6. (10 pts.) Assume you are the manager of Faygo (Michigan’s own soft drink!), where the monthly demand for Faygo at the local gas station is QD = 600 – 800P and the supply function (including sales tax) is QS = 600P – 100.
6. (10 pts.) Assume you are the manager of Faygo (Michigan’s own soft drink!), where the...
6. (10 pts.) Assume you are the manager of Faygo (Michigan's own soft drink!), where the monthly demand for Faygo at the local gas station is QD = 600 – 800P and the supply function (including sales tax) is Q$ = 600P – 100. a. Solve for equilibrium price and quantity at the local b. After seeing the most recent health statistics, Michigan's congress realizes Michigan residents have a problem with obesity. Wanting to do their part to fight obesity,...
You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands such as Coca-Cola and Pepsi. Suppose that, due to the successful lobbying efforts of sugar producers in the US, Congress is going to levy a $.50 per pound tariff on all imported raw sugar-- the primary input for your product. In...