1) In the city of Tako, there is a veterinary clinic that offers medical care services for pets. The clinic cares for cats and dogs (the veterinary clinic has the capacity to care for a maximum of 60 pets per day), providing consultation services, vaccinations, minor surgeries, and preventative care.

Additional Information:

At a price of $50 per visit, the clinic can handle a maximum of 60 visits per day.

At a price of $80 per visit, the clinic can handle a maximum of 40 visits per day.

Pet owners in the city are willing to pay up to $70 per consultation.

At a price of $40 per query, the quantity of queries demanded is 70 per day.

At a price of $90 per query, the quantity of queries demanded is 30 per day.

Questions for students:

What is the price range in which the demanded number of consultations is greater than the clinic's service capacity?

What is the price range in which the demanded number of consultations is less than the clinic's service capacity?

At what price is the equilibrium point reached, where the quantity of consultations demanded is equal to the capacity of the clinic's attention?

2) Let's imagine that you are the owner of an online marketing consulting business. Initially, supply and demand are represented by the following tables:

Consulting price($)	amount offered	Quantity demanded
100	50	80
150	70	100
200	90	120
250	110	140

Suppose that due to an increase in the costs of the inputs required to provide the online marketing consulting service, supply is reduced at each price level. The new offer is represented by the following table:

Consulting price ($)	Amount offered
100	30
150	50
200	70
250	90

What is happening in the market? Graphically represent the situation that is occurring.

Answer rating: 100% (QA)

Question 1 To answer these questions lets analyze the given information and create a table showing t... View the full answer