Question IIIby the function Qd = 252 – 4P, and the supply is perfectly inelastic such thatQs = 172, as farmers cannot change the quantity supplied of cheese in theshort-run. Calculate the following:Assume that the market demand for cheese is given1. The consumer surplus in the market for cheese.2. The own-price elasticity of demand for cheese at the price of $40 per unit.3. The reservation price of consumers, at the point where the elasticity of demand is equal to0.189.

Given, the market demand for cheese: Qd = 252-4P Supply is perfectly inelastic: Qs= 172 Equilibrium…

Answered: Question III by the function Qd = 252 –…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please answer 1 and 2
Suppose the demand curve for a product is given by: where I is average income measured in thousands dollars. The supply curve is: Q 3P 150. Q=200-2P+41 If1 =25, find the market-clearing price and quantity for the product. The market-clearing price is $ and the market-clearing quantity is (Enter your response as an integer.) 220 200 180 160- 140- 120- 100- 80- 60- 40- 20 100 200 Quantity
The market equilibrium point for a product is reached when 6000 units are produced and sold at $21 per unit. The manufacturer will not produce any units at the price of $5, and the customers will not buy any at the price of $69. Find the supply and demand equations, assuming they are linear. The equations should express price p in terms of quantity q. a. Supply equation P= b. Demand equation P=
P $12 $9 $3 O equal to O greater than Q** O less than Q not comparable to S+T The figure above shows the market for pies. According to the graph above, the price elasticity of demand is the price elasticity of supply. S D Q 1
Consider the demand for soap shown in Figure 1 above. What is the quantity demand for soap if the price of a pound of soap is $5? A) 210 pounds B) 248 pounds C) 286 pounds D) 305 pounds
Consider the weekly supply of gasoline in Figure 1. How much gasoline will producers wish to sell if the price of a gallon of gasoline is $1.20? A) 100K gallons b) 140K gallons C) 236K gallons D) 308K gallons
Suppose that the market demand for Turkey is given by: Q_(T)=2-8P_(T)+2P_(C)+0.0015I Where Q_(T) is annual quantity demanded of turkey in million pounds, P_(T) is the price of turkey per pound, P_(C) is price of chicken per pound, and I is the average household income in dollars per year. a. Find the annual quantity demanded of turkey if the price turkey is $2.00 per pound, price of chicken is $1.50 per pound and the annual household income is $30,000.
Suppose that the supply of carrots is qs=1.5P0.5 , while the demand for qd= 200\P carrots is . 1.1a) Find the equilibrium price. 1.1b) Calculate the equilibrium quantity. 1.1c) Calculate the price elasticity of supply ( ) at the equilibrium point.
Burger demand curve is represented by the following equation:T=10-Q . a.If at the current market price, the elasticity of demand for burger is -2, what is the market price and what is the equilibrium quantity?b.Please write down a supply curve that aligns with the above characterized equilibrium.
24. Which of the following statements is correct? A) The demand for New Balance shoes is more elastic than the demand for shoes in general. B) The demand for shoes in general is more elastic than the demand for Nike shoes. C) The demand for luxuries is less elastic than the demand for necessities. D) The demand for a narrowly defined good is less elastic than the demand for a more broadly
Identify three factors that are likely to affect the price elasticity of supply for rice. Clearly indicate the impact that each factor with have on the price of rice elasticity.
3) When is demand said to be inelastic? a) when the quantity demanded changes proportionately more than price b) when the quantity demanded changes proportionately more than income c) when the quantity demanded changes proportionately less than price d) when the quantity demanded changes proportionately less than income 4) Suppose there is a 3 percent increase in the price of good X and a resulting 6 percent decrease in the quantity of X demanded. What is the price elasticity of demand for X? a) 0 b) 2 c) 6 d) infinite

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS