Economics Answers

Sailright Inc. manufactures and sells sailboards. Management believes that the price elasticity of demand is -3.0. Currently, boards are priced at 500 USD and the quantity demanded is 10,000 per year.
a) If the price is increased to 600 USD, how many sailboards will the company be able to sell each year.
b) How much will total revenue change as a result of the price increase?

It is known that quantity demanded decreases by two units for each $1 increase in price. At a price of $5, quantity demanded is ten units.
a) What will be the quantity demanded is price is zero?
b) Write and equation for quantity demanded as a function of price.
c) Write an equation that expresses price as a function of quantity.
d) Write an equation for total revenue.

Detailed Explanation of the following answer is required if we have given the problem as
If the total revenue function is TR=100,000Q-10Q^2 and the total cost function is TC=10,000+20Q+Q^2, determine
A) the output rate that will maximize total royalty revenue and the amount of royalty income hat smith and Wesson would receive. B) the output rate that would maximize profit to the publisher.
Based on this rate of output, what is the amount of royalty income smith and Wesson would receive? Compare the royalty income of smith and Wesson to that determined in part
Solution is given as below:
A) TR will be maximized if Q = 0, then TR = 100,000 and royalty = 100,000 x 0,15 =

=15,000

B) TC will be minimum if Q = 0, then TC = 90,000 and royalty = 100,000 x 0,15 =

= 15,000.

The price elasticity of demand for good X is known to be twice that of good Y. Price of X falls by 5%. Find the % change in X & Y quantities.

How to find out the Price from any total Revenue Function, say for example TR=100,000Q-10Q^2, this is the given total revenue function, please elaborate how to derive out the price from the given total revenue function

How to derive the price from TR=100,000Q-10Q^2

3. The Municipal Corporation of a small college town decides to regulate rents in order to reduce student living expenses. Suppose the average annual market-clearing rent for a two bedroom apartment had been Rs.10000 per month, and rents were expected to increase to Rs.15000 within a year. The Municipal Corporation limits rents to their current Rs.10000-per-month level. Draw a supply and demand graph to illustrate what will happen to the rental price of an apartment after the imposition of rent controls. Do you think this policy will benefit students? Why or why not?

Suppose the Jamaica biscuit producing company, located in Kingston, has 100 ovens and the life of each oven is 5 years, and 20 ovens must be replaced each year.
If demand for the biscuits is constant, how many ovens will be replaced each year?

Following a rise in uncertainty leading to a fall in investment, what would be the FEDs appropriate monetary policy response assuming they want to hold interest rates constant? Demonstrate this using the IS LM model.

Does this mean interest rates must increase to previous levels using contraction policy?

Based on the article Nearshoring in Latin America, what are the short- and long-term implications of nearshoring given the current economic conditions?

Watch Silicon Border video and discuss why businesses should consider moving to Silicon Border. What are some of the drawbacks that companies moving to Silicon Border should be aware of and need to manage? (site is siliconborder.com)

What are the implications of the above article and video for countries in Eastern Europe in relation to multinationals operating in Western and Northern Europe?