Business, 14.12.2021 14:00 auty2925

Suppose the supply and demand for wheat is given by: Supply: Qs = 1800 + 240 P Demand: Qd = 2550 + 10I – 266P Where P= the price per bushel of wheat and I= income. The current value of I is 100 A. Find the current equilibrium price and quantity of wheat sold in the market place
B. Find the equilibrium price and quantity if income increases to 150
C. Show the change in equilibrium using a standard supply and demand curve
D. Calculate income elasticity at I= 150 and equilibrium price and quantity
E. What is a type of good (normal or inferior)? Why?
2. What is the difference between a change in the quantity demanded and a shift in the demand curve?
3. A rational consumer spends all of her income on two goods: Apple and Banana. Suppose the last dollar spent on Apple increased her total utility from 60 utils to 68 utils and the last dollar spent on Banana increased her total utility from 25 utils to 29 utils. If the price of a unit of Apple is 2 Birr, what is the price of a unit of Banana at equilibrium?
4. Given utility function U= where PX = 12 Birr, Birr, PY = 4 Birr and the income of the consumer is, M= 240 Birr.
A. Find the utility maximizing combinations of X and Y.
B. Calculate marginal rate of substitution of X for Y (MRSX, Y) at equilibrium and interpret your result.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 18:00

In which job role will you be creating e-papers, newsletters, and periodicals?

Answers: 1

Answer

Business, 22.06.2019 21:20

Rediger inc., a manufacturing corporation, has provided the following data for the month of june. the balance in the work in process inventory account was $28,000 at the beginning of the month and $20,000 at the end of the month. during the month, the corporation incurred direct materials cost of $56,200 and direct labor cost of $29,800. the actual manufacturing overhead cost incurred was $53,600. the manufacturing overhead cost applied to work in process was $52,200. the cost of goods manufactured for june was:

Answers: 2

Answer

Business, 22.06.2019 22:00

Suppose that with a budget of $110, deborah spends $66 on sushi and $44 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. but then, the price of bagels falls to $1 per bagel.

Answers: 3

Answer

Business, 22.06.2019 23:00

Customers arrive at rich dunn's styling shop at a rate of 3 per hour, distributed in a poisson fashion. rich can perform an average of 5 haircuts per hour, according to a negative exponential distribution.a) the average number of customers waiting for haircuts= customersb) the average number of customers in the shop= customersc) the average time a customer waits until it is his or her turn= minutesd) the average time a customer spends in the shop= minutese) the percentage of time that rich is busy= percent

Answers: 3

Answer

You know the right answer?

Suppose the supply and demand for wheat is given by: Supply: Qs = 1800 + 240 P Demand: Qd = 2550 + 1...

Questions