1. Suppose you are given the following information about the demand and supply of ahalf hour spa treatement:Q — 500— 5Р= -40 + 4P(a)demand curves. Make sure to label the axes, curves, and all important points.Find and label the equilibrium quantity Q* and market-clearing price P* for ahalf hour spa treatment.Use the information to create a diagram to represent the supply and(b,the demand for personal care and drastically changed the demand curve for spadays. One a “Bones" day, the demand for self care falls to:Unfortunately a tiktok trend of “Bones" or “No Bones" has infleuncedQD — 235 — 2.5РHowever, on a “No Bones" day, the demand increases to:QD = 1, 100 – 10PGiven the supply of half hour spa treatements, what price should the spa chargeon a "Bones" day and what price should the spa charge on a "No Bones" day?(c).prices that would happen in the case of a Bones or No Bones day. Because ofthat, the government wants the market price to always be the P* found in part(a). What size per unit tax and/or subsidy would need to be created to ensurethat P* would be the equilibrium price on a Bones day? What size per unittax and/or subsidy would need to be created to ensure that P* would be theequilibrium price on a No Bones day?The local government has become concerned with the fluctuation inWhat would a regulatory price of P = P* from part (a) do to the(d)market instead? (Note: two sentences are sufficient here, one for Bones and onefor No Bones days. You do not have to give #s, a written explanation would befine.)

Eqm is found in the market by the intersection of dd(demand) and ss(supply) curves.

1. Suppose you are given the following information about the demand and supply of a half hour spa treatement: Q — 500— 5Р Q$ = -40+4P (a) demand curves. Make sure to label the axes, curves, and all important points. Find and label the equilibrium quantity Q* and market-clearing price P* for a half hour spa treatment. Use the information to create a diagram to represent the supply and (b; the demand for personal care and drastically changed the demand curve for spa days. One a “Bones" day, the demand for self care falls to: Unfortunately a tiktok trend of “Bones" or “No Bones" has infleunced QD = 235 – 2.5P However, on a "No Bones" day, the demand increases to: QD = 1, 100 – 10P

1. Suppose you are given the following information about the demand and supply of a half hour spa treatement: Q — 500— 5Р Q$ = -40+4P (a) demand curves. Make sure to label the axes, curves, and all important points. Find and label the equilibrium quantity Q* and market-clearing price P* for a half hour spa treatment. Use the information to create a diagram to represent the supply and (b; the demand for personal care and drastically changed the demand curve for spa days. One a “Bones" day, the demand for self care falls to: Unfortunately a tiktok trend of “Bones" or “No Bones" has infleunced QD = 235 – 2.5P However, on a "No Bones" day, the demand increases to: QD = 1, 100 – 10P

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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