According to the Winemakers Association of North America, wildfires contributed to the lowest level of wineproduction in 60 years. This record low production has driven up prices sharply in the US wine market. Meanwhile,the price of microbrew beer increased significantly for the first time in many years. (Assume a cross price elasticityof microbrew beer with respect to wine is Eab = 1.5.)3.1 Illustrate this observation with one demand and supply graph for the market for California wine and anotherdemand and supply graph for microbrew beer.3.2 Make sure that your graphs clearly show (1) the initial equilibrium before the decrease in the supply ofCalifornia wine and (2) the final equilibrium.3.3 Use arrows to indicate any shifts in the demand and supply curves for each market.3.4 Label your graphs fully and write an explanation of your work.PLEASE ANSWER ALL THESE QUESTIONS AND DRAW THE GRAPHS FOR ME PLEASE THANK YOU SO MUCH < 3

1. Market for California Wine Graph 1: California Wine Market 1. Initial Equilibrium:Demand curve…

Answered: According to the Winemakers Association…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Part D As part of Government's IDIF initiative, a small technology company in the Eastern Region is developing laptop computers as substitutes to those imported from abroad. Based on market surveys, the company believes the quantity Q (in thousands of units) that will be demanded by consumers is related to the price P (in thousands of cedis) by the relationship Q= 48 – 2P', P>0. a. Find the price elasticity of demand when the price of the laptop is GHC 3,000. b. Determine where the demand is elastic, inelastic, and of unit elasticity with respect to price. c. Interpret the results of part (b) in terms of the behaviour of total revenue as a function of price.
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Gasoline for cars is produced in a market. There are equations for the Supply and Inverse Demand of car gasoline that model its Supply and Demand graph. These equations are (for supply), P = 20 + Qs, and (for Inverse Demand), P = 80 - Qd. Due to gasoline shortages, some sellers may be able to get access to more gasoline and produce it better than others. As a result, the federal government placed a quantity restriction of 15 units on the sellers. (Part I) Draw the market equilibrium with the government intervention (Q** and P**) of the quantity restriction. Please label the graph for slopes, the equilibrium point, etc. (Part II) What is the market equilibrium without the intervention of the government? (Part III) The government decided that the previous quantity restriction was not sufficient. So, it increased the restriction from 15 units to 20 units. Consequently, what is the new market equilibrium point with this new intervention? It is not necessary to label this point on the…
Problem 4: Suppose that when the price of dishwashing liquid decreases from Php 230 to Php 185, quantity supplied decreases from 250 to 210 unit. Using the mid-point elasticity approach, calculate price elasticity of supply.
Q. Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the following linear specification: Q = a + bP + cM + dPR. Where Q is the number of cans of tennis balls sold quarterly, P is the wholesale price Wilpen charges for a can of tennis balls, M is the consumers’ average household income, and PR is the average price of tennis rackets. The regression results are as follows: a- Discuss the statistical significance of the parameter estimates a^, b^, c^, and d^ using the p-values. Are the signs of b^, c^, and d^ consistent with the theory of demand? Wilpen plans to charge a wholesale price of $1.65 per can. The average price of a tennis racket is $110, and consumers’ average household income is $24,600. b. What is the estimated number of cans of tennis balls demanded? c) At the values of P, M, and Pr given, what are the estimated values of the price (E^), income…
In a study of the demand for automobiles in Canada, economists Blomqvist and Hassel distinguished between large and small cars and estimated the price and cross- price elasticities as well as the effects of the price of gasoline on the demands for small and large cars. Their results were as follows: a. C. New large cars New small cars d. Own price elasticity 1.26 2.30 Cross price elasticity 0.86 1.73 Elasticity with respect to gasoline price Note: The cross-price elasticities show that the demand for new small cars is more responsive to changes in the price of new large cars than the demand for new large cars is to changes in the price of new small cars. Do the cross-price elasticities have the expected sign? Briefly explain. b. If the price of new small cars went up by, say, 5 percent, by what percentage would new small car purchases change? {Note: In your answer to this and all of the remaining parts of this question, please indicate whether the change is an increase or a decrease.}…
Viking Publishing House observed that in the recent years books on nature conservation and climate change have been very popular. As a matter of fact, Jane Goodall's latest book, "The Book of Hope: A Survival Guide for an Endangered Planet" has been a best-seller and Viking estimates the following demand curve for the book: P = 150 - Q In this equation, P is the price of the book and Q denotes yearly sales in thousands 20,000 books would be expressed as Q = 20 books. In other words, Viking estimates that it incurs a cost of $40 for printing and shipping of each book and pays a $10 royalty to Jane Goodall for each book sold. a. Calculate the profit maximizing OUTPUT and PRICE for this book. Also, calculate the TOTAL PROFITS.
one demand function is linear and the other is called a constant elasticity demand function. Using data tables, show that the price elasticity in the linear demand function is not constant in price, and show that the price elasticity is constant in the constant elasticity demand function.
2) Imagine that you have started a firm and own the patent for a new technology that allows for the 3D printing of food. This is a huge nutritional breakthrough since the printer can provide nutritional food for years. Since you are the first with this technology and have patented it, your firm is the only firm that can produce and sell this type of printer. There are no close substitutes for your printer and your data indicates weekly demand is given by the equation Qa = 9000 - 2P. a) Your production analysis indicates that your firm's cost function is C(Q) = F +Q². Illustrate the market, 2 showing the inverse demand curve, the MR curve and the MC curve. Then, compute and illustrate your firm's profit maximizing price and quantity of the printer. How low must the fixed cost be to ensure that the firm is making positive profits? Make sure to clearly label all relevant curves. Finally, what is the markup on the printer (measure markup in the following way: Price/MC)? b) Redraw the…
Consider the demand function for the price of lobster in Maine. Where Qd is the quantity of lobster demanded. (millions of Ibs per year) Pb is the price of butter, Pem is the price of crab meat, and M is the income of consumers. According to the therefore, consumers categorize lobsters as a demand function for lobsters, the income elasticity of lobsters is Qd = 9 – 0.1P – Pb + 0.01Pem + 0.0001M O .278: normal good -280: inferior good -.0001: inferior good O .280: normal good
QUESTION 2 Replicas of popular mid-century furniture and homeware can be highly sought after by interior designers. Suppose a company sold 1000 replica Eames chairs for a price of $600 each. However, when they set the price at $750, they only sold 750. Which of the following statements are true: The point price elasticity of demand for replica Eames chairs at a price of $600 is unit elastic. At a price of $600 per chair, a 1% increase in the price of replica Eames chairs would lead to a 1% decrease in the quantity of chairs sold. The point price elasticity of demand for replica Eames chairs at a price of $600 is 0.0239 (to four decimal places). The point price elasticity of demand for replica Eames chairs at a price of $600 is 0.02 (to two decimal places).
6. Elasticity and total revenue The following graph illustrates the weekly demand curve for motorized scooters in Roanoke. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. TOTAL REVEN $700 T 8100 7500 0900 6300 5700 5100 PRICE (Dollars per scooter) 4500 3000 325 8 8 8 8 28 28 28 % 300 275 250 225 200+ 175 150+ 125 100 75 On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $50, $75, $100, $125, $150, $175, and $200 per scooter. 25 2300++ 0 0 A A B + Demand emano H on MIM 110 150 135 HHHH++ + 25 50 75 100 125 150 175 200 225 250 275 300 325 PRICE (Dollars per scooter) -A Total Revenue Total Revenue (?) (?)

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