Suppose the market demand for dolls is given by the following equation: Qd = 100 -...

Suppose the market demand for dolls is given by the following equation:

Qd = 100 - 1.5xP + 0.6xP(sub) - 0.4xP(comp) + 8xInc, where Qd = number of units (dolls) demanded per period P = price per doll P(sub) = the price of a substitute good P(comp) = the price of a complement good Inc = an index of consumers income At present P = $10, P(sub) = $5, P(comp) = $15, & Inc = 41. As a result the income elasticity of demand is equal to:

Expert Solution

Rahul Sunny answered 2 years ago

Demand is given by the equation QD=100-P; supply is given by QS= 4P Suppose the world...

Demand is given by the equation QD=100-P; supply is given by QS= 4P Suppose the world price of each unit is $25. Now assume that this economy is open to world trade. How many units will they import or export? Calculate the consumer surplus, producer surplus and total surplus. Help me solve, A Continue to assume that this economy is open to world trade. Suppose the government enacts a tariff off $2 per pound of cocoa beans. Calculate the consumer...

The market demand for a hamburger is given by the equation Qd=6-0.5P Derive the market demand...

The market demand for a hamburger is given by the equation Qd=6-0.5P Derive the market demand schedule and the toral revenue if the price per hamburger takes the following values: $12, $10, $6, $6, $4, $2, $0. Using this information about demand and the total revenue, draw the demand and TR revenue curves. Use the point elasticity formula, compute the price elasticity of demand at each hamburger price and show the relationship between the price elasticity of demand and the...

Suppose Market demand is given as Qd = 60 – 2P. Market supply is given as...

Suppose Market demand is given as Qd = 60 – 2P. Market supply is given as Qs = 2P Also assume ATC = 0.4Q. a. How many units of the product would the perfectly competitive market supply? What would the equilibrium price be? b. What are the profit maximizing price and quantity if this market is a monopoly? c. Calculate the dead-weight loss created if this market started off as perfectly competitive but then became a monopoly.

1. Given: Suppose you are given the following market demand function for electric cars: QD = ...

1. Given: Suppose you are given the following market demand function for electric cars: QD = I − P where P is the price per unit of electric cars and I is consumer income. And given the market supply function for electric cars: QS = 4*P − 10*w where P is the price per unit of electric cars, w is the hourly wage rate the firm pays to workers. Suppose, as a baseline, I = 50000 and w = 500....

Suppose the market demand is QD = 200−P and market supply is QS = 4P−100. A....

Suppose the market demand is QD = 200−P and market supply is QS = 4P−100. A. Suppose the government imposes a tax of t = 5 on producers. What is the incidence of the tax on consumers? Producers? B. What is the deadweight loss of the tax?

Consider the following market. Demand is given by QD = 5 − P where QD is...

Consider the following market. Demand is given by QD = 5 − P where QD is the quantity demand and P is the price. Supply is given by QS = P/2 where QS is the quantity supplied. a. What is the market equilibrium quantity and price? b. Calculate consumer, producer, and total surplus. Depict your answer in a graph. c. Suppose the government imposes a price floor of P = 4. Calculate the consumer surplus, producer surplus, and deadweight loss....

Let the market demand for carbonated water be given by QD = 100 − 5P. Let...

Let the market demand for carbonated water be given by QD = 100 − 5P. Let there be two firms producing carbonated water, each with a constant marginal cost of 2. a)What is the market equilibrium price and quantity when each firm behaves as a Cournot duopolist choosing quantities? What profit does each firm earn? b)Sketch the Cournot response functions for firm 1 and firm 2. c)What is the market equilibrium price and quantity when each firm behaves as a...

Given the demand equation for good X given by: Qd= 1000 -50Px + 20Py +.5M. Suppose...

Given the demand equation for good X given by: Qd= 1000 -50Px + 20Py +.5M. Suppose Px=10, Py=25, and M=1000. A) Find the own price elasticity of demand, the cross price elasticity of demand, and the income elasticity of demand

The annual demand for liquor in a certain state is given by the following equation: QD...

The annual demand for liquor in a certain state is given by the following equation: QD = 500,000 – 20,000P where P is the price per gallon and QD is the quantity of gallons demanded per year. The supply of liquor is given by the equation: QS = 30,000P a.) Solve for the equilibrium annual quantity and price of liquor. Suppose that a $1.00- per-gallon tax is levied on the price of liquor received by sellers. Use both graphic and...

Consider a competitive market with demand and supply curves given by Qd(p) = 100 - P...

Consider a competitive market with demand and supply curves given by Qd(p) = 100 - P & Qs(P) = P If the government wanted to charge a constant per unit tax of T per unit, what is the maximum amount of tax revenue the government can generate?

Question