MC ATC AVC B A Q2 Which part of the MC curve is also referred to as the supply curve of the firm? (b)Also explain the reason why producers do not supply below this point. %24
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- K A retail chain will buy 700 cordless phones if the price is $40 each and 500 if the price is $50. A wholesaler will supply 550 phones at $20 each and 1950 at $60 each. Assuming that the supply and demand functions are linear, find the market equilibrium point and explain what it means. Market equilibrium occurs when the number of units is and the price is $ per unit.03. Assuming this market is at equilibrium, the total amount paid is $ _______. a) 9 b) 12 c) 21 d) 54 e) 72 f) 102 g) 126 h) 144 i) 156 j) 228 k) 25211.If close substitutes are difficult to find in the short run, which of the demand curves in the figure best represents market demand in the short run? A) DI ( B) D2 C) Both curves are short-run curves. D) Both curves are long-run curves.
- 9. The supply curve for the product X is given by Qd=-520+20P. a. Find the inverse supply curve.Price $6 5 40 Multiple Choice O Refer to the figure above. At the equilibrium point in this market, the sellers' total revenues are equal to $300. 50 Quantity $50. 60 S 3 of 50 Next >The following table shows the demand and supply of tickets of a football game which will be held at Shah Alam Stadium. Unit Price (RM) Market Demand (units) Market Supply (units) 20 5000 3500 40 4000 3500 60 3000 3500 80 2000 3500 100 1000 3500 a) On your foolscap paper, draw the demand and supply curves. Label all axes, all curves and the equilibrium point. (6m) b) How much is the equilibrium price and equilibrium quantity? (2m) c) At which price will there be a surplus of 2500 tickets? (1m) d) What will happen when the market price is RM40? Show your answer on the same diagram. (3m) e) Why is the supply of tickets fixed at 3500? (1m)
- (c) If the rent of the building the firm occupies increases, what will happen to the firm’s profit-maximizing quantity of hats in the short run? Explain.QUESTION 14 If two goods are substitutes, then a(n) A increase in the demand for one of them will cause its price to fall B. increase the supply of one of them will cause its price to rise C. increase in the price of one of them will cause the demand for the other to increase D. increase in the price of one of them will cause the supply of the other to increase decrease in the price of one of them will cause the demand for the other to increase E. QUESTION 15 If the supply of coffee falls due to bad weather conditions in coffee-exporting countries, then the A price and quantity will rise B. price and quantity will fall C. price will fall and quantity will rise price will rise and quantity will fall quantity will fall, but price may rise or fallThe relationship between two substitute products are always A. Positive B. Negative C. No relationship D. None of the above
- 4. Suppose the demand function for a product is 'p(x) = 400-(1/10000)x^3" (in dollars). What price maximizes revenue? (Don't forget to use the sales level to compute the price.) check Reference Answer:" dollarsPRICE (Dollars per bippitybop) 200 180 160 140 120 100 80 60 40 20 O 0 1 xe Demand 48 56 64 72 00 QUANTITY (Bippitybops per day) 8 18 24 32 40 Total Revenue Calculate the daily total revenue when the market price is $180, $160, $140, $120, $100, $80, $60, and $40 per bippitybop. Then, use the green point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph.d. the substitution effect always dominates the income effect 15. Suppose domestic beef producers face demand of O,-1500- SP. In the very short run 500 head of beef are produced. Suppose mad cow strikes a portion of the national herd and the amount brought to market falls to 400. The price per head will rise by a. 20 b. 50 10 c. d. 30 c. 40