1. In economics, the equilibrium point is the meeting point between the function representing the demand...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. In economics, the equilibrium point is the meeting point between the function representing the demand for a product and the function the supply of a product (see the following graphic representation) pa Offre SC SP E 9 a) Determine the equilibrium point E(qe, Pe) between supply and demand for a product if a company believes that the product offering is O(q) = 2.5q+3.5 and product demand, D(q) 54,85-5,4q Where q2 0 and 0(q) and D(q) are expressed in dollars. b) Graph the previous functions and indicate the point of equilibrium. c) When q = qe, determine: i. The consumer surplus SC, which corresponds to the area of the region SC; ii. The producer surplus SP, which corresponds to the area of the region SP; iii. The total surplus ST, where ST = SC + SP. Question 2. a) Consider the following equivalent staggered matrices: [1 1 2 1 2 1151 5 [1 1 2 8 →0 2 1 2 4 a b c 0 Idl L1 -1 -2 -1 -1. Lo 0 Determine the values of a, b, c and d. Demande b) Use the result obtained in a) to determine the solution set of the following system of linear equations: (S) ii. z=1 and w=1; iii. y=-3 and w=5. x + y +2z+w=5 x+2y + 4z + 2w = 8 x-y-2z-w=-1 c) Determine the particular solution when i. z=0 and w=0; 1. In economics, the equilibrium point is the meeting point between the function representing the demand for a product and the function the supply of a product (see the following graphic representation) pa Offre SC SP E 9 a) Determine the equilibrium point E(qe, Pe) between supply and demand for a product if a company believes that the product offering is O(q) = 2.5q+3.5 and product demand, D(q) 54,85-5,4q Where q2 0 and 0(q) and D(q) are expressed in dollars. b) Graph the previous functions and indicate the point of equilibrium. c) When q = qe, determine: i. The consumer surplus SC, which corresponds to the area of the region SC; ii. The producer surplus SP, which corresponds to the area of the region SP; iii. The total surplus ST, where ST = SC + SP. Question 2. a) Consider the following equivalent staggered matrices: [1 1 2 1 2 1151 5 [1 1 2 8 →0 2 1 2 4 a b c 0 Idl L1 -1 -2 -1 -1. Lo 0 Determine the values of a, b, c and d. Demande b) Use the result obtained in a) to determine the solution set of the following system of linear equations: (S) ii. z=1 and w=1; iii. y=-3 and w=5. x + y +2z+w=5 x+2y + 4z + 2w = 8 x-y-2z-w=-1 c) Determine the particular solution when i. z=0 and w=0;
Expert Answer:
Answer rating: 100% (QA)
Lets tackle the first part of the question related to economics a To determine the equilibrium point Qe Pe between supply and demand for a product we set the supply function equal to the demand functi... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
iScream Ice Cream Co. iScream is a Chicago start-up that sells ice cream in several mobile ice cream trucks. The main innovative feature of their business is the implementation of a smart phone app...
-
For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand (economists refer to such products as normal goods). Let d = annual demand for a...
-
MW Canada developed a 90-hour technical training program that was delivered over two months. Because it enabled the loom mechanics to act more independently with less downtime if the total cost was...
-
A 3500-pF capacitor is connected to a 55.0-H coil of resistance 3.00 . What is the resonant frequency of this circuit?
-
In a test to determine the friction coefficient, , associated with a disk brake, one disk and its shaft are rotated at a constant angular velocity w, while an equivalent disk/shaft assembly is...
-
Lakewood Co. issues \(\$ 100,000\) of \(6 \%, 20\)-year bonds payable that are dated April 30. Record (a) issuance of bonds at par on Nay 31 (b) the next semiannual interest payment on October 31.
-
Imagine that Canada, the United States, and Mexico decide to adopt a fixed exchange rate system. What would be the likely consequences of such a system for (a) international businesses and (b) the...
-
Determine dy/dr when 3x+4y = 3.
-
The trial balance of Pacilio Security Services Inc. as of January 1, 2017, had the following normal balances: Cash ................. 78 , 972 P e t t y C a s h . . . . . . . . . . . . . . . . 100 A c...
-
The T. P. Jarmon Company manufactures and sells a line of exclusive sportswear. The firm?s ?sales were $600,000 for the year just ended, and its total assets exceeded $400,000. The ?company was...
-
What mechanisms do we have for regularly assessing and recalibrating our efficiency initiatives to ensure alignment with evolving organizational goals and external market conditions ?
-
Woolworths says it is the role of the Audit Committee to provide independent oversight of the effectiveness of the internal financial controls and the system of internal controls. What do you think...
-
What methodologies are we employing to identify and eliminate bottlenecks, redundancies, and inefficiencies in our existing processes ?
-
How are we incorporating flexibility into our efficiency-driven strategies to allow for adaptation and resilience in the face of unexpected changes or disruptions?
-
How do you cultivate a visionary approach to leadership, ensuring your team is aligned with long-term strategic objectives while maintaining adaptability to evolving market trends ?
-
A company's transactions (a through e) are posted in the following T-accounts from its first month of operations. a. d. e. Debit Debit Cash 5,000 b. 150 190 Notes Payable b. Credit Credit 550 b....
-
An annual report of The Campbell Soup Company reported on its income statement $2.4 million as equity in earnings of affiliates. Journalize the entry that Campbell would have made to record this...
-
Draw a basic aggregate demand and aggregate supply graph (with LRAS constant) that shows the economy in long-run equilibrium. a. Assume that there is a large increase in demand for U.S. exports. Show...
-
Suppose the United Kingdom and Norway both produce oil and fish oil, which are sold for the same prices in both countries. The following table shows the combinations of both goods that each country...
-
What are implicit costs? How are they different from explicit costs?
-
Identify and explain the four types of opinions an auditor may render.
-
What conditions must be met to warrant the expression of an unqualified opinion?
-
Explain the reference in the fourth standard of reporting to (a) financial statements, (b) character of the examination, and (c) the degree of responsibility the auditor is taking.
Study smarter with the SolutionInn App