Please put Hayes Renea, my name on each chapter, Economics, Market Forces : Damand and Supply End of Chapter Problems. Questions for Chapter# 2. Explain the laws of demand and supply, and identify factors that cause demand and supply to shift. Do these problems 1. The X - Corporation produces a good ( called X) that is a normal good. Its competitor, Y - Corp.. makes a substitute good that it marke
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Please put Hayes Renea, my name on each chapter, Economics, Market Forces : Damand and Supply End of Chapter Problems. Questions for Chapter# 2. Explain the laws of demand and supply, and identify factors that cause demand and supply to shift. Do these problems 1. The X - Corporation produces a good ( called X) that is a normal good. Its competitor, Y - Corp.. makes a substitute good that it markets under the Y. Good Y is an inferior good. A. How will the demand for good X change if consumers incomes decrease? B. How will the demand for good Y change if consumers income increases? C. How will the demand for good X change if the price of good Y increases? D. Is good Y a lower - quality product than goid X? Explain.
Question 3. Suppose the supply function for product X is given by Qsx = - 30 + 2Px - 4PZ'
A. How much of product X is produced when Px = $600 and Pz = $60?
B. How much of product X is produced when Px = $80 and Pz = $60?
C. Suppose Pz = $60. Determine the supply function and inverse supply function for good X. Graph the inverse supply function. Next Calculate consumers surplus and producer surplus and describe what they mean. 5. The demand curve for product X is guven by Qdx = 300 - 2Px' A. Find the inverse demand curve. B. How much consumer surplus do consumers receive when Px = $45? C.How much consumer surplus do consumers receive when Px = $30? D. In general, what happens to the level of consumers surplus as the price of a good falls? Next..Explain price determination in a competitive market, and show how equilibrium changes in responss to change in determinants of demand and supply. Questions, 6. Suppose demand and supply are given by Qd = 60 - P and Qs = P - 20. A. What are the equilibrium quantity and price in thus market?
B. Determine the quantity demand, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed innthus market. C. Determine the quantity demand, the quantity supplied, and the magnitude of the shortage if a price ceiling of $32 is impised in thus markey. Also, determine the full ecominic price paid by consumers. Next..Explain and illustrate how excise taxes, ad valorem taxes, price floors, and price ceilings impact the functioning of a market. Quest 2. Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: A The price of input A decreases. B. An excise tax of $3 is imposed on good X.
C. An ad valorem tax of 7 percent is imposed on good X.
D. A technological change reduces the cost of producing additional units of goid X. Ques 18..From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on non customers who make $12 million in withdrawals from other banks ATM machines. On average , noncustomerd earn a wage of $24 per hour and pay ATM fees of $3.00 per transaction. It is estimated that banks would be willing to maintain services for 5 million transactions at $ 1.25 per transaction, while noncustomers would attempt to conduct 19 million transactions at that price. Estimates suggest that, for every 1 million gap between the desired and available transactions, a typical consumer will have to spend an extra minute traviling to another machine to withdraw cash. Based on this information, use a graph ti carefully illustrate the impact of legislation that would would place a $1.25 cap in the fees banks can charge for noncustomer transactions.
5. Apply supply and demand analysis asba qualitive forecasting tool to see the big " picture" in competitive markets. Quest 11. You are the manager of a midsize company that assembled personal compputers. You purchase most components - such as randombaccess memory (RAM) ---- in a competitive market. Based on your market research, consumers earning over $80,000 purchase 1.5 times more RAM than consumers with lower incomes. One morning , you pick up a copy of the Wall Street Journal and read an article indicating that input components for RAM are expected to rise in price, forcing manufacturers..to produce RAM at higher unit cost. Based on this information, what can you expect to happen to the price you pay for random access memory? Would your answer change if, in addition to thus change in RAM input prices, the article indiczted that consumer incomed are expected to fall over the next two years as the economy dips into recession? Explain.
Quest 19...Rapel Valley in Chile is reowned for its ability yo produce high -- quality wine at a fraction of the cost of many other vineyards around the world. Rapel Valley produces over 20 million bottles of wine annually , of which 5 million are exported to the United States . Each bottle entering the United States is subjected to $0.50 per bottle excise tax, which generates about $2.5 million in tax revenues. Strong La Nina weather patterns have caused unusually cold temperatures, devastating many of the wine producers in that region of Chile. How will La, Nina affect the price of Chilean wine? Assuming La, Nina does not impact the California wine priducing region, how will La Nina impact the market for California Wines ? Sources Managerial Economics and Business Strategy. By Michael R. Baye. Jefferey T. Prince Text book
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