Walton_Multiple_Inputs_Complete_ (1)
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Boston University *
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Economics
Date
Jan 9, 2024
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Simulation of Walton's Bookstore with multiple inputs
Demand distribution - all triangular
Supply distribution
Demand @ reg price
Demand @ sale price
Minimum
125
0
100
0
0
0
Most likely
200
1.6
175
1
50
2.67
Maximum
250
0
300
0
75
0
125
200
250
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Supply Distribution
100
175
300
0
0.2
0.4
0.6
0.8
1
1.2
Regular Demand Distribution
0
50
75
0
0.5
1
1.5
2
2.5
3
Sale Demand Distribution
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Simulation of Walton's Bookstore with multiple inputs
Cost data
Demand distribution - all triangular
Unit cost 1
$7.50
Supply distribution
Demand @ reg price
Demand @ sale price
Unit cost 2
$7.25
Minimum
125
100
0
Regular price
$10.00
Most likely
200
175
50
Sale price
$5.00
Maximum
250
300
75
Decision variable
Order quantity
200
Cost
Qty Left over
Sale Demand
Sale revenue
Profit
0.927
229
200
$1,500.00
0.611
201
$2,000.00
0
0.211
28
$0.00
$500.00
Random
Number 1
Supplier's
Ability
Supply
Received
Random
Number 2
Demand at
regular price
Revenue at
Reg Price
Random
Number 3
A
B
C
D
E
F
G
H
I
J
K
L
M
N
1
2
3
4
5
6
7
8
9
10
11
12
13
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Related Questions
. Demand, Supply, consumer surplus, Market Equilibrium Price floor. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum.
QD = 80,000 – 20,000Px (Demand)
QS = - 20,000 + 20,000Px (Supply)
where Q is quantity measured in pounds of scrap aluminum and P is price in dollars.
Answer the following questions:
A.
What is the condition for market equilibrium?
B
Calculate the market equilibrium price and equilibrium output?
C.
What is the inverse demand curve P = f (QD)?
D.
Compute the consumer surplus at the equilibrium price.
E.
What is the inverse supply curve P = f (Qs)?
F.
Compute the producer surplus at the equilibrium price.
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An identity of the Supply and Use Table is:
a.
Total Supply > Total Use
b.
Total Supply < Total Use
c.
Total Output = Total Input
d.
Total Output > Total Input
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Multiple choice - microeconomics
43) What will entry into a market by new firms do?
A. It will increase the price of the good
B. It will increase profits of existing firms
C. It will increase the costs of existing firms
D. It will increase the supply of the good.
42) What is one consideration that applies to the analysis of a market over the long run but not to the analysis over the short run?
A. changes in firms’ cost structures
B. changes in the numbers of firms in the market
C. changes in the price of the product
D. changes in firms’ profits
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Select one:
a. the demand curve will shift to the left and the equilibrium price will decrease.
b. the supply curve will shift to the left and the equilibrium price will increase.
c. the supply curve will shift to the right, the demand curve will shift to the left, and the equilibrium price will decrease.
d. the supply curve will shift to the left, the demand curve will shift to the left, and the equilibrium price will increase.
e. the demand will shift to the right and the equilibrium will price neither increase nor decrease
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62) Refer to the attached Figure 18. What would likely cause an increase in market supply from Supply0 to Supply1?
A. the entrance of new firms in the market
B. existing firms in the market increasing their level of production beyond Q1
C. existing firms adding new product lines
D. existing firms changing their cost structure
61) A firm’s marginal cost has a minimum value of $2; its average variable cost has a minimum value of $5; and its average total cost has a minimum value of $7. At what product price will the firm shut down?
A. above $10
B. above $11
C. below $5
D. above $12
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nomics
Volume of Production
Price (dollars)
Total Production Cost (dollars)
10
1434
22841
30
991
26408
35
917
23781
45
1020
29675
70
703
38801
100
298
44834
4. Compute the slope of the demand curve. The potential answers are: A: -12.89 B: -10.5 C: -11.33 D: -14.28 E: -10.64
5. Compute the maximum potential sales quantity. The potential answers are: A: 127 units. B: 125 units. C: 105 units. D: 116 units. E: 168 units
. 6. What percentage of total costs can be estimated based on the volume of production? The potential answers are: A: 69% B: 97% C: 91% D: 94% E: 92%
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MODIFIED TRUE or FALSE. Write "T" if the given statement is TRUE, correct and valid. Write "F", if otherwise. If your answer is either "T" or "F" explain, why is it true or false. Cite a theory, use a formula or graph to support your answers.
1. In a perfectly competitive market, there are many buyers and sellers and no can influence the market price or quantity.
2. Economic model is an abstract representation of the "unreal world" phenomena that one wishes to examine. 3. Economic model can be expressed to an equation holding other variables to be constant.
4. Independent variable or the explanatory variable (in an economic model) is the variable that provides the explanation for any change(s) in the response variable.
5. Points below the Production Possibility Frontier or PPF are the choices of the society that are infeasible due to its limited resources.
6. Law of demand asserts that quantity demanded and its own price is directly related.
7. Law of supply states that…
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MODIFIED TRUE or FALSE. Write "T" if the given statement is TRUE, correct and valid. Write "F", if otherwise. If your answer is either "T" or "F" explain, why is it true or false. Cite a theory, use a formula or graph to support your answers.
1. In a perfectly competitive market, there are many buyers and sellers and no can influence the market price or quantity.
2. Economic model is an abstract representation of the "unreal world" phenomena that one wishes to examine.
3. Economic model can be expressed to an equation holding other variables to be constant.
4. Independent variable or the explanatory variable (in an economic model) is the variable that provides the explanation for any change(s) in the response variable.
5. Points below the Production Possibility Frontier or PPF are the choices of the society that are infeasible due to its limited resources.
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Predict the impact on each market. Use + and – to indicate whether there will be an increase or decrease in demand (D), supply (S), equilibrium price (P) and equilibrium quantity (Q). If there is no change, use N, and if the change cannot be predicted, use U for uncertain.
Market
Event
D
S
P
Q
Canadian
Early frost destroys a large percentage of the grape crop
Wood-burning stoves
The price of heating oil and natural gas triples
Cell phones
Technological advances reduce the costs of producing cell phones
Gold
Large gold deposits are discovered
Fast foods
The public show great concern over high sodium and cholesterol in fast foods; also, there is an increase in the minimum wage.
Bicycles
There is increasing concern by consumers about physical fitness; also, the price gasoline falls.
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The accompanying diagram shows the demand and supply curves for taxi rides in New York City. At E1 the market is at equilibrium with 600 million miles of rides transacted at an equilibrium price of $2.50. Calculate each of the following (round to the nearest million):
Consumer surplus:_________ Million
Producer surplus:________ Million
Total surplus:________ Million
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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A Production Possibility Curve, a definition and a graph showingan increasing opportunity cost of producing Product A as a company produces more of Product B.
Changes in quantity demanded vs. changes in market demand (the definition of each and a single graph showing each change).
A shift in the market supply curve (definition and graph).
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This is a picture of a farmer's market. A farmer's market is a place where farmers bring their fresh produce to sell to consumers at low prices. Based on the information provided to you, name at least two scarce resources that were probably used to produce the fruits and vegetables shown in the picture. What would happen if one of those resources were no longer available? Choose which resource you want to pretend is no longer available, then provide an example as to how the business would be affected.
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Draw the supply and demand curves based on the following market data
price . quantiy demand. quantity supplied
10 100 0
12. 80 20
14 60 40
16 40 60
18 20 80
20 0 100
What is the market equilibrium or clearing price?
What condition would prevail if the price is set at $12 by the government?
How would this affect the market efficiency (e.g production possibilities)?
What is required to restore the market equilibrium or clearing process?
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Determinants of supply (Main Topic) - Continous
Government intervention
Taxes
Subsidies
The state of technology
Expectations
Number of sellers
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Suppose wheat is bought & sold in a competitive market. a) Below is the competitive market graph for wheat, with price in $/bushel and quantity in millions of bushels. Identify the equilibrium. (use the graph that is single attached as a photo)
Now suppose that the government commits to buying 20M bushels of wheat, above and beyond the demand shown above. That commitment includes a promise to pay whatever equilibrium price happens with the additional purchase of 20M by the government.
Part(b) are two ways to introduce and analyze the government’s purchase
b) (a)One way to view the govt’s 20M is as extra demand above and beyond the market demand. Build this approach into the graph below left. (Use the quantity values on the graph - 0, 20, 40, 60, 80,100 – to help you get a reasonably accurate analysis.) Identify the new equilibrium P & Q (not as numbers, just position them on your graph).(b)A second way to view the govt’s 20M is as a reduction in the supply available to the…
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Economics
PROBLEM SET 2
Supply and Demand
DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2
Price
Qd
Qs
Qd + 200
(at each price)
Qs + 200
(at each price)
$50
200
800
$45
300
700
$40
400
600
$35
500
500
$30
600
400
$25
700
300
$20
800
200
Please complete demand/supply schedule 2 i.e if Qd and Qs from schedule 1 are increased by 200 units.
Determine equilibrium Price & Quantity in Schedule 1.
Determine equilibrium Price & Quantity in Schedule 2.
Assume a price floor of $45 in Schedule 1; what is the result?
Assume a price ceiling of $25 in Schedule 1; what is the result?
In both cases what is the…
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Retail Demand is Q=16-Pr
Farm Supply is Q=2+.5Pf
Marketing Cost Per Unit is MC=$5.00
Quantity
Retail Price
Marketing Cost
Farm-level Demand Price
2
4
6
8
10
Draw a graph of the market showing all relevant curves and functions on graph paper
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Assignment 1
Draw a demand curve for economics classes at HCCC, showing the trade-off between price and quantity. Now draw another demand curve to the right of the original (i.e. showing an increase in demand). Give three reasons that demand for economics classes might shift to the right like this.
The following table contains information about the wheat market:
Price per Bushel
(dollars)
Quantity Demanded (bushels)
Quantity Supplied (bushels)
$2
40,000
0
4
34,000
4,000
6
28,000
8,000
8
24,000
16,000
10
20,000
20,000
12
18,000
28,000
14
12,000
36,000
16
6,000
40,000
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When Adam Smith talked about “the invisible hand” he argued that:
High transaction costs normally prevent markets from achieving equilibrium.
Prices, in the long run, end up where both fairness and efficiency are achieved.
Changing prices leads to an “end” which buyers and sellers are not totally pleased with, but one that is efficient.
Create mutually agreed upon prices over time if the market is subsidized.
As prices increase, demand falls, but supply rises, creating an equilibrium outcome.
Self-interested activities help eliminate shortages and surpluses if price ceilings and price floors are effectively utilized.
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A supply curve slopes upward because
Question 4 options:
a)
as more is produced total cost of production decreases
b)
an increase in input prices increases supply
c)
the quantity supplied of most goods increases over time
d)
an increase in price gives producers an incentive to supply a larger quantity
arrow_forward
PROBLEM SET 2
Supply and Demand
DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2
Price
Qd
Qs
Qd + 200
(at each price)
Qs + 200
(at each price)
$50
200
800
$45
300
700
$40
400
600
$35
500
500
$30
600
400
$25
700
300
$20
800
200
Please complete demand/supply schedule 2 i.e if Qd and Qs from schedule 1 are increased by 200 units.
2.Determine equilibrium Price & Quantity in Schedule 1.
3.Determine equilibrium Price & Quantity in Schedule 2.
4.Assume a price floor of $45 in Schedule 1; what is the result?
Assume a price ceiling of $25 in Schedule 1; what is the result?
In both cases what is the implication for…
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Consider each scenario independently. In each of the following cases state, using verbal and graphical analysis
Show the correct increase / decrease in the demand or supply
Show correct labels
Show what will happen to the equilibrium price
Show what will happen to the equilibrium quantity
Show a brief explanation
What will happen in the market for tomatoes if a new study is released that shows tomatoes contain antioxidants (may help prevent cancer)?
What will happen in the market for corn if a new crop rotation technique is discovered that allows corn to be grown more easily and the price of green beans, a substitute, decreases?
What will happen in the market for gasoline if the price of oil increases and there is a vast increase in the population (e.g., another baby boomer generation)?
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Economics
ISBN:9781544336329
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Publisher:SAGE Publications, Inc
Related Questions
- . Demand, Supply, consumer surplus, Market Equilibrium Price floor. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum. QD = 80,000 – 20,000Px (Demand) QS = - 20,000 + 20,000Px (Supply) where Q is quantity measured in pounds of scrap aluminum and P is price in dollars. Answer the following questions: A. What is the condition for market equilibrium? B Calculate the market equilibrium price and equilibrium output? C. What is the inverse demand curve P = f (QD)? D. Compute the consumer surplus at the equilibrium price. E. What is the inverse supply curve P = f (Qs)? F. Compute the producer surplus at the equilibrium price.arrow_forwardAn identity of the Supply and Use Table is: a. Total Supply > Total Use b. Total Supply < Total Use c. Total Output = Total Input d. Total Output > Total Inputarrow_forwardMultiple choice - microeconomics 43) What will entry into a market by new firms do? A. It will increase the price of the good B. It will increase profits of existing firms C. It will increase the costs of existing firms D. It will increase the supply of the good. 42) What is one consideration that applies to the analysis of a market over the long run but not to the analysis over the short run? A. changes in firms’ cost structures B. changes in the numbers of firms in the market C. changes in the price of the product D. changes in firms’ profitsarrow_forward
- The supply and demand model applies to the market for drums in New York City. Demand is P = 10-.25Q and supply is P = 2+.75Q. Find the market equilibrium and surpluses. Submit your work.arrow_forwardAssume the market for organically-grown produce is perfectly competitive. All else being equal, as farmers find it less profitable to produce and sell organic produce in this market, Select one: a. the demand curve will shift to the left and the equilibrium price will decrease. b. the supply curve will shift to the left and the equilibrium price will increase. c. the supply curve will shift to the right, the demand curve will shift to the left, and the equilibrium price will decrease. d. the supply curve will shift to the left, the demand curve will shift to the left, and the equilibrium price will increase. e. the demand will shift to the right and the equilibrium will price neither increase nor decreasearrow_forwardI need help with econ multiple hw questions asap! 62) Refer to the attached Figure 18. What would likely cause an increase in market supply from Supply0 to Supply1? A. the entrance of new firms in the market B. existing firms in the market increasing their level of production beyond Q1 C. existing firms adding new product lines D. existing firms changing their cost structure 61) A firm’s marginal cost has a minimum value of $2; its average variable cost has a minimum value of $5; and its average total cost has a minimum value of $7. At what product price will the firm shut down? A. above $10 B. above $11 C. below $5 D. above $12arrow_forward
- nomics Volume of Production Price (dollars) Total Production Cost (dollars) 10 1434 22841 30 991 26408 35 917 23781 45 1020 29675 70 703 38801 100 298 44834 4. Compute the slope of the demand curve. The potential answers are: A: -12.89 B: -10.5 C: -11.33 D: -14.28 E: -10.64 5. Compute the maximum potential sales quantity. The potential answers are: A: 127 units. B: 125 units. C: 105 units. D: 116 units. E: 168 units . 6. What percentage of total costs can be estimated based on the volume of production? The potential answers are: A: 69% B: 97% C: 91% D: 94% E: 92%arrow_forwardMODIFIED TRUE or FALSE. Write "T" if the given statement is TRUE, correct and valid. Write "F", if otherwise. If your answer is either "T" or "F" explain, why is it true or false. Cite a theory, use a formula or graph to support your answers. 1. In a perfectly competitive market, there are many buyers and sellers and no can influence the market price or quantity. 2. Economic model is an abstract representation of the "unreal world" phenomena that one wishes to examine. 3. Economic model can be expressed to an equation holding other variables to be constant. 4. Independent variable or the explanatory variable (in an economic model) is the variable that provides the explanation for any change(s) in the response variable. 5. Points below the Production Possibility Frontier or PPF are the choices of the society that are infeasible due to its limited resources. 6. Law of demand asserts that quantity demanded and its own price is directly related. 7. Law of supply states that…arrow_forwardMODIFIED TRUE or FALSE. Write "T" if the given statement is TRUE, correct and valid. Write "F", if otherwise. If your answer is either "T" or "F" explain, why is it true or false. Cite a theory, use a formula or graph to support your answers. 1. In a perfectly competitive market, there are many buyers and sellers and no can influence the market price or quantity. 2. Economic model is an abstract representation of the "unreal world" phenomena that one wishes to examine. 3. Economic model can be expressed to an equation holding other variables to be constant. 4. Independent variable or the explanatory variable (in an economic model) is the variable that provides the explanation for any change(s) in the response variable. 5. Points below the Production Possibility Frontier or PPF are the choices of the society that are infeasible due to its limited resources.arrow_forward
- Predict the impact on each market. Use + and – to indicate whether there will be an increase or decrease in demand (D), supply (S), equilibrium price (P) and equilibrium quantity (Q). If there is no change, use N, and if the change cannot be predicted, use U for uncertain. Market Event D S P Q Canadian Early frost destroys a large percentage of the grape crop Wood-burning stoves The price of heating oil and natural gas triples Cell phones Technological advances reduce the costs of producing cell phones Gold Large gold deposits are discovered Fast foods The public show great concern over high sodium and cholesterol in fast foods; also, there is an increase in the minimum wage. Bicycles There is increasing concern by consumers about physical fitness; also, the price gasoline falls.arrow_forwardThe accompanying diagram shows the demand and supply curves for taxi rides in New York City. At E1 the market is at equilibrium with 600 million miles of rides transacted at an equilibrium price of $2.50. Calculate each of the following (round to the nearest million): Consumer surplus:_________ Million Producer surplus:________ Million Total surplus:________ Million Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardProvide a definition of each of the following, and the required example, explanation, or graph. A Production Possibility Curve, a definition and a graph showingan increasing opportunity cost of producing Product A as a company produces more of Product B. Changes in quantity demanded vs. changes in market demand (the definition of each and a single graph showing each change). A shift in the market supply curve (definition and graph).arrow_forward
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SEE MORE QUESTIONS
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Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc