Q: The estimated supply functions for avocados is:Qs=100 p- 80 -0.25PfwhereQs is quantity supplied (in thousand kilograms)- p is the price of avocado per kg in US dollar-pf is the price of fertilizer per kg in US dollar and is $80 per kg.Suppose that selling price of avocado per kg is $5a) Suppose now that pf = $120 per kg. Draw the new supply curve based on this new price of fertilizerwith the old supply curve where the price of fertilizer per kg in US dollar is $80 per kg. Show thedirection of movement on the supply curve and explain how this change affect the supply.b) Suppose now that pf = $40 per kg. Draw the new supply curve based on this new price of fertilizer withthe old supply curve where the price of fertilizer per kg in US dollar is $80 per kg. Show the direction ofmovement on the supply curve and explain how this change affect the supply.

Given:Supply function: Qs = 100p - 80 - 0.25PfPf = 80P = $5Let's graph the original supply…

Answered: Q: The estimated supply functions for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q: The estimated supply functions for avocados is: Qs 100 p 80 - 0.25 pf where Qs is quantity supplied (in thousand kilograms) - p is the price of avocado per kg in US dollar - pf is the price of fertilizer per kg in US dollar and is $80 per kg. Suppose that selling price of avocado per kg is $5 a) Calculate the impact of unit change in price on quantity supplied. Explain your result. Pay attention to unit in your explanation. b) Suppose kg price of avocados goes up by $3. How much the quantity supplied would increase? Show it on a supply diagram and explain your result. c) Now suppose kg price of avocados decreases by $2. How much the quantity supplied would decrease? Show it on a supply diagram and explain your result. d) Calculate the necessary change in price (slope of supply curve) that we should have for a unit change in quantity supplied. Explain your result. e) Using the formula for the slope of the supply curve, calculate how much price should change if we want to increase the…
Q3 Suppose that an estimated monthly demand and supply functions forapples in the U.S. are given by:Qd = 200 - 40 p + 20 pq + 0.015YQs = 85 + 35 p - 20 p fwhereQd is the quantity of apples demanded in tons per month;p is the price of apples in US dollars per kilogram;pq is the price of quince (a substitute good) in dollars per kilogram;Y is the income of consumers per month in thousand dollar;Qs is the quantity of apples supplied in tons per year;p f is the price of fertilizer ( an input) in dollars.And supposeQs is the quantity of apples supplied in tons per year;p f is the price of fertilizer ( an input) in dollars.And suppose further thatpq is $2 per kilogram;Y is 4000 per month;p f is $0 .50 per kilogram.Answer the following questions.
← 1 Suppose the supply for a certain textbook is given by p=- (a) How many books are demanded at a price of $20? (b) How many books are supplied at a price of $20? (c) Graph the supply and demand functions on the same axes. (a) How can the number of books demanded be found? and demand is given by p=- -79² +30, where p is the price and q is the quantity. 1 29 OA. Substitute the price for q in the demand equation. B. Substitute the price for p in the demand equation. OC. Solve each equation for q and set the resulting expressions equal to each other. OD. Set the two expressions for p equal to each other. The number of books that are demanded at a price of $20 is. (Round to the nearest whole number as needed.) iew an example Get more help. Clear a
Suppose that the demand curve for corn has the equation p= -0.22q +7.774 and the supply curve for corn has the equation p = 0.2q +3.7, where p is the price per bushel in dollars and q is the quantity (demanded or produced) in billions of bushels. (a) Find the quantities supplied and demanded when the price of corn is $4.60 per bushel. (b) Determine the quantity of corn that will be produced and the price at which it will sell. (a) The quantity supplied when the price of corn is $4.60 is (Round to the nearest whole number as needed.) billion bushels.
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The annual demand for imported oranges is given by the following equation:QD = 600,000 − 30,000Pwhere P is the price per kilogram and QD is quantity of kilograms demanded per year.The supply of imported oranges is given by the equation:QS = 20,000P Calculate the following: ii. the amount of revenues collected
Assumed that the demand (D) for potato given by demand: Q = 1500 − 15P, where Q isquantity per month measured in kilos and P is price per kilo. 1. Supply is equals to 900 kilos one day, what will the price be?2. Supply were to fall to 300 kilos, what would the price be?3. The D for Potato shifts outward to Q = 2100 − 15P, what will be answer in part 1 and 2 change?4. Graph the results
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