Economics Answers

A manager believes that the demand for his product is given by the equation P=50-Q/100.
a. what is the elasticity of demand as price decreases from price12 to price 10?
B. what is the elasticity of demand as price increases from price10 to price 12?

Find two articles from among the websites below — one which would involve a change in supply and one which would involve a change in demand.

https://www.cnn.com/
https://www.msn.com/
https://www.cbsnews.com/
https://abcnews.go.com/

For each article, answer the following questions:
Does the article discuss a change in demand or supply? Will demand or supply increase or decrease?

Use supply and demand curves to illustrate the change.

When this change occurs, what do you expect to happen to the quantity produced? What do you think will happen to the price?

1. The demand is given by P = 20 – 0.1Q, where P is the price and Q is the quantity demanded. The monopolist’s total cost is C = 120 + 2Q + 0.05Q2. Find

a. profit-maximizing price and quantity. (2)

b. deadweight loss in the monopoly profit-maximizing equilibrium. (2)

In each of the following cases, determine how much GDP and each of its components is affected (if at all):
Michael spends $700 on Christmas dinner for his employees to celebrate company's financial success in 2019.
In January 2020, Michael & Associates bought new computers for the office staff totaling $10,000. The computers were built in Germany.
The computers bought by Michael & Associates in January 2020 for the office staff were last year's (2019) model.
Ford Motors built cars worth $800 million in 2019, consumers only bought $500 million worth of cars.

Using supply and demand diagram together to illustrate the effect on the equilibrium price and quantity in the specified market my question is

Factories get closed due to coronavirus pandemic. What will happen to the market of food items

3. There are 1,000,000 smokers, each buying 1 pack of smokes a week, and only 2 tobacco firms, Fillipo Morisso & Yappon Tabaca. Each firm can produce any amount at flat cost $4 per pack, and each firm sells at a price $10 per pack. Each firm can run an advertisement campaign that costs $500,000 per week. If none runs a campaign, each firm gets 500,000 buyers. If both run a campaign, each firm gets 500,000 buyers. If one firm advertises and the other one doesn’t, the advertising one gets 600,000 buyers and the one who does not advertise gets 400,000 (i.e., 100,000 buyers switch from one firm to another because of the ads but nobody quits or starts smoking due to the ads). Put everything together: costs of production, cost of advertising, and sales for every possible combination of strategies.

a. Fill the payoffs (profits, in $ million, per week, net of ad spending) in the bi-matrix: (2)


Yappon Tabaca
Ads No ads
Fillipo Ads
Morisso No ads

The buyers’ side of the market for amusement park tickets consists of two consumers whose demand curves are shown in the diagram below.

a. Graph the market demand curve for this market.


Instructions: Use the tool provided to plot the market demand curve for prices: $36, $24 and $0 (three points total).

Instructions: Enter your response as a whole number.



b. Calculate the total consumer surplus in the amusement park market if tickets sell for $12 each. $ per year.

1. A monopolist faces a linear demand for its product and has a flat marginal and average cost of production. An innovation lowers the cost of production by $1 per unit. Use the graph to show the profit-maximizing monopolist’s choice and the changes due to the innovations.

a. How much will the price change as a result of the innovation?

b. How much will profit per unit change as the result of the innovation?

c. Summarize: who benefits from the innovation? Explain in 2-3 sentences.

What is economic growth...??

Consider the model of a market with four identical producers. Each producer has the same constant average variable cost. The aggregate demand for the product these firms produce is Y=1000.p-5. The producers choose their quantities simultaneously and the price is the highest price p at which the total quantity can be sold. The price at the equilibrium of this model is 20. What is the value of the firms’ constant average variable cost?