Application of nash equilibrium and game theory

Application of Nash Equilibrium and Game Theory with examples

  Effect of monetary policy on usd

Now, assume the ECB also employs comparably aggressive policy. Copy your results from the left graph and show on the right graph how the ECB could affect the USD/EUR exchange rate.

  Reason behind the increase in price

Why the price of computers dropped as their power and features has have increased?

  Canadian inflation and money supply growth

In the 1970s people had become accustomed to high inflation. In 1979, Bank of Canada decided to fight inflation and decreased the money supply growth rates.

  Average consumer prices and new economic policy

Prepare a table/graph for inflation in "your country" (use North Korea for the country; if no data is available, use India) for about the latest ten year period for which you have data.

  Computing economic cost

What is your economic cost of buying a ticket? What is your economic cost of attending the game (once you already bought the ticket)?

  Pegging rate of exchange of yuan in terms of us dollar

Assume that the Bank of China wishes to peg the rate of exchange of its currency, the yuan, in terms of the US dollar. In each of the following situations, should it add or subtract from its dollar foreign exchange reserves? Why?

  Given the marginal cost and marginal revenue

For the product shown, assume that the minimum point of each firm's average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the equilibrium price and quantity.

  Human service interactions in terms of macro systems

Human service interactions in terms of macro systems-communities and organizations. Empowerment is basically a process to assist people groups, families and communities, individuals, to use their strengths to overcome their challenges.

  Application of heckscher

Which country is capital abundant according to the Heckscher-Ohlin theorem? Given your answer to (a), draw the PPF for Canada. Also draw the indifference curve and the relative price line for the no-trade equilibrium.

  Cross exchange rate between currencies

What was the cross-exchange rate between the Real and the Peso in 2001? Real____/Peso. What was cross-exchage rate between Real and Peso in 2002? Real_____/Peso.

  Equilibrium price and output in short run and long run

Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?

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