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During the covid 19 pandemic, the ayurvedic medicines have an inelastic demand and electronic devices have an elastic demand. Imagine that technological development doubles the supply of both the products(i.e quantity supplied at each price is twice as it was earlier). (i) what will be the equilibrium price and quantity in each market? (Ii) Which product experiences a larger change in price and which product experiences a larger change in quantity?
Explain the term price elasticity of demand? How is it measured? What factors influence market demand for products? If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the optimal sale price?
Given the demand and supply function for the three goods
qd1=20-p1-p3 ;qs1=-10+p1
qd2=40-2p2-p3 ;qs2=2p2
qd3=10-p1+p2-p3 ;qs3=-5+3p3
A Write the equilibrium condition?
B find the equilibrium price?
if farmer jones plants no seeds on her farm, she gets no harvest. if she gets 5 bushels. if she plants 3 bags. she gets 6 bushels. a bag of seeds cost $100, and seeds are her only cost. use this data to graph the farmer's production function and total cost curve. explain their shapes.
Label the curves in the following graph.
a. At each market price, P1, P2, and P3, at what output level would the firm produce?
b. What profit would be earned if the market price was P1?
c. What are the shutdown and break-even prices
Cost figures for a hypothetical firm are given in the following table. Use them for the exercises
below. The firm is selling in a perfectly competitive market.
a. Fill in the blank columns.
b. What is the minimum price needed by the firm to break even?
c. What is the shutdown price?
d. At a price of $40, what output level would the firm produce? What would its profits be?
you are thinking of setting up a cendol stall. The stall itself will cost RM200. The ingredients for each bowl of cendol will cost RM0.50. Construct a table showing your total cost, average total cost, and marginal cost for output levels varying from 0 to 10 litre of cendol. Draw the three cost curves.
(Hint: There are 16 bowls in a litre of cendol.
If the government places a P250,000 tax on luxury cars, will the price paid by consumers rise by more than P250,000, less than P250,000, or exactly P250,000?
There are four consumers willing to pay the following amounts for haircuts: Jerry: $7; Oprah: $2; Ellen: $8; and Phil: $5 There are four haircutting businesses with the following costs: Firm A: $3; Firm B: $6; Firm C: $4; and Firm D: $2 Each firm has the capacity to produce only one haircut. For efficiency, how many haircuts should be given? Which businesses should cut hair and which consumers should have their hair cut? How large is the maximum possible total surplus?
Demand and supply functions of a commodity are given respectively as quantity demanded 40 at 400, quantity supply 120 naira per 24 unit. Determine the equilibrium of quantity bought
