3. Business is booming for Consulting Services, Inc. (CSI), a local supplier of computer set-up consulting services. The company can profitably employ technicians as quickly as they can be trained. The average hourly rate billed by CSI for trained technician services and the number of billable hours (output) per quarter over the past six (6) quarter are as follows: Q1 Q2 Q3 Q4 Q5 Q6 Hourly rate($) 20 25 30 35 40 45 Billable hours 2,000 3,000 4,000 5,000 6,000 7,000 Quarterly demand and supply curves for CSI services are as follows: Qd=4,000-200P +2,000 T (Demand) Qs -2,000+ 200 P Where Q = output; P= price; T = trend factor, T-1 during first quarter and increases by 1 Unit per quarter, in other words, Q2 = 2. a. Express each demand and supply curve in terms of price as a function of output. b. Plot the demand and supply functions over the last six (6) quarters. C. What are your observations based on response to part (b)?
3. Business is booming for Consulting Services, Inc. (CSI), a local supplier of computer set-up consulting services. The company can profitably employ technicians as quickly as they can be trained. The average hourly rate billed by CSI for trained technician services and the number of billable hours (output) per quarter over the past six (6) quarter are as follows: Q1 Q2 Q3 Q4 Q5 Q6 Hourly rate($) 20 25 30 35 40 45 Billable hours 2,000 3,000 4,000 5,000 6,000 7,000 Quarterly demand and supply curves for CSI services are as follows: Qd=4,000-200P +2,000 T (Demand) Qs -2,000+ 200 P Where Q = output; P= price; T = trend factor, T-1 during first quarter and increases by 1 Unit per quarter, in other words, Q2 = 2. a. Express each demand and supply curve in terms of price as a function of output. b. Plot the demand and supply functions over the last six (6) quarters. C. What are your observations based on response to part (b)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:3. Business is booming for Consulting Services, Inc. (CSI), a local supplier of computer set-up
consulting services. The company can profitably employ technicians as quickly as they can be
trained. The average hourly rate billed by CSI for trained technician services and the number of
billable hours (output) per quarter over the past six (6) quarter are as follows:
Q1
Q2
Q3
Q4
Q5
Q6
Hourly rate($) 20
25
30
35
40
45
Billable hours 2,000 3,000
4,000
5,000
6,000
7,000
Quarterly demand and supply curves for CSI services are as follows:
Qd=4,000-200P +2,000 T (Demand)
Qs -2,000+ 200 P
Where Q = output; P= price; T = trend factor, T-1 during first quarter and increases by 1
Unit per quarter, in other words, Q2 = 2.
a. Express each demand and supply curve in terms of price as a function of output.
b. Plot the demand and supply functions over the last six (6) quarters.
C. What are your observations based on response to part (b)?
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