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- In which of the following cases will the effect on equilibrium output be indeterminate (i.e., depend on the magnitudes of the shifts in supply and demand)? Demand remains constant and supply increases Demand increases and supply increases Demand decreases and supply increases Demand decreases and supply decreasesLet the following demand and supply equations be respectively:D = 5p ́ ́-4p ́ + 11S = 6p ́ ́-2p ́ + 5p-4Find p (t) with the hypothesis that the market is in equilibrium with the conditionsinitials p (0) = 4 and p ́ (0) = 7In an efficient market, investors can consistently make high returns since it is easier to estimate price movements. True or False?
- We need to use implicit differentiation to derive comparative statics results in the case where: There are multiple exogenous shocks to the market at once. The demand and supply functions are linear. We are studying a dynamic process of adjustment. We do not have an exact solution for equilibrium prices in closed form. O More than one of the above. No answer.The demand equation for the Widget Company has been estimated to be: Q = 20,000 + 10 I - 50P + 20 PC where Q = monthly number of widgets sold, I = average monthly income, P = price of widgets, and PC = average price of competing goods. If next month's income is forecast to be 2,000, the price of competing goods is forecast to be $20, and the price of widgets will be set at $30, forecast sales. b. What will sales be if the price is dropped to $20?A producer will supply 30 items at a price of $15 per item. For every $9 increase in price per item, 515 more items will be provided. Find the linear supply function, p(x), for this item. Enter your answer in slope-intercept form, using exact numbers.
- An analyst for a major apparel company estimates that the demand for its raincoats is given by ln Qdx = 10 − 1.2 ln Px + 3 ln R − 2 ln Ay where R denotes the daily amount of rainfall and Ay represents the level of advertising on good Y. What would be the impact on demand of a 10 percent increase in the daily amount of rainfall? What would be the impact of a 10 percent reduction in the amount of advertising directed toward good Y? Can you think of a good that might be good Y in this example?Would the assumption that goods are perfect substitutes be valid in a study of intertemporal food purchases? Explain with graphic.Post-Quiz Q: Assume that the demand curve D(p) given below is the market demand for widgets: Q = D(p) = 1628 - 16p, p > 0 Let the market supply of widgets be given by: Q = S(p) = 4 + 8p, p > 0 where p is the price and Q is the quantity. The functions D(p) and S(p) give the number of widgets demanded and supplied at a given price. What is the consumer surplus at equilibrium? Please round the intercept to the nearest tenth and round your answer to the nearest integer. What is the producer surplus at equilibrium2 Answer Save your answer
- Variables typically included in a multivariate supply function (other than the price and quantity of the item the supply function represents) are prices of other goods that use similar input resources for production, the number of suppliers, techniques of production, taxes and subsidies, prices of input resources, weather, and expectations. Please answer the following questions about the affect changes in other variables might have on the supply of the item. These changes will either cause supply to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer. 1. If the market price of gasoline returns to the near $4.00 per gallon level then demand for gas-gulping large autos is likely to decrease and manufacturers of these autos are likely to _____________ their supply: 2. A relative increase in the productivity of the technology used to produce the item being considered is likely to _____________________ its supply. 3. Hailstorms have pelted…Since 2019, the price of lithium in China has been falling (and it is predicted to continue falling through 2020). Assume nothing else is happening (the only thing changing is the price). As the price falls, demand for lithium in China falls True or false?S6. Consider a simplified model in which everyone gets electricity either from solar power or from fossil fuels, which are both in relatively inelastic supply. (Ín the case of solar power, think of the required equipment as being in inelastic supply.) The upfront costs of using solar energy are high, so when the price of fossil fuels is low (that is, when few people are using fossil fuels and there is a high demand for solar equipment), the cost of solar can be prohibitive. In contrast, when many individuals are using fossil fuels, the demand for them (and thus the price) is high, whereas the demand (and thus the price) for solar energy is relatively lower. Assume the payoff table for the two types of energy consumers to be as follows: COLUMN Solar Fossil fuels Solar 2,2 3,4 ROW Fossil fuels 4,3 2,2 (a) Describe all possible ESSS of this game in terms of s, the proportion of solar users, and explain why each is either stable or unstable. (b) Suppose there are important economies of…