8. Short-run and long-run effects of a shift in demandSuppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 125 millionpounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could increase your expectedlifespan by 3 years.The publication is expected to cause consumers to demandShift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication.PRICE (Dollars per pound)1098762100SupplyIn the long run, some firms will respond byDemand25 50 75 100 125 150 175 200 225 250QUANTITY (Millions of pounds)seitan at every price. In the short run, firms will respond by中喜中重DemandSupply?until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long-run equilibrium after firms and consumers finish adjusting to the news.PRICE (Dollars per pound)10run.987632100 25■ISupplyDemand+50 75 100 125 150 175 200 225 250QUANTITY (Millions of pounds)中囂中書DemandSupply?The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry isin the long

Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 125 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could increase your expected lifespan by 3 years. The publication is expected to cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. PRICE (Dollars per pound) 10 9 8 2 1 0 0 25 Supply In the long run, some firms will respond by Demand 50 75 100 125 150 175 200 225 250 QUANTITY (Millions of pounds) seitan at every price. In the short run, firms will respond by Demand Supply ? until

Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 125 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could increase your expected lifespan by 3 years. The publication is expected to cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. PRICE (Dollars per pound) 10 9 8 2 1 0 0 25 Supply In the long run, some firms will respond by Demand 50 75 100 125 150 175 200 225 250 QUANTITY (Millions of pounds) seitan at every price. In the short run, firms will respond by Demand Supply ? until

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. The supply and demand for product A at different price levels are given. Price Demand Supply 34 6 28 4 22 6. 12 16 8 15 10 10 18 4 12 a) Find the demand function (Q=a-bP) and the supply function (Q=c+dP). Define the equilibrium price and quantity for this product. b) Calculate the price elasticity of demand as the price increases from $9 to $12 (use the midpoint method). c) Calculate the price elasticity of supply as the price decreases from $12 to $9 (use the midpoint method).
Viking Publishing House observed that in the recent years books on nature conservation and climate change have been very popular. As a matter of fact, Jane Goodall's latest book, "The Book of Hope: A Survival Guide for an Endangered Planet" has been a best-seller and Viking estimates the following demand curve for the book: P = 150 - Q In this equation, P is the price of the book and Q denotes yearly sales in thousands 20,000 books would be expressed as Q = 20 books. In other words, Viking estimates that it incurs a cost of $40 for printing and shipping of each book and pays a $10 royalty to Jane Goodall for each book sold. a. Calculate the profit maximizing OUTPUT and PRICE for this book. Also, calculate the TOTAL PROFITS.
Draft a graph which shows the law of supply and demand to explain to conditions as below: You are operating a budget hotel. Coincidently, this is matching the trend/ popularity that a large group of budget concerned travellers are seeking for the stay which charge lower room rates. Government has announced to subsidise for the firms which are involving in tourism industry. Government has implemented the increase of company tax for 2% as to raise the fund to develop the infrastructure of the nation. Surge in household disposable income.
am. 79.
CASE STUDY 1 Due to the impact of Tropical Storm Harry in the Caribbean, the price of sugar rises from $0.50 to $1.00 per bag and the quantity demanded falls from 120 bags to 40 bags. a) Using your knowledge from Finite Math, show that the price-demand function is p(x) = -0.00625x+1.25 b) Calculate the elasticity of demand for sugar. c) Is sugar elastic, unitary or inelastic in this price range? (HINT: Try about 3 prices in the price-range) d) What is the interpretation of that price elasticity of demand? e) If the price of sugar ($1.00) were to increase by 15%, what would be the percentage change in the quantity demanded? f) What happens to the total revenue for sugar producers when the price of sugar increases? Explain your answer. g) Explain 4 factors that influence the price elasticity of demand.
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
QUESTION 1 Firms A, B, and C were all selling 1,000 cups of coffee per day at $3.50 per cup, but in the following week they all changed their prices. This gave their managers some information about the elasticity of demand in their local market, though they have to be careful to recognize that other factors might also have affected demand. The table below shows the change in sales as a result of their new prices; they made no other changes. Complete the table by calculating the revenue, cost of goods sold (COGS), and gross margin for each firm. Firm Baseline A B C Price per Cup $3.50 $3.00 $4.00 $2.50 Cups Sold 1,000 1,140 830 1,500 Revenue $3,500 $0 0 0 COGS @ $0.35 per Cup $350 $0 $0 $0 Gross Margin $3,150 $0 $0 $0 Coffee prices are going up, and Firm B is trying to decide whether to pass on to customers a cost increase of 10¢ per cup-to $0.45 per cup. What will be their new gross margin if they don't pass on the cost increase and demand remains unchanged? $ 0 What will be their new…
You own a bakery and shop that makes and sells gourmet doggie treats. You have done market research and you know with certainty that your product is a normal good, not an inferior good. The current demand function for your gourmet doggie treats is: QD = 480 -6*P which of course means the equation for your current demand curve is: P = 80 -(1/6)*Q You are opening a new shop in a new part of town, and you know that incomes in that part of town are much lower than incomes are where your shop is now. Which of the following is most likely the demand curve in your new shop? Multiple Choice O P=68- (1/6)*Q P = 102 - (1/6)*Q P=92-(1/6)*Q P = 88 - (1/6)*Q
Please solve my question soon I will give you like Demand for Corn Flakes is: P = 11 - Q. Supply of Kellogg's Corn Flakes is: P = 2 + Q. Now a generic company enters the market, selling generic Corn Flakes for $8. Assume consumers are indifferent between generic and Kellogg's Corn Flakes. How many boxes of corn flakes will sell in total (both brand and generic)? Enter as a value.
When you compare the absolute value of the price elasticity of demand for most products [Hint, oil is one product that works this way.] in the long run (20 years) vs absolute value of the elasticity of demand for the products in the short run (6 months), the absolute value of the long run price elasticity of demand is... [Note: we consider demand elasticity positive, even though they're technically negative. In other words, for purposes of this question, "greater" means farther away from zero] a) less than that of the short run. In the long run, this elasticity will always be very close to zero b) not zero, but less than that of the short run c) equal to that of the short run d) greater than that of the short run
Consider the market for Caribbean cruises. In the wake of the COVID-19 pandemic, the cruise companies take the following actions. First, they implement testing and tracing programs to limit the potential of COVID outbreaks on ships to occur and to spread. Second, they engage in widespread advertisement of their new and state of the art safety precautions. Using a generic model of supply and demand, show and describe how you would expect these initiatives would affect the market for cruises. Be sure to explain why which curves are shifting, and discuss changes to market equilibrium.
1. The demand function for a certain brand of CD is given by p = -0.01x² - 0.2x + 10 where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. The supply function is given by p = 0.01x² + 0.2x + 4 where p is the unit price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determine the producers' surplus if the market price is set at the equilibrium price. (Round your answer to the nearest dollar.)