Suppose that the quantity supplied by the four firms

Assignment Help Business Management
Reference no: EM131981724

Four firms have roughly equal shares of the market for farm-raised catfish. The price elasticity of demand for the market as a whole is estimated at 1.5.

a. If all firms raised their prices by 5 percent, by how much would total demand fall?

b. What is the price elasticity if a single firm raises its price (with other firms' prices unchanged? Hint: Use the expression for elasticity in equation 3.8b, EP (dQ/dP)(P/Q), and note that the individual firm's output Q1 is only one-quarter as large as total output Q.

c. Suppose that the quantity supplied by the four firms is forecast to increase by 9 percent. Assuming that the demand curve for catfish is not expected to change, what is your forecast for the change in market price (i.e., what percentage price drop will be needed to absorb the increased supply)?

Reference no: EM131981724

Questions Cloud

Confidence interval for the average number of minutes : A study of 50 professors showed that the average time they spent creating test questions was 17.5 minutes per question. The standard deviation of the population
Write a strategic human resource management plan : The purpose of this assignment is to simulate the thought process managers use to connect unit goals with organizational strategy.
Fit a regression line to the data : Use the following data in MS Excel to construct a scatter graph and then fit a regression line to the data.
Ethical responsibility to contribute to economic growth : Do governments and companies in developed countries have an ethical responsibility to contribute to economic growth and social development in developing.
Suppose that the quantity supplied by the four firms : Suppose that the quantity supplied by the four firms is forecast to increase by 9 percent. Assuming that the demand curve for catfish is not expected to change
Marginal productivities cannot be compared : The President of the United States receives an annual salary of $400,000. Aaron Judge, outfielder for the New York Yankees and the American League Rookie
What should the leader have done differently : Are there any warnings in your text or other readings where they mention that this type of problem might occur with a participative approach?
What are the equilibrium price and quantity now : Assume that the income changed from Y= 10 to Y= 7. What are the equilibrium price and quantity now
Why would the others factors have lesser effects : Which cultural factors have the greatest effect upon the operations of an international logistics firm? Why those? Why would others factors have lesser effects

Reviews

Write a Review

Business Management Questions & Answers

  Secondary and tertiary movement

Select one scene from the film Taxi Driver (1976) and describe that scene's use of primary, secondary and tertiary movement.

  Effectiveness of the new program determined

How could company policies or operating procedures harmonize with the new program. How was the effectiveness of the new program determined. How were rewards or incentives used to promote the new program.

  Organisational performance

managerial leadership behaviour, importance of organisational culture for effectual organisational performance, formal and the informal organisation, motivation for staff to work well

  What is the probability that the first gap

(a) What is the probability that the first gap is not an acceptable one? (b) What is the probability that the first two gaps are both unacceptable?

  What is the stock worth today

The company's last dividend was $3.25, and it is unlikely to change the amount paid out. If the required rate of return is 12 percent, what is the stock worth today? (Round to the nearest dollar.)

  Determine motivation in organizations

What are three major characteristics that determine motivation in organizations? What are some of the variables within each?

  How an existing organization satisfies customer requirements

Using the house of quality, pick a real product and analyze how an existing organization satisfies customer requirements.

  What are the premise(s) in the article

Prepare a PowerPoint Presentationthat presents your analysis examining the critical thinking elements of the argument. Your presentation should address, at minimum, the following:   Citation of the article and a brief summary of its contents What are..

  Optimal replacement interval for the industrial engine

Compute the results for at least 250 replications. What is the optimal replacement interval for the industrial engine?

  Walter has a job that allows him to work on projects

Walter has a job that allows him to work on his projects at his own pace and in his own way. He does not have his boss looking over his shoulder.

  Determine upper and lower control limits

For a variable control a circuit voltage will be examined on a sample of only 5-circuits. The last average voltage for sample size five has been 3.1 volt, and the range has ben 1.2 volts.

  Discuss the importance of conducting a needs assessment

Discuss the importance of conducting a needs assessment. Create a stakeholder strategy for the program. Include the measures and outcomes to be evaluated.

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