Question
In: Economics
Consider a market with 30 sellers and 30 buyers. Of 30 sellers, there are 10 ”high-cost” sellers with production costs of $25 per unit and 20 ”low-cost” sellers with costs of $5 per unit.
Consider a market with 30 sellers and 30 buyers. Of 30 sellers, there are 10 ”high-cost” sellers with production costs of $25 per unit and 20 ”low-cost” sellers with costs of $5 per unit. Of 30 buyers, there are 15 ”high-value” buyers with values of $30 per unit and 15 ”low-value” buyers with values of $10 per unit.
a.) Identify the demand schedule for this market.
b.) Identify the supply schedule for this market.
c.) Graph the demand and supply schedules for this market.
d.) Predict the equilibrium price and quantity in the market.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Consider a market with 22 sellers and 21 buyers. Of 22 sellers, there are 15 "high-cost"...
Consider a market with 22 sellers and 21 buyers. Of 22 sellers,
there are 15 "high-cost" sellers with production costs of $30 per
unit and 7 "low-cost" sellers with costs of $10 per
unit. Of 21 buyers, there are 14 "high-value" buyers
with values of $40 per unit and 7 "low-value" with
values of $20 per unit. For this market, identify and
graph the demand and supply curves. Finally, predict the
equilibrium price and quantity in the market.
In a market there are 10 sellers and 4 buyers and the opp cost for seller...
In a market there are 10 sellers and 4 buyers and the opp cost
for seller is $3.00 and opp cost for the buyer is $10.00. Then what
will be the price that trade will take place at? Explain why. What
will a price that buyers will say NO to (if any)? What will be a
price that seller will say NO (if any)?
Consider a market for used cars. There are 100 sellers and 100 buyers. The sellers know...
Consider a market for used cars. There are 100 sellers and 100
buyers. The sellers know the qualities of their cars, but the
buyers only know that the quality θ of each used card is uniformly
distributed over interval [0, 1]. The seller’s value of a car with
quality θ is θ. (Thus, market supply is S(p) = 100p for 0 ≤ p ≤ 1
and S(p) = 100 for p > 1.) Each of 50 buyers values a car...
Consider a local used car market with an unlimited number of buyers, 50 sellers of high-quality...
Consider a local used car market with an unlimited number of
buyers, 50 sellers of high-quality cars, 30 sellers of
medium-quality cars and 20 sellers of low-quality cars. Each seller
offers up to 1 car for sale. Sellers of high-quality cars value
their car at $15,000, sellers of medium-quality cars at $7,000, and
sellers of low-quality cars at $3,000. Buyers value high-quality
cars at $20,000, medium-quality cars at $10,000, and low-quality
cars at $5,000.
Answer the following questions according to...
In the Whine Company, it costs $30 per unit ($20 variable and $10 fixed) to make...
In the Whine Company,
it costs $30 per unit ($20 variable and $10 fixed) to make a
product that normally sells for $55. A foreign wholesaler offers to
buy 3000 units at $35 each. The Whine Company will incur special
shipping costs of $2 per unit.
Required:
Assuming that the Whine
Company has excess operating capacity, What is the impact on profit
for the year if Whine Company accepts the special order? Show
computations..
Do you agree with the decision...
When the price is $30 per unit, buyers in a market are willing to buy 400...
When the price is $30 per unit, buyers in a market are willing
to buy 400 gadgets and when the price is $60 per unit, they are
only willing to buy 100 gadgets. When the price is $30 per unit,
sellers in a market are only willing to sell 150 gadgets and when
the price is $60 per unit, they are willing to sell 225 gadgets.
Assume (1) the economic environment of buyers (their income, tastes
or preferences, other prices,...
When the price is $30 per unit, buyers in a market are willing to buy 400...
When the price is $30 per unit, buyers in a market are willing
to buy 400 gadgets and when the price is $60 per unit, they are
only willing to buy 100 gadgets. When the price is $30 per unit,
sellers in a market are only willing to sell 150 gadgets and when
the price is $60 per unit, they are willing to sell 225 gadgets.
Assume (1) the economic environment of buyers (their income, tastes
or preferences, other prices,...
When the price is $30 per unit, buyers in a market are willing to buy 400...
When the price is $30 per unit, buyers in a market are willing
to buy 400 gadgets and when the price is $60 per unit, they are
only willing to buy 100 gadgets. When the price is $30 per unit,
sellers in a market are only willing to sell 150 gadgets and when
the price is $60 per unit, they are willing to sell 225 gadgets.
Assume (1) the economic environment of buyers (their income, tastes
or preferences, other prices,...
When the price is $30 per unit, buyers in a market are willing to buy 400...
When the price is $30 per unit, buyers in a market are willing
to buy 400 gadgets and when the price is $60 per unit, they are
only willing to buy 100 gadgets. When the price is $30 per unit,
sellers in a market are only willing to sell 150 gadgets and when
the price is $60 per unit, they are willing to sell 225 gadgets.
Assume (1) the economic environment of buyers (their income, tastes
or preferences, other prices,...
Cypress, which uses the high-low method, had an average cost per unit of $5 at its...
Cypress, which uses the high-low method, had an average cost per
unit of $5 at its lowest level of activity when sales equaled
10,000 units and an average cost per unit of $3.25 at its highest
level of activity when sales equaled 24,000 units. Cypress would
estimate fixed costs as:
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Calculate the heat flux (W / m2) through a composite wall made of material A whose...
- Assuming normal heptane and normal octane to form ideal solutions, do the following: d) Calculate the...
- The protections from the security software must continue when the device is taken off the network,...
- Differences between viruses that infect eukaryotes and prokaryotes. Describe the genome classification of viruses that infect...
- What impacts did the Fed’s monetary policies have on the monetary markets from 2007-2011? Explain.
- Construct a capacitor by filling a paper cup with water. What is the analog of voltage...
- The Quarles Distributing Company manufactures an assortment of cold air intake systems for high-performance engines. The...
ADVERTISEMENT