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Suppose the demand equation for computers by Teetan Ltd for the year 2017 is given by Qd= 1200-P and the supply equation is given by Qs= 120+3P. Find equilibrium price and analyse what would be the excess demand or supply if price changes to Rs 400 and Rs 120.
Hello, I have done these problems on my own to the best of my knowledge and just wanted to confirm my answers. If I got any wrong could you explain why it's wrong?
Q1: If the total fixed cost curve shifts upward the firm's average fixed cost curve will also shift upward.
True or False?
Answer: True
Q2: In the short run time period, all inputs to the production process can be varied as long as the output remains constant.
True or False?
Answer: True
Q3: The marginal product curve does not exist in the long run time period.
True or false?
Answer: False
Q4: Average total cost is the total fixed cost minus total variable cost.
True or False?
Answer: False
Q5: While moving downward along the average total cost curve, as quantity of output is increasing, the marginal cost of production is always less than the average total cost of production.
True or False?
Answer: False
As a Sales Manager, explain and illustrate why it is advisable to drop the price of a product in order to increase sales revenue when the product has elastic demand
Kelby Jack Kate
Price Units Produced
$5 12 8 4
$4 11 6 3
$3 9 4 2
$2 5 2 1
$1 2 1 0
If the market sees 15 units of Good Y exchanged, what is the likeliest price in the market?
