Draw a price setting and demand curve for a situation where the buyer sets the price....

Draw a price setting and demand curve for a situation where the buyer sets the price. Explain what it shows.

Draw a price ceiling and explain what it does. Be sure to include its effects on price and quantity.

List at least 5 reasons why an industry or company would want to vertically integrate.

Expert Solution

Rahul Sunny answered 8 months ago

2. If know a market has price elastic demand. will draw the demand curve with a....

2. If know a market has price elastic demand. will draw the demand curve with a. A relatively flat negative slope b. A relatively steep negative siope c. A relatively flat positive slope d. A relatively steep positive slope Suppose I tell you that the price elasticity demand for oranges is around 1.5, for bananas is around 0.7 for melons is of healthier (by eating more fruit and can only aff around 0. 3 We want people to eat to...

Draw a demand curve that shows an decrease in price (from P1 to P2) and the...

Draw a demand curve that shows an decrease in price (from P1 to P2) and the corresponding change in quantity demand (from Q1 to Q2) leaving the revenue unchanged. Use the graph to show the initial and the final revenue. Make sure that the area indicating the revenue is, in fact, constant. Add a (simple) scale to your axes and calculate the initial revenue, the loss and gain in revenue due to the price increase, and the final revenue.

Draw a demand curve that shows an increase in price (from P1 to P1) and the...

Draw a demand curve that shows an increase in price (from P1 to P1) and the corresponding change in the quantity demand (from Q1 to Q2). Use the graph to show the initial and the final revenue. Make sure that that area indicating the revenue is, in fact, decreasing. Add a (simple) scale to your axes and calculate the initial revenue, the loss and gain in revenue due to the price increase, and the final revenue.

Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve...

Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve is given by P = 6 − Q. If each firm's cost function is Ci(Qi) = 6 + 2Qi, then each firm will symmetrically produce _________ units of output and earn ___________. Multiple Choice 2 units; profits of $2 4 units; profits of $6 4 units; losses of $2 2 units; losses of $6

The demand curve for cameras is Q=400-2P where P is the price of a camera and...

The demand curve for cameras is Q=400-2P where P is the price of a camera and Q is the number of cameras sold per week. Answer the following questions. If the vendor has been selling 120 cameras per week, how much revenue has she been collecting? What is the price elasticity of demand for cameras? Does the law of demand hold? If the vendor wants to generate more revenue, should she raise or lower the price of cameras?

A monopolist faces a demand curve of Q = 164 – P, where P is price...

A monopolist faces a demand curve of Q = 164 – P, where P is price and Q is the output produced by the monopolist. What choice of output will maximize revenue? Group of answer choices 70 74 82 86 if monopolist produces good X and faces a demand curve X = 112 - 2P, where P is price. What is the monopolist's marginal revenue as a function of good X? Group of answer choices 44 - X 56 -...

A monopoly faces the demand curve P = 100 -.01Q, where P is price and Q...

A monopoly faces the demand curve P = 100 -.01Q, where P is price and Q is weekly production measured in cents per unit. The firm’s cost function is C = 50Q + 20,000. Assuming the firm maximizes profit,a. What is the level of production, price, and total profit per week?b. If the government decides to put a tax of 20 cents per unit ON THE BUYERS of this product, what will be the new level of production, price the...

Answer A- H please a) Draw a Supply Curve and the Demand Curve for the Sugar...

Answer A- H please a) Draw a Supply Curve and the Demand Curve for the Sugar Label the supply S1 and the demand D1. Label on the vertical axis P for the equilibrium price and label the horizontal axis Q for the equilibrium quantity. We currently have the sugar market in equilibrium at a price of $3 per pound and 100,000 pounds. Now assume that the state government just announced a new price floor program for the sale of sugar....

4. Carefully draw the demand curve for an individual with no insurance and the same demand...

4. Carefully draw the demand curve for an individual with no insurance and the same demand curve for a person with insurance paying for 75% of the medical expenses of that individual. Be sure to describe how you construct the “75% insured” demand curve using the uninsured demand curve as a reference.

-Define Profit, using equations(Using the average cost curve) -Draw a graph where the oil price =...

-Define Profit, using equations(Using the average cost curve) -Draw a graph where the oil price = $52/ barrel, Quantity supplied max = 32 barrels and Average Cost(@Q=32) = $54 -What is the profit this firm earns?

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