3 1. Assume Coal Ben is selling Hamburger plates that have an average cost of $3 at an initial price of$6 so that its sales are 25 hundred. Now suppose that using new equipment that pre-forms theburgers Coal Bens average costs per burger are reduced to $1, per data in the table below.QuantityInitialReducedPriceDemandedCostCostCurveCurve11311031103115831207125630313543140331451501315531a. Graphically depict the range of where the old and new equilibrium price and quantitydemanded and supplied for this market will lie using the "Demand and Cost Model"(DCM) and explain your answer. (Note: In the DCM model the profit maximizing priceequals the average of the intercept of the demand curve, in this case $11,cost.)b. What are the major differences between the SDM and the DCM?, andaverage

Introduction Demand and cost of burger has given. So as per DCM model, price of per burger is $6 and…

Assume Coal Ben is selling Hamburger plates that have an average cost of $3 at an initial price o $6 so that its sales are 25 hundred. Now suppose that using new equipment that pre-forms the burgers Coal Bens average costs per burger are reduced to $1, per data in the table below. Quantity Initial Reduced Price Demanded Cost Cost Curve Curve 11 3 1 10 3 1 10 9 3 1 15 3 1 20 7 3 1 25 6 3 1 30 5 1 35 4 3 1 40 3 3 1 45 3 1 50 3 55 3 1 a. Graphically depict the range of where the old and new equilibrium price and quantity demanded and supplied for this market will lie using the “Demand and Cost Model" (DCM) and explain your answer. (Note: In the DCM model the profit maximizing price equals the average of the intercept of the demand curve, in this case $11, and average cost.) b. What are the major differences between the SDM and the DCM?

Assume Coal Ben is selling Hamburger plates that have an average cost of $3 at an initial price o $6 so that its sales are 25 hundred. Now suppose that using new equipment that pre-forms the burgers Coal Bens average costs per burger are reduced to $1, per data in the table below. Quantity Initial Reduced Price Demanded Cost Cost Curve Curve 11 3 1 10 3 1 10 9 3 1 15 3 1 20 7 3 1 25 6 3 1 30 5 1 35 4 3 1 40 3 3 1 45 3 1 50 3 55 3 1 a. Graphically depict the range of where the old and new equilibrium price and quantity demanded and supplied for this market will lie using the “Demand and Cost Model" (DCM) and explain your answer. (Note: In the DCM model the profit maximizing price equals the average of the intercept of the demand curve, in this case $11, and average cost.) b. What are the major differences between the SDM and the DCM?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

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Wanting to know if I plotted correctly and unsure how to plot market supply
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