D2) Consider the following market model:Q = kQ; = -3+6P,P,1 = P, – 0.3(Q; –Qʻ )where P is the price, Q is the quantity demanded, Qº is the quantity supplied, k is a fixednumber and t is time period.a. Set up a difference equation in terms of market price P and present its generalsolutionb. What restrictions should be imposed on k to make solution to this modeleconomically meaningful?c. Now assume kd. In addition to k = 0, now assume Poand 4. Plot the time path of the price for the first four periods.O and draw a phase diagram.O and determine the price in periods 1, 2, 3

since you have asked multiple questions and according to policy we can solve only 1 question and for…

Answered: d. In addition to k = 0, now assume Po…

d. In addition to k = 0, now assume Po = 0 and determine the price in periods 1, 2, 3 and 4. Plot the time path of the price for the first four periods.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 5. What is the Demand Function? 6. What is the Supply Function? 7. What is the Equilibrium Point?

A: To find the demand function, we substitute the quantity and price values in the standard form of the…

Q: II. PROBLEM SOLVING: BALANCE AND SOLVE THE PROBLEM. WRITE YOUR ANSWERS ON THE SPACE PROVIDED.…

A: In this question we have to find out the total assets, total liabilities with the help of the above…

Q: Resources To determine your best study plan for MLA parenthetical citation, take this pre- check…

A: Here's why: In MLA (Modern Language Association) style, when citing a book with two authors, you…

Q: 7. If inflation is higher in the United States than in the United Kingdom, (a) the dollar should…

A: Inflation is a rise in the general price level of a country. This may lead to appreciation or…

Q: Which one of the following statements is INCORRECT?

A: South African Reserve Bank (SARB), which is the central bank of South Africa, and has its role in…

Q: If a company's annual discount rate is 10% how much money would you need in 4 years to be equivalent…

A: Present Value=FV(1+r)N where, Present Value = $1000 r = discount rate = 10% = 0.10 FV = Future…

Q: six (6) strategies that the Minister of Finance could implement to reduce the consequences of the…

A: Recession is a situation in which all the economic activities are shut down.

Q: Your client makes candles as a hobby. She sells some of the candles to the public. This year she…

A: In the realm of taxation, it is essential to discern between activities pursued as hobbies and those…

Q: b. Scenario 2 InfoTech Ltd, an IT company based in Muscat, wants to set up an employee benefit…

A: Option 1 Calculation of Present Value Year Cash Flow PVF @ 15% Present…

Q: 16 - What is the amount of capital that is not needed to realize the current level of production…

A: All the goods which are man-made and are being used in further wealth production are defined as…

Q: Most renters and all homeowners will both need to pay monthly for a new furnace O their mortgage…

A: Households incur certain costs of living in a house.

Q: 4. Suppose an economy is described by the aggregate demand curve: M Y = 2000 +1.25 * G+2.5* P If Y*…

A: Potential GDP = 6000 for given G=1200 and P=1 Y is a function of G, P and M

Q: [CLO-6] A company is producing pen for 5 years, the investment value for the company is $700,000,…

A: Present Worth refers to the value of a series of cash flows or the value of a certain amount of…

Q: E3) Hello! Please help me answer this one. Please refer to the given picture/s below for the…

A: Given; Structure costs= P12000.00 Estimated life= 5 years Salvage value= $1000 Sum of year=1+2+3+4+5…

Q: i) What type of global currency system do we have today and how would you characterize it?

A: In international market, global currency is that currency which would be transacted…

Q: In 2010 the government's main medical adviser drew up plans for a minimum price for alcohol intended…

A: Goods that are necessities for the consumers due to their habits have less elastic demand. Alcohol,…

Q: (c) From now on, suppose p income tax on Bunter's total income, what should the income tax rater be?…

A: Utility function shows the relationship between utility derived and the goods consumed. Utility is…

Q: What is the effect of an ad valorem tax of v (the share of the price that goes to the government) on…

A: A fully competitive corporation just has to make one fundamental decision that is how much to…

Q: A company is contemplating the introduction of a new product with new packing to replace the…

Q: Using the data above, graph properly and with proper labels the Market Equilibrium of Lito…

A: Equilibrium occurs at such a price where the quantity demanded equals the quantity supplied.

Q: Leasing a car might be a good option for someone who O wants to customize their car O drives a lot…

A: Leasing a car means getting a car on rent.

Q: Examine the effects of government expenditure as a fiscal policy measure on the Philippines economy.…

A: FISCAL POLICY: * Fiscal policy refers to the use of government spending and tax policies to…

Q: just subpart (d) please. thank you

A: For part (d) of the question, we're considering the behavior of a working mother who is currently…

Q: |- You have the opportunity to invest in one of two companies. Company X has fixed cost of $10 000…

A: Company x fixed cost = 10,000,000 variable cost = 5/unit Company y fixed cost = 6,000,000 variable…

Q: Roger Clark obtains long-stem roses from Fred's Flowers each Friday for sale to the public. Fred…

A: Demand refers to the goods or services that people are willing to buy with their given purchasing…

Q: 8. A successful alumni of UNO wants to establish a scholarship that will pay 2 engineering students…

Q: b. What would be the size of the monetary multiplier before the change in the reserve ratio?…

A: Given, Fed's reserve ratio is 10% and the economy is in a severe recession. From the table, at a…

Q: Kevin and Maria are farmers. Each one owns a 12-acre plot of land. The following table shows the…

A: It can be defined as a situation in which one producer can produce a particular product in a more…

Q: Ruth Similar Store Larger Store Outside Store Total Sales w/o Outside Store Total Sales including…

A: Market share refers to the part or portion of the total market of an individual. It reflects the…

Q: III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington.…

A: Given below is the solution for 1, 2, 3 and 4.

Q: When the toll for a bridge crossing increased from $2 to $2.50; the daily volume decreased from…

Q: III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington.…

Q: Why might a firm wish to operate in more than one country? (5

A: Domestic firms are those which operates in domestic market only and do not have operations in any…

Q: 2.) JK Chemicals have just finished the construction of a new chemical manufacturing plant overseas…

A: In the question above, it is given that : J K Chemicals have just finished the construction of a…

Q: D3) Assume Ms. Hautale an investor is interested in embarking on property investments in the…

A: An investment is the purchase of an asset with the expectation of a future return or other income…

Q: Question Eleven Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand…

A: Governments provide financial help to businesses or industries in the form of subsidies. It is done…

Q: (g) A Phillip's curve is given by n = n + 10% - 2u, where = -1 and also -12%. Calculate the natural…

A: - To calculate the natural rate of unemployment using the given Phillips Curve equation, we find the…

Q: 3) (20 points) Consider the following voting problem: There are four alternatives A,B,C,D and five…

A: The response effectively breaks down the given voting problem, providing a clear explanation of the…

Q: An industrial plant bought a generator set from P90,000.00, other expenses including installation…

A: a) Straight Line Method (SLM) Company purchases an equipment for P90,000 with an estimated salvage…

Q: d) Distinguish between stock and flow variables. Are flow variables related to stock variables and…

A: The development of economic variables is dependent on stock and flow variables. Stock variable…

Q: Refer to the above diagrams, in which the numbers in parentheses near the AD1, AD2, and AD3 labels…

A: Aggregate demand:Aggregate Demand is when the total number of consumers have the desire to buy…

Q: (A) ( rates is given below. Credit Supply and Demand) Suppose the demand and supply of credit at…

A: please find the answer below.

Q: Suppose a US company issued 10-year bonds 5 years ago with a face value of $1,000 and an annual…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington.…

A: Demand refers to the quantity that a consumer wishes to buy at a given price in a given period of…

Q: He is planning to sell the wellington at 500 pesos for each incurring dire 150,000 pesos in the…

A: *Answer: Demand function is an inverse relation between price and quantity , whereas a supply…

Q: (Production function) A technological breakthrough raises a country’s A ̄ by 10%, but capital and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An advertising campaign will cost $305,000 for planning and $50,000 in each of the next six years.…

A: For an investment to be economically desirable the Internal rate of return of the cash flows should…

Q: i $600 today. Zaggy's idea will pay off $690 next year for certain. ose that Zaggy has no savings to…

A: All A,B,C part solved below,

Question

D2)

Consider the following market model:
Q = k
Q; = -3+6P,
P,1 = P, – 0.3(Q; –Qʻ )
where P is the price, Q is the quantity demanded, Qº is the quantity supplied, k is a fixed
number and t is time period.
a. Set up a difference equation in terms of market price P and present its general
solution
b. What restrictions should be imposed on k to make solution to this model
economically meaningful?
c. Now assume k
d. In addition to k = 0, now assume Po
and 4. Plot the time path of the price for the first four periods.
O and draw a phase diagram.
O and determine the price in periods 1, 2, 3

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington. He is trying to find out how many must he sell in order to start earning money. From an initial feasibility study, he will incur a total of 200,000 pesos for equipments and other fixed expenses. He is planning to sell the wellington at 500 pesos for each incurring direct expenses of 150,000 pesos in the production. According to Lino Bataumbakal's feasibility study, should he start selling the beef wellington, he will have the following data: Price 500 2,100 6. What is the Supply Function? 7. What is the Equilibrium Point? IV: GRAPHING: 12 10 1. What will be the TOTAL COST EQUATION? 2. How many units must he sell in order to break even? 3. How much should be her revenue to earn a profit worth 100,000 pesos? 4. If Lino would like a Net Profit of 300,000 pesos, how many units should he sell? 5. What is the Demand Function?. Q 4 6 Using the data above, graph properly and with proper labels…
III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington. He is trying to find out how many must he sell in order to start earning money. From an initial feasibility study, he will incur a total of 200,000 pesos for equipments and other fixed expenses. He is planning to sell the wellington at 500 pesos for each incurring direct expenses of 150,000 pesos in the production. According to Lino Bataumbakal's feasibility study, should he start selling the beef wellington, he will have the following data: Price 500 2,100 12 10 6. What is the Supply Function? 7. What is the Equilibrium Point? Q 4 6 1. What will be the TOTAL COST EQUATION? 2. How many units must he sell in order to break even? 3. How much should be her revenue to earn a profit worth 100,000 pesos? 4. If Lino would like a Net Profit of 300,000 pesos, how many units should he sell? 5. What is the Demand Function?. ANSWER 567
Prepare 3 interview questions about this economic topic that you plan to ask your guest. Your questions should be thoughtfully prepared and reflect your depth of knowledge about the topic and the concepts we have learned in this course. (2 sentences for each question)
Plz solve question 4)
Barter Multiple Choice is the major means of exchange in centrally planned economies. accounts for over 30 percent of the dollar volume of all exchange in the U.S. economy. entails the exchange of goods for goods. is used to circumvent the problem of a lack of coincidence of wants among potential buyers and sellers. 18 11,027 Saved AUG 24
please answer (iv)(v)
Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand sanitizers branded as Quin. The company has branches in all the regions in Ghana with its head office located at Cape Coast. It employs 1,200 people and pays an average of GHȼ 550.00 as income tax to the government of Ghana on a monthly basis. Suppose that seven thousand, eight hundred and twenty (7,820) units of Quin are produced and supplied by Sharp Inc. but the quantity demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, a GHȼ 20.00 change in the price of Quin results in a change in quantity demanded for and supplied of 4 and 5 units, respectively. [Hint: change in X due to change in Y is given as ]. Given the above information: a) Determine the equilibrium price and equilibrium quantities of Quin . b) Suppose the Government of Ghana in the wake of the COVID-19 pandemic grants a subsidy of GHs 4.50 on each Quin produced. Compute the new equilibrium price and quantities of Quin. c)…
The Sherman Antitrust Law was originally designed to prevent the formation of large corporations or cartels that could dominate the market. (T/F)
A2) Economics Assuming that the government intends to adopt a ride-sharing scheme to solve the problem of rush hour traffic congestion, the ride-sharing scheme is therefore evaluated. Known: B0 = 0, Bt = 60, t = 1, 2,… (for a perpetual gain); C0 = 1,000, Ct = 0, t = 1, 2,…. Among them, t represents the year, and Bi and Ci are divided into the benefit and cost of the i-th year. Assuming that inflation and government taxation are not considered, if the discount rate is 5%, try to use the present value criterion, the internal rate of return and the profit-to-price ratio method to evaluate whether this multiplication plan is feasible?
III. PROBLEM SOLVING Lino Batumbakal is now exploring the option to start selling beef wellington. He is trying to find out how many must he sell in order to start earning money. From an initial feasibility study, he will incur a total of 200,000 pesos for equipments and other fixed expenses. He is planning to sell the wellington at 500 pesos for each incurring direct expenses of 150,000 pesos in the production. According to Lino Bataumbakal's feasibility study, should he start selling the beef wellington, he will have the following data: Price 500 2,100 Q 12 10 4 6 1. What will be the TOTAL COST EQUATION? 2. How many units must he sell in order to break even? 3. How much should be her revenue to earn a profit worth 100,000 pesos? 4. If Lino would like a Net Profit of 300,000 pesos, how many units should he sell?
2. (TRUE/FALSE) To economists, the amount of a resource stock in situ is an important measure of scarcity of the resource
A2-2(c) Comparing your answers for change in capital stock from year 1 to 2 and from year 7 to 8 (Please See Highlights in Chart Below): What can you conclude about the speed of output growth as a country approaches its steady state? Year Capital (k) Output (v-k12) Investment Depreciation (vy) (ok) 1 2 3 16 16.02 16.396 4 16.589 5 16.778 6 16.963 7 17.144 8 17.322 4.000 4.025 4.049 4.073 4.096 4.119 4.141 4.162 1.000 1.006 1.012 1.018 1.024 1.030 1.035 1.040 0.800 0.810 0.820 0.829 0.839 0.848 0.857 0.866 Change in capital stock (yy-6k) 0.200 0.196 0.192 0.189 0.185 0.182 0.178 0.174