20 18 16 14 12 sippy 10 Dem ad 10 30 50 20 10 70 80 90 Suppose that the supply of widgets is perfectly elastic at a price of 10. Demand is as depicted above. What is the producer's surplus at the equilibrium price? a. 500 b. infinite C. O d. 250 DO
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- 1. Optimal choice of capital Eleanor makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 60 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Eleanor's sweater business is a perfectly competitive firm. Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom. Quantity of Input (Looms) Output (Sweaters per year) MPP of Each Loom (Sweaters) MRP of Each Loom (Dollars) 0 1 2 3 4 5 60 110 150 184 213 238 50 40 34 29 25 If the rental price of a loom is $270 per year, Eleanor should use 500 400 340 290 250 Suppose the demand for sweaters is very elastic, while the demand for cigarettes is very…B. The supply of zucchini is very elastic in the short run. Draw a diagram that shows how the equilibrium price and quantity change as demand changes due to a food safety scare affecting yellow squashFigure 5-6 13 10 D 6 4 3 Supply 100 200 325 400 450 500 Refer to Figure 5-6. Using the midpoint method, what is the price elasticity of supply between points A and B? 0.1 0.43 2.33 1.0
- l Fido ? 4:21 PM 98% D AA ezto.mheducation.com E COnnect cancel print 8. Award: 5.00 points Problem 6-3 (Algo) Suppose that the total revenue received by a company selling basketballs is $960 when the price is set at $30 per basketball and $960 when the price is set at $20 per basketball. Without using the midpoint formula, can you tell whether demand is elastic, inelastic, or unit-elastic over this price range? Demand is (Click to select) over this range. References Multiple Choice Problem 6-3 (Algo) Leaming Objective: 06-02 Explain the usefulness of the total-revenue test for price elasticity of demand.PRICE (Dollars per unit) 350 225 175 50 0 12 +--- Region Between X and Y Between W and X Between Y and Z Z True False 42 54 QUANTITY (Units) For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elas elastic, or inelastic. 84 W Demand - Elastic Inelastic Unit Elastic True or False: The slope of the demand curve is equal to the value of the price elasticity of demand.he quantity demanded each month of Russo Espresso Makers is 250 when the unit price is $136. The quantity demanded ach month is 1000 when the unit price is $106. The suppliers will market 750 espresso makers when the unit price is $80 er higher. At a unit price of $100, they are willing to market 2250 units. Both the supply and demand equations are known o be linear. (a) Find the demand equation. -1 -x + 146 25 p = (b) Find the supply equation. 1 x+ 70 p = 75* (c) Find the equilibrium quantity and the equilibrium price. |× units
- 15. Suppose a new law makes illegal the sale of a good that had been legal. This wi a. Decrease consumer surplus c. Increase producer surplus b. Increase consumer surplus d. Eliminate dead weight loss hout tho way firms behave is that theyRetail Demand: Q = 16 - Pr Farm Supply: Q = 2 + .5Pf Marketing cost per unit: $5 Draw a graph of the market showing all relevant curves and functions on graph paper. 3. What is the equilibrium quantity? What is the farm price at this quantity? What is the retail price at this quantity? 4. What is the retail elasticity of demand at the market equilibrium? 5. What is the farm-level elasticity of demand at the market equilibrium?1. Jeff Jones at Ice ‘n Carry ('InC') Coolers reduced the price of InC coolers by $10 from the usual $40. Weekly sales increased from 10 to 20 InC Coolers per week. a. What is the arc price elasticity of demand? b. Jeff is considering a further price reduction. What would be the effect of the reduction on revenues? How about profits? Revenues: Profits: Increase/ Decrease / Can't tell Increase/ Decrease / Can't tell
- How do technologies affect changes in both supply and demand? Cite an example. Do you agree that government intervention in the market can overcome market failure? Explain your answer and cite examples. PRICE ELASTICITY: Given the quantity demanded and price for chicken, compute and determine if the elasticity of the commodity and the decision of the firm. POINT PRICE QUANTITY DEMANDED FOR CHICKEN A 100 10 B 90 20 INCOME ELASTICITY: Given the quantity demanded and price for chicken, compute and determine if the elasticity of the commodity and the decision of the firm. POINT INCOME QUANTITY DEMANDED FOR CHICKEN IN KILO A 20,000 8 B 25,000 10 CROSS ELASTICITY: Given the quantity demanded and prices for commodities below, compute and determine if the goods are either substitutes or complements. GOOD QD1 QD2 P1 P2 COFFEE 4 7 8 6 TEA 5 3 7 9 GOOD QD1 QD2 P1 P2 JUICE 8 9 10 11 SOFTDRINK 6 7 9 12Help me pleaseee Assuming that a few firms control gasoline supply and talk to each other to reduce supply, what happens to price and their total revenue? Graph and explain.The price of the commodity is P4/unit. Complete the table below Note: The table has already been answered and the three sub-parts. ONLY NO. 4 AND 5 HAVE LEFT UNANSWERED Q Demand Supply TR TFC TVC TC AVC AFC AC MR MC Profit 0 100 0 0 100 0 100 -100 10 90 10 40 100 40 140 4 10 14 4 4 -100 20 80 20 80 100 55 155 2.75 5 7.75 4 1.5 -75 30 70 30 120 100 67 167 2.23 3.33 5.567 4 1.2 -47 40 60 40 160 100 77 177 1.925 2.5 4.425 4 1 -17 50 50 50 200 100 86 186 1.72 2 3.72 4 0.9 14 60 40 60 240 100 93 193 1.55 1.67 3.216667 4 0.7 47 70 30 70 280 100 113 213 1.61 1.42 3.04 4 2 67 80 20 80 320 100 143 243 1.7875 1.25 3.0375 4 3 77 90 10 90 360 100 183 283 2.03 1.11 3.14 4 4 77 100…