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- 4. Currently the equilibrium price and quantity in the milk market are $4 per gallon and 100,000 gallons. The Price Elasticity of Demand is determined to be 0.80 while the Price Elasticity of Supply is determined to be 1.20. A price floor is set at 20% above the current equilibrium price. (a) Determine the dollar amount of the price floor. (b) Determine the Qs after the price is imposed. (c) Determine the Qd after the price is imposed.A business sells 30,000 units each month at a price of Tk.150 each. It is projected that monthly sales will increaseby 3000 units for each Tk.4.50 reduction in price.(i) Construct the demand equation(ii) What is the highest price to be paid for this product?(iii) What is the highest quantity demanded for this product?(iv) How many units will be bought if the price is Tk.100 per unit?(v) What is the price per unit if 40,000 units were demanded?(vi) Sketch the graph of the demand equation. You have to solve only iv,v and vi.A business sells 30,000 units each month at a price of Tk.150 each. It is projected that monthly sales will increaseby 3000 units for each Tk.4.50 reduction in price.(i) Construct the demand equation(ii) What is the highest price to be paid for this product?(iii) What is the highest quantity demanded for this product?(iv) How many units will be bought if the price is Tk.100 per unit?(v) What is the price per unit if 40,000 units were demanded?(vi) Sketch the graph of the demand equation.
- Ernest's income elasticity of demand for natural gas is 0.4. His price elasticity of demand for natural gas is -0.3, and he spends 10% of his income on natural gas. What is his substitution price elasticity? (a) -0.26 (b) -0.34 (c) 0.20 (d) -0.12 (e) None of the above Correct answer is (a) -0.26; Please explain how to solve.$1000) Average Incomes of Children with Low Income Parents (5) 9 50- 45- 40- 35- 30- 25- Upward Mobility versus Median Rent by Neighborhood Opportunity Bargains Normandy Parke 1,000 Central District 1,500 Median 2 Bedroom Rent 2,000 2,500 The image above displays the relationship between the cost of living as measured by the average rent of 2-bedroom housing, and income mobility as measured by the average income of children with low-income parents. Data for this image are from Seattle. Two neighborhoods are highlighted: Normandy Park and the Central District. Many people that receive housing vouchers would like to move to areas with high opportunities for their children, but assume those areas are too expensive. How do Normandy Park and the Central District illustrate the idea of *opportunity bargains"? there is a trade-off between the cost of living and higher income growth for the children. for families living in the Central District, Normand Park is more expensive to live in and has…Equilibrium Price: Cell Phones Worldwide quarterly sales of a brand of cell phones were approximately g-p+ 156 millon phones when the wholesale price was sp. (a) If the cellphone company was prepared to supply qdp-34 million phones per quarter at a wholesale price of sp, what would have been the equibrium price? (6) The actual wholesale price was 105 in the fourth quarter of 2004. Estimate the projected shortage or surplus at that price. There is an estimated Select of million phones
- (ch3) In a small country, the demand and supply of turbo jets are represented by QD = 1,000 - P and QS = 2P - 500. Which of the following statements is (are) TRUE?I. The equilibrium price is $700.II. At a price ceiling of $200, there are 0 supplies.III. At a price ceiling of $300, there is an excess demand of 600 units.A) I and IIIB) II and III C) II D) IIIQUESTION TWO X limited is a company producing two products A and B. The Marketing Manager has the following information for the products for the first quarter of 2020: Product Demand (Units) Price (K`000) January March January March A 30 15 10 12 B 25 30 10 2 The Marketing Manager wants to establish the Price Elasticity of Demand (PED) of the two products and strategize for increase in sales revenue. Required: (a) Define Price Elasticity of Demand (PED) (b) Calculate PED for Product A at price K5,000 per unit (c) Explain the significance of PED for the Marketing Manager in a country like Zambia. (d) On the basis of PED for each product the Marketing Manager wants to increase sales revenue for both products.(i) Interpret the results and (ii) Indicate the strategic option available for the manager as the projects increase in sales revenue.(Minimum wage) Assume that the (equilibrium) wage in the labor market for (A) low skilled workers is $10/hour. The government's goal is to help low-paid families. Is a minimum wage of $15/hour likely to better achieve the government's goal if the demand for labor is elastic (flatter) or if it is inelastic (steeper)? Provide diagram(s) to support your answer.
- 1. The marginal price ?? ?? at ? units of demand per week is proportional to the price p. There is no weekly demand at a price of $1000 per unit, that is ?(0) = 1000. There is a weekly demand of 10 units at price of $367.88 per unit, ?(10) = 367.88. (A) Find the price-demand equation. (B) At a demand of 20 units per week, what is the price? 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.(3 points) When sold for $259,000.00, Ferraris have an annual supply of 6758 vehicles and an annual demand of 6691 vehicles. When their price increases to $279,000.00, the annual supply increases to 6913, and the demand decreases to 6010 billion gallons. (a) Assuming that the supply and demand equations are linear, Afind the supply and demand equations. Supply Equation p = Demand Equationp (Note: The equations should be in the form p = mg + b where p denotes the price (in dollars) and q denotes the quantity. The slope and y-intercept should be accurate to two decimal places). (b) Find the Equilibrium price and quantity. Equilibrium price p = Equilibrium quantity q = (Note: The equilibrium price and quantity should be accurate to two decimal places, and the equilibrium price should include a dollar sign).1. (a) The weekly demand (Qd) and supply (Qs) functions for a good X are given by:-Qd = 1000 – 5pQs = -400 + 15p, where P = Price per unit (R) (i) Draw the demand and supply curves on a graph and find the equilibrium price and quantity (ii) If the demand function changes to 1200 – 5P, show the changes to part (i) above. (iii) Suppose a subsidy of R40 per unit is subsequently granted to producers of good X. Determine the new equilibrium price and quantity. (b) Use suitable examples to explain the likely effects of a price ceiling. (c) What do you understand by the ‘Substitution and Income effects’ of a change in price of a good. (d) Elaborate on the factors influencing Price Elasticity of Demand (PED) and Price Elasticity of Supply (PES) of a good.