Question

Business is booming for Consulting Services, Inc. (CSI), a local supplier of computer set-up consulting services. The company can profitably employ technicians as quickly as they can be trained. The average hourly rate billed by CSI for trained technician services and the number of billable hours (output) per quarter over the past six quarters are as follows:


Quarterly demand and supply curves for CSI services are
QD = 4,000  200P + 2,000T (Demand),
QS = 2,000 + 200P (Supply),
Where Q is output, P is price, T is a trend factor, and T = 1 during Q1 and increases by one unit per quarter.
A. Express each demand and supply curve in terms of price as a function of output.
B. Plot the quarterly demand curves for the last six quarterly periods.
C. Plot the CSI supply curve on the same graph.
D. What is this problem's relation to the identificationproblem?


$1.99
Sales1
Views98
Comments0
  • CreatedFebruary 13, 2015
  • Files Included
Post your question
5000