Question
In: Economics
1. The following is the assumed demand schedule for an ice cream consumer in Bronx, New...
1. The following is the assumed demand schedule for an ice cream consumer in Bronx, New York: Demand Schedule Price Quantity Demanded per Year (thousands of cones) $2.25 12 $2.00 16 $1.75 20 $1.50 24 $1.25 28 $1.00 32
(A). Using the information above, draw a graph showing the consumer’s demand curve for Ice cream.( B). Explain the differences between a change in quantity demanded of ice cream and a Change in the demand of ice cream. C. Would a change in the price of ice cream cause a change in the demand for Ice cream? Explain why or why not?
2 (A) what are the supply schedule and the supply curve and how are they related? In our last Class, we explained two reasons why the supply curve slopes positively. State And explain a third reason.
B. Does a change in producers’ technology lead to a movement along the supply curve or to A shift in the supply curve? Does a change in price lead to a movement or to a shift in the Supply curve?
C. Define the equilibrium of a market. Describe the forces that move a market toward its Equilibrium.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
1. Consider the market for ice-cream. Compare the price elasticity demand for ice cream in (i)...
1. Consider the market for ice-cream. Compare the price
elasticity demand for ice cream in
(i) Winter vs (ii) Summer.
Show your answers in two graphs.
2. For the market for oranges, when price rises from $4 to $5,
quantity demanded drops from 8 to 7.
(a) Calculate the price elasticity of demand.
(b) Is the demand for oranges elastic?
If the price of ice-cream falls what happens to the demand for ice-cream? It rises. If...
If the price of ice-cream falls what happens to the demand for
ice-cream?
It rises.
If falls.
Nothing.
It rises but then falls back as we buy more.
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THE SCENARIO: 31 Scoops Ice Cream a new concept in gourmet ice
cream is finishing up its business plan for upcoming Venture
Capital rounds and just needs to complete its break-even analysis
to be done. In order to get started with its ice cream business, it
will need to purchase some state-of-the-art ice-cream manufacturing
equipment valued at $50,000, which they will be able to purchase at
a 30% discount. In addition, they will need to rent several store
locations for...
Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a...
Demand for walnut fudge ice cream at the Sweet Cream Dairy can
be approximated by a normal distribution with a mean of 17 gallons
per week and a standard deviation of 3.2 gallons per week. The new
manager desires a service level of 90 percent. Lead time is two
days, and the dairy is open seven days a week. (Hint: Work in terms
of weeks.)
a-1. If an ROP model is used, what ROP would be consistent with
the desired...
Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a...
Demand for walnut fudge ice cream at the Sweet Cream Dairy can
be approximated by a normal distribution with a mean of 21 gallons
per week and a standard deviation of 3.5 gallons per week.
The new manager desires a service level of 98 percent. Lead time
is two days, and the dairy is open seven days a week. If an ROP
model is used, what ROP would be consistent with the desired
service level? ( Hint: Work in terms...
The market for ice cream is a perfectly competitive market and has the following inverse demand...
The market for ice cream is a
perfectly competitive market and has the following inverse demand
curve and inverse supply curve, where p is $ per gallon and Q is
billions of gallons of ice cream per year: Demand: p = 16 – 5Q;
Supply: p = 4 + 2.5Q
a. Provide a graph
of the market for ice cream. Calculate and show the equilibrium
price and quantity (in billions of gallons) in the market.
b. Calculate the
consumer surplus...
Before purchasing the new ice cream truck, Cowboy Ice Cream, Inc. (CIC) considered eliminating the Retail...
Before purchasing the new ice cream truck, Cowboy Ice Cream,
Inc. (CIC) considered eliminating the Retail Division. This was
mainly prompted by Frank’s (W.T. fellow shareholder) concern that
the income statements for the divisions for May-September 2017
(when the Retail Division is at full operation) imply that
profitability could be improved if the Retail Division were
eliminated.
Division
Retail
Wholesale
Sales
$60,000
$160,000
Cost of goods sold
(18,000)
(90,000)
Variable operating expenses required to operate each
division
(31,500)
(15,050)
Contribution...
Kilo-cone is an ice-cream store that sells 1kg ice cream cones, and has the following information:...
Kilo-cone is an ice-cream store that sells 1kg ice cream cones,
and has the following information:
Estimated monthly Sales (in cones)
January to March: 45,000 per
month
April to September: 70,000 per month
October to December: 20,000 per month
Ice cream cones sell for $1 each from January 1st to
March 31st, and $3 each during the rest of the year.
Half of the sales are paid in cash, and the other half is on
account. 90% of the sales...
Complete question 1 through A to D Part A. Dairy Days Ice Cream sells ice cream...
Complete question 1 through A to D
Part A. Dairy Days Ice Cream sells ice cream cones for $4.00 per
customer. Variable costs are $2.00 per cone. Fixed costs are
$2,400
per month. What is Dairy Days' contribution margin ratio?
A.252%
B.75%
C.58%
D.50%
Part B. The managerial accountant at Right Stripes T−Shirt
Company reported the following information: The Right Stripes
T−Shirt Company Contribution Margin Income Statement
Sales Revenue
1818 ×
units
$17,100
Variable Expenses
$9,900
Contribution Margin
$_____
Fixed...
The demand for ice cream is given by Q D = 20 – 2P, measured in...
The demand for ice cream is given by Q D = 20 – 2P, measured in
gallons of ice cream. The
supply of ice cream is given by Q S = 4P – 10. Suppose that the
government legislates a $1 tax on
a gallon of ice cream, to be collected from the seller.
a) As a result of the tax, what is the price paid by buyers?
b) What is the price received by sellers?
Hint: You need to...
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