The demand and supply curves for a product are given as: Demand: p+ q = 120 Supply: 2 p-5 q = 40 At the price p = $50, find the total gains from trade. O $948
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- A person who has an addiction for a production will most likely have * an elastic demand for that product. an inelastic demand for that product. no demand for that product. an elastic supply for that product. a side siness providing copy machine services. The equilibrium price is the * price at which the market clears average price consumers are willing to pay. O price at which all consumers are satisfied. O price at which quantity supplied is maximized. O price at which all potential suppliers will sell.50 Supply 45 40 35 W 30 25 20 15 Demand 10 100 200 300 400 500 600 700 800 900 1000 QUANTITY Refer to Figure 4-7. At what price would there be an excess demand of 600 units of the good? O $20 O $10 O $15 O $5 PRICEMarket for flat-screen TVs: Demand: Q=4,600 -3P Supply: Q-600 +1P What would be the equilibrium price and quantity for flat-screen TVs? O $1,600; 1,000 O $1,000; 1,600 O $2,000; 2,600 O $600; 3,000
- 0 Price P₂ 0 Q₁ Q₂ Quantity Graph (1) Multiple Choice O KE₂ O O O S₁ D graph (1) graph (2) D₂ graph (3) graph (4) $₂ Q₁ Q₂ Quantity Q₂-Q₁ Quantity Graph (4) Graph (3) Select the graph above that best shows the change in the digital camera market when the productivity of workers who produce cameras increases. P₂ 0 Price Q₂-Q₁ Quantity Graph (2) P2. P₁ 52 D S₁Please refer to the figure below. The equation for p = 105-0.005D - 25,000+65D W Y D (units sold) How much is the optimum demand for the commodity if p = 105 – 0.005D? O A. 4000 О В. 4200 О С. 4300 O D. 4500 Cost/Revenuehe quantity demanded each month of Russo Espresso Makers is 250 when the unit price is $136. The quantity demanded ach month is 1000 when the unit price is $106. The suppliers will market 750 espresso makers when the unit price is $80 er higher. At a unit price of $100, they are willing to market 2250 units. Both the supply and demand equations are known o be linear. (a) Find the demand equation. -1 -x + 146 25 p = (b) Find the supply equation. 1 x+ 70 p = 75* (c) Find the equilibrium quantity and the equilibrium price. |× units
- A gift shop sels ceramic figurines for $80 and crystal vases for $100. At these prices, the gift shop sells 12 ceramic figurines and 8 orystal vases p quantity demanded of ceramin figurines and crystal vases will increase to 18 units and 12 units per day, respectively. If the gift shop wants to increase revenue, which of the following actions should be taken? OA Increase the price of both ceramin figurines and crystal vases OB. Decrease the price of both ceramic figurines and crystal vases. OC. Increase the price of ceramic figurines and decrease the price of crystal vases. OD. Decrease the price of ceramic figurines and increase the price of crystal vases day. If the price of ceramic figurines fals to $64 and the price of crystal vases fails to $25, theRefer to the figure below: A P 16 11 8. 100 150 225 300 350 Quantity If the price is $16, the resulting O shortage will lead to a fall in price. O surplus will lead to a fall in price. O shortage will lead to a rise in price. O surplus wil Icad to a risc in pricc. を %24Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned, however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(1) the concept of elasticity of demand, (2) why raisingprices without understanding the elasticity would bea bad move, (3) your recommendations for measurement, and (4) the potential impact on profits for elasticand inelastic demand
- Price (dollars per bucket) 16 15 14 So 13 12 10 200 300 400 500 600 700 800 Quantity (buckets) The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from So to S1. The amount of this tax is per bucket of golf balls. O A) $3 B) $1 C) $2 O D) $4 %3DPRICE (Yen per gram) 100 90 80 70 60 40 30 20 10 0 0 0 Demand + 20 40 60 80 100 120 140 160 180 200 QUANTITY (grams of uff per month) Graph Input Tool Demand for Uff Price of Uff (Yen per gram) to eat my uff this morning, but there wasn't any Quantity Demanded DEMAND SHIFTERS Average Income -(Yen per month) Price of Tulg (Yen per gram) Price of Snick (Yen per gram) Of Suppose that the price of a gram of uff decreased from 50 yen to 40 yen. This would cause a an increase in 50 100 100 20 50 Plug any value lower than the current number into the Average Income box. A decrease in average income causes a leftward the demand curve. the demand curve and therefore When the prices of tulg or snick change, there is a shift of the demand curve for uff. The directions of these changes imply that snick and uff are , and that tulg and uff are . For example, a Hermetian might say, "I went in my fridge. So instead of having uff for breakfast, I ate someFigure 5.6 shows a vertical demand curve. The price elasticity of demand in the figure below is Figure 5.6 Price O 1 -100 O-1 O infinity Quantity