COMPUTATION. Provide the answer for the requirements below. Show all necessary computations. Present your answer neatly and orderly. Given: Price/unit (Pesos) 20 40 8 8 60 80 100 120 Required: Derive the following: Quantity 30 (a) 60 (b) 90 (c) 120 (d) 150 (e) 180 (f) a. supply equation b. demand equation c. equilibrium quantity d. equilibrium price e. price elasticity of demand 1. form a to b 2. from e to f f. price elasticity of supply 1. from I to n 2. from o to p Quantity 240 (m) 200 (1) 160 (n) 120 (0) 80 (p) 40 (a)
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- When the price of a gallon of milk increases from $6 to $8, quantity demanded decreases to 27 gallons. Assuming the price elasticity of demand for milk is -0.3, what is the original quantity demanded? (assuming further that this is the point elasticity relative to the original point on the demand curve.) Please make sure you give a numerical answer with no units and/or space or period (.) or comma (,) before or after your answer. Enter your answer hereThe following table indicates the demand schedules for four types of consumers A, B, C, and D and the number of consumers in each group (top row). The quantity demanded by each type of comuner (GxGO and O shown for market prices ranging from $10 down to $4 What is the combined quantity demanded at a market price of $77 Number of Consumers A = 200 B=300 Q C=300 D=200 Market Price QA Q Q $10 D 0 1 1 D 1 2 3 1 3 3 3 4 7 $ 9 6 11 OC 4700 OD 3.000 OA 25.000 4.750 9 S 2 3 4 5 MI 5 8 11 16 20When sold for $790.00, a certain desktop has an annual supply of 129.5 million computers and an annual demand of 155.5 million computers. When the price increases to $865.00, the annual supply increases to 147.5 million computers, and the demand drops to 134.5 million computers. NOTE: Round slope and vertical intercept to 4 decimal places and use those rounded values to the end. (a) Assuming that the supply and demand equations are linear, find the supply and demand equations. Supply Equation p = Demand Equation p = esc (Note: The equations should be in the form p = mq + b where p denotes the price (in dollars) and q denotes the quantity (in billions). The slope and y-intercept should be accurate to 4 decimal places). (b) Find the Equilibrium price and quantity. Equilibrium price p = Equilibrium quantity q = 9- F2 A (Note: The equilibrium price should be accurate to 2 decimal places and quantity should be rounded to the nearest whole number, and the equilibrium price should include a…
- (a)Diagrammatically show and explain how oil prices dropped as concerns over fuel demand in the near term in COVID-19 pandemic hit Europe and the United States. (b)Diagrammatically show and explain what happened to the oil market if the price remained unchanged despite the concerns over the fuel demand. (c)You sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is -2.5. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for…Dashboard for Online Pricing Online the timing and tailoring of prices to specific models of products is the key to successful pricing in online markets. And “Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online.” Assuming a 10 percent decrease in price increases sales by 25 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $.50 per click and boasts a conversion rate of 5 percent (an average of 20 clicks are needed to generate a sale). What price should you charge for the product? What is the optimal markup on cost? The authors assert that price sensitivity is affected by (1) product life cycles, and (2) numbers of competitors. In fact, “when the number of competing sellers doubles, a firm’s elasticity of demand is expected to double (and you should be able to…15. Which of the following expressions is valid for the price elasticity of demand? (Q1+ Q2)/[(Q-Q1)/2] (P1+Pa)/[(P-Pi)/2] (Q-Q)/[(Q1+Q»)/ 2] (Pa-P1)/[(P1+ Pa)/ 2] (P1+P)/[(P-Pi)/ 2] (Q1+ Q2)/ [(-Q1)/2] (P-P1)/[(P1+ P2)/2] (Q-Q)/[(Q+ Q)/2] a. Price elasticity of demand = %3D b. Price elasticity of demand = %3D с. Price elasticity of demand = %3D d. Price elasticity of demand = %3D
- The following is a demand schedule for good Z. Price per unit (£) 10 15 20 25 30 Q demanded per week 30 25 15 10 (a) Plot the demand curve for good Z to show it is linear. (b) (i) Calculate price elasticity of demand (PED) for an increase in price from £5 to £10. Is demand elastic or inelastic? (ii) Calculate price elasticity of demand (PED) for an increase in price from £20 to £25. Is demand elastic or inelastic? (iii) Using your results of parts (i) and (ii), explain what happens to PED along a straight-line demand curve. (c) Explain, using diagrams, the relationship between price elasticity of demand and profits. E Please select file(s) Select file(s) 20Producers of a certain brand of refrigerator will make 1600 refrigerators available when the unit price is $320. Ata unit price of $370, 5600 refrigerators will be marketed. Find the equation relating the unit price p of a refrigerator to the quantity supplied x if the equation is known to be linear How many refrigerators will be marketed when the unit price is s4207 refrigerators What is the lowest price at which a refrigerator will be marketed?3. (a) If the demand function is P = 60 – Qfind an expression for TR in terms of Q.Differentiate TR with respect to Q to find a general expression for MR in terms of Q. Hence write down the exact value of MR at Q = 50.Calculate the value of TR when (a) Q = 50 (b) Q = 51 and hence confirm that the 1 unit increase approach gives a reasonable approximation to the exact value of MR obtained in part (1)(b) The consumption function is C = 0.01Y2 + 0.8Y + 100 (i) Calculate the values of MPC and MPS when Y = 8.(ii) Use the fact that C + S = Y to obtain a formula for S in terms of Y. By differentiating this expression find the value of MPS at Y = 8 and verify that this agrees with your answer to part (a).
- 7. Which of the following statements is (are) correct? (x) If the coefficient of price elasticity of demand has a value of 1, then the absolute value of the percentage change in price equals the absolute value of the percentage change in quantity demanded. (y) The coefficient of price elasticity of demand for a vertical demand curve equals zero because the quantity demanded does not change as the price changes. (z) The midpoint method is used to compute elasticity because it gives the same answer regardless of the direction of change A. (x), (y) and (z) В. (x) and (y) only C (x) and (z) only D (y) and (z) only E. (z) onlyThe supply and demand for concert tickets are given in the table below.Price (R)0481216202428323640Quantity Demanded15141312111098765Quantity Supplied0000013579114.1.1. Plot the supply and demand curves to scale and establish the equilibrium price and quantity. 4.1.2. What is the excess supply or demand (as applicable) when price is R24? And when price is R36? 4.1.3. Describe the market adjustments in price induced by these two prices. 4.1.4. The functions underlying the example in the table are linear and can be presented as P = 18+2Q (supply) and P = 60−4Q (demand). Solve the two equations for the equilibrium price and quantity values. 4.2. Briefly explain how each of the following affects the demand for goods and services in a market place and highlight the effects on price and the equilibrium position.4.2.1. Price of the product or service 4.2.2. Price of related goods; 4.2.3. Income of consumers; 4.2.4. Number of consumers;The Unique Gifts catalog lists a "super loud and vibrating alarm clock." Their records indicate the following information on the relation of monthly supply and demand quantities to the price of the clock. Demand Supply Price 166 131 $31 146 181 $43 Use this information to find the following. (a) points on the demand linear equation (x, p) (smaller x-value) (х, р) %3 (larger x-value) points on the supply linear equation (х, р) (smaller x-value) (x, p) = ( ) (larger x-value) (b) the demand equation p = (c) the supply equation p (d) the equilibrium quantity and price Equilibrium occurs when the price of the clock is $ and the quantity is