Assume the demand function for Dodo Corporation is expressed as: Q x = 500 – 2P...
Assume the demand function for Dodo Corporation is expressed as:
Q x = 500 – 2P x + 10P c + 5Y
Q x = quantity demanded in thousand
P x = price
P c = price of a related good C
Y = income per capita in thousand
a. If P c = RM2 and Y = RM10, derive the demand curve as price
function of quantity.
b. Is good X a normal or inferior good? Why?
c. What would you expect to happen on the sales of this company if
the competitor launched a
price cutting policy? Why?
Homework Answers
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Assume the demand function for Dodo Corporation is expressed
as:
Q x = 500 – 2P...
1. Given the demand function Q = 500 - 3P - 2P, +0.01Y where and P...
1. Given the demand function Q = 500 - 3P - 2P, +0.01Y where and P denote quantity and price of the good, Y is income, and price of an alternative good. is the a) If P=20, PA = 30, and Y= 5000, find (i) the price elasticity of demand (ii) the cross-price elasticity of demand (iii) the income elasticity of demand b) If income rises by 5%, calculate the corresponding percentage change in demand, Is the good inferior or...
Question #2 Consider the general demand function and the supply function for Dates (Tamr) in (tons)...
Question #2 Consider the general demand function and the supply function for Dates (Tamr) in (tons) below: la = 60 - 2P + 0.01M+ 0.5P, +6P Is = 600 + 10P Id=quantity demanded of dates in ton. M=income P=price of dates in Saudi Riyal Pr=price of related good(chocolates) Pe= expected price of dates. Is=quantity supplied of dates 1- Define the relationship between the price of dates and quantity demanded as well as the price and the quantity supplied? Is it...
4. Given the demand function Q=98.6-2.3P+3.1P,-2.1Y where Q, is the quantity demanded, Px is the price...
4. Given the demand function Q=98.6-2.3P+3.1P,-2.1Y where Q, is the quantity demanded, Px is the price of the good itself in dollars, P is the price of a related good in dollars, and Y is average income (measured in thousands). If P $23, Ps $29, Y = $36, compute the value for Q C 1 point Using the information in part a, compute the cross-price elasticity (Eo) and determine if Py is describing a substitute or complement (round to 2...
Consider that the general demand function for a product X is estimated to be Qd...
Consider that the general demand function for a product X is estimated to be Qd = 500 – 5P + 0.5M + 10PY - 2PZ Where Qd is quantity demanded of good X, P is price of good X, M is consumer income (in thousands), PY is price of good Y, and PZ is price of good Z. a. Based on the estimated demand function, what is the relationship between good X and good Y; between good X...
b. Equilibrium: 1) If market demand function is Q = 4−2p, and market supply function is...
b. Equilibrium: 1) If market demand function is Q = 4−2p, and market supply function is Q = 2p, what is the equilibrium price, what is the equilibrium quantity? 2) If the market supply is Q = p, the market demand is Q = 3 − bp, and the equilibrium quantity is 2, what is the value of b?
The supply function is Q- 60 +2p - 20r, and the demand function is Q 260-2p,...
The supply function is Q- 60 +2p - 20r, and the demand function is Q 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? др The effect of r on the equilibrm price iser your resonse as a whole number)
The supply function is Q 60 2p - 20r, and the demand function is Q- 260-2p,...
The supply function is Q 60 2p - 20r, and the demand function is Q- 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? The effect of r on the equilibrium price is (Enter your resonse as a whole number.) The effect of r on the equilibrium quantity isEnter your resonse as a whole number.) op
Q3. The general linear demand for good X is estimated to be Q = 25,000 -...
Q3. The general linear demand for good X is estimated to be Q = 25,000 - 80P-0.25M + 72P (6 Pts) where P is the price of good X, M is average income of consumers who buy good X, and P, is the price of related good R. The values of P, M, and P, are expected to be $100, $35,000, and $60, respectively. Use these values at this point on demand to make the following computations. a. Compute the...
The demand function for Product X is Qd = 100 – 2P and its supply function is Qs = -20 + P where P is the price of Product X in dollars while Qd is the quantity demanded and Qs is the quantity supplied (both expressed in thousands of units).
Part 2 The demand function for Product X is Qd = 100 – 2P and its supply function is Qs = -20 + P where P is the price of Product X in dollars while Qd is the quantity demanded and Qs is the quantity supplied (both expressed in thousands of units). Part 1What are the equilibrium price and quantity? (3 points)What is the consumer surplus in the market for Product X? (2 points)What is the producer surplus in the market...
15. Suppose the demand function for a good is expressed as Q = 100 - 4p....
15. Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for $10, then the price elasticity of demand equals ОА. – 4. ов. - 1.5. Ос. - 2.5. OD. – 0.67. 16. If the demand curve for comic books is expressed as Q = 10,000/p, then demand has a unitary elasticity O A. always. OB. never. O c. only when p = 100. OD. only when p = 10,000.
1. Given the demand function Q = 500 - 3P - 2P, +0.01Y where and P denote quantity and price of the good, Y is income, and price of an alternative good. is the a) If P=20, PA = 30, and Y= 5000, find (i) the price elasticity of demand (ii) the cross-price elasticity of demand (iii) the income elasticity of demand b) If income rises by 5%, calculate the corresponding percentage change in demand, Is the good inferior or...
Question #2 Consider the general demand function and the supply function for Dates (Tamr) in (tons) below: la = 60 - 2P + 0.01M+ 0.5P, +6P Is = 600 + 10P Id=quantity demanded of dates in ton. M=income P=price of dates in Saudi Riyal Pr=price of related good(chocolates) Pe= expected price of dates. Is=quantity supplied of dates 1- Define the relationship between the price of dates and quantity demanded as well as the price and the quantity supplied? Is it...
4. Given the demand function Q=98.6-2.3P+3.1P,-2.1Y where Q, is the quantity demanded, Px is the price of the good itself in dollars, P is the price of a related good in dollars, and Y is average income (measured in thousands). If P $23, Ps $29, Y = $36, compute the value for Q C 1 point Using the information in part a, compute the cross-price elasticity (Eo) and determine if Py is describing a substitute or complement (round to 2...
The supply function is Q- 60 +2p - 20r, and the demand function is Q 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? др The effect of r on the equilibrm price iser your resonse as a whole number)
The supply function is Q 60 2p - 20r, and the demand function is Q- 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? The effect of r on the equilibrium price is (Enter your resonse as a whole number.) The effect of r on the equilibrium quantity isEnter your resonse as a whole number.) op
Q3. The general linear demand for good X is estimated to be Q = 25,000 - 80P-0.25M + 72P (6 Pts) where P is the price of good X, M is average income of consumers who buy good X, and P, is the price of related good R. The values of P, M, and P, are expected to be $100, $35,000, and $60, respectively. Use these values at this point on demand to make the following computations. a. Compute the...
15. Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for $10, then the price elasticity of demand equals ОА. – 4. ов. - 1.5. Ос. - 2.5. OD. – 0.67. 16. If the demand curve for comic books is expressed as Q = 10,000/p, then demand has a unitary elasticity O A. always. OB. never. O c. only when p = 100. OD. only when p = 10,000.
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