Search & Filtering
The manager of a Cape Town superette carries a stock of jive soft drinks. The country has experienced an economic recession which yields an anticipated income decrease of 6%.
As a result, the income elasticity of demand for this product is estimated to be - 2.5.
Calculate the percentage change in the quantity of your soft drink orders to accomodate the new demand without a surplus or shortage of inventory.
How the family farm utilize the limited resources to fulfill their needs in simple economy
Tropical Cable and Conductors Ltd can sell x items per day at a price of p GH¢ each, where
p =125 – 5x/3 . The cost of production for x items is 500 + 13x +0.2x2
1. Find the marginal cost function and the total revenue function
2. Find how much they should be produced to have a maximum profit.
3. Assuming that all items produced can be sold. What is the maximum profit?
4. How much should be produced to breakeven?
5. Calculate the price that maximizes profit.
6. Compute the price elasticity of demand for the firm’s product at the profit maximizing output level.
7. As a consultant advise the firm on its pricing policy.
8. The government imposes a per unit tax on the firm, calculate:
a. the new profit maximizing level of output.
b. the new maximum profit.
What are some areas where it makes more sense that households might optimize and where might they satisfice instead? What factors about a given choice do you think might influence how close a household comes to economically-rationally optimization?
Love Econ shoes factory has the total cost function of 𝑇𝐶(𝑠)=500+3𝑠+5𝑠2.
Please complete the following:
(a) Total Variable Costs:
(b) Total Fixed Costs:
(c) Average Variable Costs:
(d) Average Fixed Cost:
(e) Average Total Costs:
(f) Marginal Costs:
(g) At what amount of output is average total cost minimized?
(h) Draw total fixed cost curve when Love is producing 300,000 units of shoes.
Remaining Question of Mini Case study salmon (trout) fishing
Good weather shifts in supply
Price per pound | Quantity supplied in 1999 | Quantity supplied in 2000 | Q.Demanded
$2.00 80 400 840
$2.25 120 480 680
$2.50 160 550 550
$2.75 200 600 450
$3.00 230 640 350
$3.25 250 670 250
$3.50 270 700 200
A). Draw a demand and supply model representing the situation before the economic event took place.
B). Decide whether the economic event being analyzed affects demand or supply.
C). Decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
D). Identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity.
E). What does those numbers mean exactly?
Mini Case Study
salmon (trout) fishing
Good weather shifts in supply
In the summer of 2000, weather conditions were excellent for commercial salmon fishing off the California coast. Heavy rains meant higher than normal levels of water in the rivers, which helped the salmon to breed. Slightly cooler ocean temperatures stimulated the growth of plankton—the microscopic organisms at the bottom of the ocean food chain—providing everything in the ocean with a hearty food supply. The ocean stayed calm during fishing season, so commercial fishing operations did not lose many days to bad weather. How did these climate conditions affect the quantity and price of salmon?
Dear Sir/Ma'am remaining part of this Case Study in next question
Elasticity of Demand: A public health issue that impacts the cost of health care individually and on a societal level is that of obesity. One of the public policy tools that policy makers have is to impose taxes to impact prices and ultimately change consumption levels of products that contribute to obesity. Sugar soda (or pop, as many say in Minnesota) is one of these products. If policy makers know the elasticity of demand for a product, they may be able to choose a tax level to raise the price enough to impact the choice to purchase soda. During a three-month period, scanner data (from grocery stores, for example) was collected on soda purchases. The price of a case of soda (24 cans) increased from $5.99 to $7.99. As a consequence, during this three-month period the total quantity of soda purchased in the region decreased from 4,395 cases per day to 2,488 cases per day.
Based on the Freakonomics podcast: "No Stupid Questions."What are some areas where it makes more sense that households might optimize and where might they satisfice instead? What factors about a given choice do you think might influence how close a household comes to economically-rationally optimization?
Suppose that Sandy can produce 10 economic reports or make 2 sales calls. Suppose Tim can produce 2 economic reports or make 1 sales call. Which of the following is CORRECT?
- The opportunity cost for Sandy of producing one sales call is 10 economics reports.
- The opportunity cost for Tim of producing one economics report is 2 sales calls.
- The opportunity cost for Tim of producing one sales call is 1/2 of an economics report.
- The opportunity cost for Sandy of producing one economics report is 1/5 of a sales call.
