User Account

All Pages

How many cars will be produced at the new equilibrium price

Assignment Help Microeconomics
Reference no: EM131201215

FINDING THE EQUILIBRIUM POINT

At the beginning of 2005, Toyota sold 175,000 vehicles. Based on the company's analysis of the small car market, the company believed that $16,000 was the equilibrium price based on the following supply and schedules.

Price Amount Supplied Amount Demanded
$12,000 145,000 215,000
$14,000 160,000 195,000
$16,000 175,000 175,000
$18,000 190,000 160,000
$20,000 205,000 150,000
$22,000 220,000 135,000

As the price of gasoline rose through the summer and fall of 2005, Toyota revised its estimate of the amount of product demanded. At each of the above price points, they estimate that consumers will purchase 30,000 more autos. For instance, at $16,000, now 205,000 cars will be sold. The price/amount supplied relationship remains the same.

1. Describe what has happened to the supply and demand curves for Toyota automobiles.

2. What is the new equilibrium price?

3. How many cars will be produced at the new equilibrium price?

Reference no: EM131201215

Questions Cloud

What tax advantage does the series ee bond offer : A Series EE U.S. government savings bond accrues 3.5% interest each year.- What tax advantage does the Series EE bond offer that is not available with the bank deposit?
Real wage of the workers in the two countries : Show that the United States is better off under trade compared to Autarky with the aid of indifference curves. Show the amount the United States will export and import. What would be the real wage of the workers in the two countries?
Member of the project approval committee : Imagine you are a member of the project approval committee.- With a wink, he promises to "owe you one." What would you say to him and why?
What is the overall speedup : If a kernel of an algorithm is accelerated by a factor of 100, and the kernel accounts for 90% of execution time before acceleration, what is the overall speedup?
How many cars will be produced at the new equilibrium price : Describe what has happened to the supply and demand curves for Toyota automobiles. What is the new equilibrium price? How many cars will be produced at the new equilibrium price?
What speedup for the kernel would be required : For a kernel that consumes 90% of execution time, what speedup for the kernel would be required to achieve an overall speedup of 5?
Checker services in center for writing excellence : As a newly hired Staff I, you are for analyzing the work papers for one the clients of your organization. Your client not clear about why you are for information on the following topics:
Inelastic demand simply means : Consumers tend to remember information inputs that support their feelings and beliefs and forget inputs that do not. This is known as selective.
Do you think reduction of taxes by government actually helps : Do you think a reduction of taxes by the government actually helps to increase spending and production in the economy or do you think it only increases savings?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd