User Account

All Pages

Supply and demand curves in market are described

Assignment Help Business Economics
Reference no: EM131240540

Assume that the supply and demand curves in a market are described by the following equations. Supply: P = 5+5 · QS Demand: P = 86

1. Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the price (P) on the vertical axis. You may use quantities four (Q = 4) through twenty (Q = 15) by units of one (1) for your graph.

2. What is the quantity supplied (QS) at P = $35?

3. What is the surplus or shortage when P = $70?

4. What is the price and quantity equilibrium (Pe and Qe) in this market?

Assume that you have a budget of $30 to spend on milk and cereal only. The price of milk is PM = $5 and the price of cereal is PC = $3.50.

1. Graph the budget constraint. Be sure to put the quantity of milk (QM) on the horizontal axis.

2. What is the most you can purchase of cereal?

3. If you purchase 3 units of milk (QM = 3), then how many units of cereal can you purchase at most?

4. What is the slope of the budget constraint? (Note: it is important that you answer Question 2.1 correctly and put QM on the horizontal axis.)

5. What is the opportunity cost of 1 unit of cereal?

Reference no: EM131240540

Questions Cloud

One of the criticisms of fiscal policy : Which of the following is not one of the criticisms of fiscal policy?
What is the income elasticity of demand for coffee : INCOME QUANTITY PURCHASED Automobiles Coffee Tea $45,000 4 8 5 $30,000 2 10 10 Refer to table above. What is the income elasticity of demand for coffee?
Company is contemplating bidding on request for proposal : Your company is contemplating bidding on an RFP (Request For Proposal) for 100,000 units of a specialized part. Why might the amount be more than the requesting company actually wants?
What is offshoring jobs : What is offshoring jobs? Does offshoring affect all sectors of the economy equally? To what extent has offshoring been responsible for the slow growth in job creation after the financial crisis of 2007/8?
Supply and demand curves in market are described : Assume that the supply and demand curves in a market are described by the following equations. Supply: P = 5+5 · QS Demand: P = 86. Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the pric..
Discount rate and increase in level of aggregate output : An increase in the discount rate and an increase in the level of aggregate output will have what effect on the equilibrium interest rate?
An excess demand for money in the money market causes : An excess demand for money in the money market causes. Which of the following pairs of events will definitely lead to an increase in the equilibrium interest rate?
Monopsonist faces labor supply curve : A monopsonist faces a labor supply curve given by Ls = −300 + 0.01ω , where ω is the annual salary. In general, the marginal cost of hiring additional labour for this firm is given by MFCL = 29,900 + 200L. If the firm’s labour demand curve is given b..
Plot the consumption bundle and the indifference curve : Levi's preferences are defined over left shoes and right shoes (xL , xR). Write down a plausible utility function for his preferences. Plot the consumption bundle (3,2) and the indifference curve on which it resides. What is Levi's Marginal Rate of S..

Reviews

Write a Review

Business Economics Questions & Answers

  The deadweight loss from the new tax

Suppose a tax of $.10 per unit on a good creates a deadweight loss of $100. If the tax is increased to $0.30 per unit, the deadweight loss from the new tax would be:

  Determine the rate of return of on investment

The cost of a water jet machine to be used for slicing cheese is $45,640. The machine will generate net annual income of $10,000 during its useful life of 7 years. Determine the rate of return of on investment in this machine. Express the answer as a..

  Efficiency refers to whether market outcome is fair

Efficiency refers to whether a market outcome is fair, whereas equality refers to whether the maximum amount of output was produced from a given number of inputs. When a good is taxed, the tax revenue collected by the government equals the decrease i..

  Level of competition in an industry increases

As the level of competition in an industry increases, the price-cost margin approaches:

  Define each of the two types of interference

Explain what type of labour market interference is most often experienced by men and which type is most often experienced by women. Make sure you define each of the two types of interference.

  The short-term nominal interest rates

Suppose the current money supply is $6,000. The required reserve ratio is 0.2. The Fed wants to increase the money supply by $600. Determine the following: All underlying work must be shown. What open market operation the Fed would have to take to ac..

  If there is a permanent adverse supply shock

If there is a permanent adverse supply shock

  Skin deep site to search for some personal care products

Use the Skin Deep site to search for some personal care products that you use. Elucidate how do they rate.

  Decide to make annual deposits into a savings account

Suppose that the parents of a young child decide to make annual deposits into a savings account, with the first deposit being made on the child’s 5th birthday and the last deposit being made on the 15th birthday. Then, starting on the child’s 18th bi..

  Which one of these best describes a factor market

Which one of these best describes a factor market? Who is the merchant/seller in a factor market?

  Contrast the economic and social roles

Contrast the economic and social roles of people who labor under slavery, feudalism and capitalism and explain how ideology legitimated those roles.

  The absolute value of the elasticity of the demand

Now suppose that the city doubles the fee from $8 to $16. Let's determine what effect this will have on revenue for the city. To be conservative, let's assume that the absolute value of the elasticity of the demand for car trips in central London is ..

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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