Question
In: Economics
Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market...
Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex are shown below.
a. Fill in the table for the missing values.
b. Which buyer demands the least at a price of $5? The most at a price of $7?
c. Which buyer’s quantity demanded increases the most when the price is lowered from $7 to $6?
d. Which direction would the market demand curve shift if Tex withdrew from the market? What if Dex doubled his purchases at each possible price?
e. Suppose that at a price of $6, the total quantity demanded increases from 19 to 38. Is this a “change in the quantity demanded” or a “change in demand”?
|
Price Per Candy |
Individual Quantities Demanded |
Total Quantity Demanded |
|||||
|
Tex |
Dex |
Rex |
|||||
|
$ 8.00 |
3 |
+ |
1 |
+ |
0 |
= |
|
|
$ 7.00 |
8 |
+ |
2 |
+ |
= |
12 |
|
|
$ 6.00 |
+ |
3 |
+ |
4 |
= |
19 |
|
|
$ 5.00 |
17 |
+ |
+ |
6 |
= |
27 |
|
|
$ 4.00 |
23 |
+ |
5 |
+ |
8 |
= |
|
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market...
Suppose there are three buyers of candy in a market: Tex, Dex,
and Rex. The market demand and the individual demands of Tex, Dex,
and Rex for candy are given in the table below.
a. Fill in the table for the missing values.
Price
per Candy
Tex
Qd
Dex
Qd
Rex
Qd
Total Quantity Demanded
$16
3
3
2
15
5
4
15
14
5
10
22
13
9
14
29
12
11
7
18
b. (i) Which buyer demands...
1. Suppose there are three buyers of candy in a market: Tex, Dex and Rex. The...
1. Suppose there are three buyers of candy in a market: Tex, Dex
and Rex. The market demand and the individual demands are shown
below: Price per candy Individual quantities demanded Market demand
Tex Dex Rex $8 3 1 0 4 $7 8 2 2 12 $6 12 3 4 19 $5 17 4 6 27 $4 23
5 8 36 (1) Based on the individual demand information and market
demand information offered, FILL the missing values in the table...
Tex-Mex by Rex, Inc. is planning its yearly budget and has the following potential independent proposals:...
Tex-Mex by Rex, Inc. is planning its yearly budget and has the
following potential independent proposals: PROJECT OUTLAY IRR A
$5,000,000 11.0% B $5,000,000 18.0% C $8,000,000 16.0% D
$12,000,000 10.5% E $12,000,000 12.0% The firm’s capital structure
shown below is considered optimal and will be maintained: Debt
$80,000,000 Preferred Stock $20,000,000 Common Equity $100,000,000
The firm has a marginal tax rate of 35% and has $5,000,000 of
retained earnings available for investment. Four years ago, Tex-Mex
by Rex, Inc....
Suppose we are studying the market for beer; the market for candy is perfectly competitive. There...
Suppose we are studying the market for beer; the market for
candy is perfectly competitive. There are two types of firms that
produce beer, Type A firms and Type B firms. The cost curve of type
A firm is represented by CA(y) = y^2 + 5, and the cost curve of a
type B firm is represented by CB(y) = ((y^2) / 2 ) + 10. In the
short-run, there are 10 Type A firms in the market, and 15...
Suppose the incomes of buyers in a market for a particular normal good decrease and there...
Suppose the incomes of buyers in a market for a particular
normal good decrease and there is also a reduction in input prices.
Graphically show what happens to the demand and supply curve, and
comment on what would happen to the equilibrium price and quantity
in this market. Please label all parts of your graph to receive
full points.
Suppose that the number of buyers in a market falls, while the wages that companies...
Suppose that the number of buyers in a market
falls, while the wages that companies (in this market) pay to their
employees increase by 20%. What would we expect to happen in the
market?
A. The equilibrium price would increase, but the impact on the
amount sold in the market would be ambiguous.
B. The equilibrium price would decrease, but the impact on the
amount sold in the market would be ambiguous.
C. Equilibrium quantity would decrease, but...
Suppose the firm knows that, there are three types of buyers: ?? = 100 − 4?,??...
Suppose the firm knows that, there are three types of buyers: ??
= 100 − 4?,?? = 400 − 6?, and ?? = 300 − 10?. The firm’s
ATC=MC=5.
Suppose the firm operates as a single price monopoly, what will
be the market price, market quantity, and profit?
What will be consumer surplus, producer surplus, and deadweight
loss? Draw a graph!
Under which conditions can this firm use segmented price
discrimination?
Suppose that the firm conditions from c) hold, what...
The market for candy is perfectly competitive, and the current market price of candy is $10....
The market for candy is perfectly competitive, and the current
market price of candy is $10. A particular firm has a short-run
marginal cost of production of MC = 0.2q, where q is the number of
bicycles produced by the firm.
a. If it is optimal for the firm to produce a positive amount of
output in the short run, how much should it produce?
b. Suppose that the firm has fixed costs of $30, and its average
variable cost...
Suppose for the market for housing that both buyers and sellers expected the price to increase....
Suppose for the market for housing that both buyers and sellers
expected the price to increase. Which of the following would
result?
Group of answer choices
Price rises and quantity rises
Price falls and quantity is unclear
Price rises and quantity is unclear
None of the above
Scenario: Suppose a competitive market has ten buyers and ten sellers.
buyerreservation value of buyer ($)sellerreservation value of seller($)11511214223133441246511586106107971288814979161061018Scenario: Suppose a competitive market has ten buyers and ten
sellers. The product exchanged in this market is beach hats, which
are indivisible. The following table shows the reservation values
for both buyers and sellers.a) Refer to the scenario above. If the market is perfectly
competitive, the equilibrium price of a hat is?b) Refer to the scenario above. If the market is perfectly
competitive, the equilibrium quantity of hats is?
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