2. The demand and supply functions of shirts are given by; Demand function: P = 50 - 1.5Q Supply function: P = 22 + 2Q Using the information above; Analyse the introduction of price maximum of GH¢15 on shirt in the market ii. Calculate the profit made by black marketers if black market operated in this market as a result of the introduction of price maximum of GH¢15 in the market

2. The demand and supply functions of shirts are given by; Demand function: P = 50 - 1.5Q Supply function: P = 22 + 2Q Using the information above; Analyse the introduction of price maximum of GH¢15 on shirt in the market ii. Calculate the profit made by black marketers if black market operated in this market as a result of the introduction of price maximum of GH¢15 in the market

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Building. They want to maximize total revenue, but the number of jerseys available is a constraint. Here are the two demand equations, where the Q's are the jerseys to be sold in each location: Cone Center Demand: Pc = 240 - 6Qc Friday Building Demand: = 400 - 3QF The total number of jerseys (Q) available is 30. PF What quantity of jerseys should be allocated to the Friday Building? Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER (CAN'T SELL A PARTIAL JERSEY). ☆
First suppose the market demand for “cougar caps” is given by the equation: Q = a1 + a2 * P - a3 * P2 + a4*I where P is the price of cougar caps, I is income, Q is quantity of cougar caps and a1, a2, a3, a4 are positive constants. What is the price elasticity of demand? What conditions need to hold for this to be an elastic demand? An inelastic demand? What is the income elasticity? What conditions are needed for this to be a normal good ? Inferior?
Above is the demand schedule for tickets to a Carnegie Hall performance of the Grateful Dead. Carnegie Hall seats 1,800 people. What is the equilibrium price and quantity for a concert of the Grateful Dead at Carnegie Hall? If tickets were sold for $18, what would happen (be specific)?
11. Calculating the price elasticity of supply Carlos is a stay-at-home parent who lives in Chicago and teaches tennis lessons for extra cash. At a wage of $50 per hour, he is willing to teach 7 hours per week. At $65 per hour, he is willing to teach 10 hours per week. Using the midpoint method, the elasticity of Carlos's labor supply between the wages of $50 and $65 per hour is approximately that Carlos's supply of labor over this wage range is which means
Which of the following is not a function of elasticity in the real world? O It gives a signal to the producers if there is an incentive for price changes in any area. It is an indicator of the possible changes in prices of a customer, given a demand in an area. O It is an indicator of the product-market fit of a specific product or service, as indicated in the income of an area overtime. O It is an indicator of the possible changes in producer's changes in supply in an area given price changes.
What are the respective price elasticities of supply at A and B on the supply curve shown in the figure below? Supply Price 10 9 8 7 6 5 4 3 2 1 0 3 6 9 B S 12 15 18 21 Quantity Instruction: Simplify and enter your responses as ratios. For instance, a ratio of 12/20 should be changed to 3/5. Elasticity of supply at point A: Elasticity of supply at point B:
Please helo me with this question There are 50 residents that live in a small town in California. Each resident uses electricity and there is one power station that produces electricity for the residents from coal. Each residents' demand for electricity is Q = 10 - 2P and the supply function for the power plant is Q = 150P. For each unit of electricity that the power station produces, there is a corresponding release of pollution that leads to asthma and other health problems for the 50 residents. The marginal damage of each unit of electricity produced, per person, is $.05. a. What is the market equilibrium price and quantity per unit of electricity? b. What is the efficient Pigouvian tax per unit of pollution? c. The government of this small California town decides to impose the efficient Pigouvian per unit tax on the power station. What is the new social optimum price and quantity per unit of electricity? d. What is the government tax revenue? e. What is the gain in total…
urgentttttttt