The demand for a certain company's e-reader can be approximated by7809= - 1 million units per year (60 ≤ p ≤ 400),Рwhere p is the price charged by the company. Assume that the company is prepared to supplyq=0.0195p 1 million units per year (60 ≤ p ≤ 400)at a price of $p per unit.(a)Calculate the equilibrium price and equilibrium demand.equilibrium price$equilibrium demand1210(b) Graph the demand and supply functions to confirm your answer in part (a) graphically. A graphing calculator is recommended.9q8642Need Help?-100Submit AnswerRead It200300400Master it500million e-readers per yearP1210862100200300400500Р℗q121082100 200 300400 500Р3q12108(c) Estimate, to the nearest 0.1 million units, the surplus or shortage of e-readers if the price is set at $73. (Round your answer to one decimal place.)There would be a -Select-- ofmillion e-readers.62100Home My Assignments200300400Request Extension300Р6Copyright © 1998-3034 Cengage Learning, Inc. All Rights Reserved | TERMS OF USE PRIVACY

Market equilibrium is established at the equality of quantity supplied and quantity demanded.…

where p is the price charged by the company. Assume that the company is prepared to supply q=0.0195p - 1 million units per year (60 s p ≤ 400) at a price of $p per unit. (a) Calculate the equilibrium price and equilibrium demand. equilibrium price $ equilibrium demand (b) Graph the demand and supply functions to confirm your answer in part (a) graphically. A graphing calculator is recommended. 9 12 10 8 100 Need Help? Read Submit Answer 200 300 million e-readers per year 400 500 6 12 10 8 4 100 200 300 400 500 12 10 8 Le 200 300 400 500 Ⓡ @ 12 10 8 100 (c) Estimate, to the nearest 0.1 million units, the surplus or shortage of e-readers if the price is set at $73. (Round your answer to one decimal place.) There would be a-Select- of million e-readers. 100 quright © 1009 Home My Assignments 200 300 400 Request Extension 300 3034 Coppag Learning Inc. All Rights Reserved | TERMS OF USE PRIVACY

where p is the price charged by the company. Assume that the company is prepared to supply q=0.0195p - 1 million units per year (60 s p ≤ 400) at a price of $p per unit. (a) Calculate the equilibrium price and equilibrium demand. equilibrium price $ equilibrium demand (b) Graph the demand and supply functions to confirm your answer in part (a) graphically. A graphing calculator is recommended. 9 12 10 8 100 Need Help? Read Submit Answer 200 300 million e-readers per year 400 500 6 12 10 8 4 100 200 300 400 500 12 10 8 Le 200 300 400 500 Ⓡ @ 12 10 8 100 (c) Estimate, to the nearest 0.1 million units, the surplus or shortage of e-readers if the price is set at $73. (Round your answer to one decimal place.) There would be a-Select- of million e-readers. 100 quright © 1009 Home My Assignments 200 300 400 Request Extension 300 3034 Coppag Learning Inc. All Rights Reserved | TERMS OF USE PRIVACY

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The demand for a certain company's e-reader can be approximated by
780
9= - 1 million units per year (60 ≤ p ≤ 400),
Р
where p is the price charged by the company. Assume that the company is prepared to supply
q=0.0195p 1 million units per year (60 ≤ p ≤ 400)
at a price of $p per unit.
(a)
Calculate the equilibrium price and equilibrium demand.
equilibrium price
$
equilibrium demand
12
10
(b) Graph the demand and supply functions to confirm your answer in part (a) graphically. A graphing calculator is recommended.
9
q
8
6
4
2
Need Help?
-
100
Submit Answer
Read It
200
300
400
Master it
500
million e-readers per year
P
12
10
8
6
2
100
200
300
400
500
Р
℗
q
12
10
8
2
100 200 300
400 500
Р
3
q
12
10
8
(c) Estimate, to the nearest 0.1 million units, the surplus or shortage of e-readers if the price is set at $73. (Round your answer to one decimal place.)
There would be a -Select-- of
million e-readers.
6
2
100
Home My Assignments
200
300
400
Request Extension
300
Р
6
Copyright © 1998-3034 Cengage Learning, Inc. All Rights Reserved | TERMS OF USE PRIVACY

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A large company in the communication and publishing industry hs quantified the relationship between the price of one of its products and the demand for this product as Price = 160 -0.01 xDemand for an annual printing of this particular product. The foxed costs per year (ie. per printing) = $4T 000 and the variable cost per unit = $35. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 7,000 units per year. The maximum profit that can be achieved is S. (Round to the nearest dolar.) The unit price at the point of optimal demand is S per unit (Round to the nearest cent)
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Q2 The market equilibrium price and quantity of a good may be found by solving the simultaneous equations: Q + 3P = 48 (1) Q – 2P = 30 (2) (a) Explain which of these equations represents the supply curve and which represents the demand curve. (b) If the demand curve were to be drawn with Q on the horizontal axis and P on the vertical axis, state the values of the slope and vertical intercept. (c) Determine the equilibrium price and quantity algebraically.
The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) Q. How much will the demanded quantity change if the price of apples increases to 1.5? a. It will decrease by 0.4 million kilos. b. It will decrease by 0.5 million kilos. c. It will increase by 2 million kilos. d. It will increase by 0.5 million kilos. e. All the other answers are wrong.
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