ZuoTi.Pro
Question

Managerial economics

If the market demand and supply functions for pizza in Sahiwal were

Qd = 10,000 – 1,000P

Qs = -2,000 + 1,000P

(A)   Determine the algebraically equilibrium price and quantity of Pizza and

(B)    Plot the market demand and supply curves and label equilibrium point E and draw demand curve faced by Pizza Hutt in Sahiwal on the assumption that the market is perfectly competitive.

Show also the marginal revenue curve on the same figure.      


0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Managerial economics
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • DEMAND & SUPPLY: Consider the market for bananas which is known to be perfectly competitive. The...

    DEMAND & SUPPLY: Consider the market for bananas which is known to be perfectly competitive. The market is characterized by the following relationships: QD = 10,000 – 140P QS = 7500 + 125P Plot the demand curve and the supply curve on a graph. Clearly label the axes and the intercepts. Why is the demand-curve downward-sloping? What is the slope of the demand curve? Why is the supply-curve upward-sloping? What is the slope of the supply curve? What is the...

  • 6.[10 points) Answer the following questions. a. In a perfectly competitive industry, the industry demand and...

    6.[10 points) Answer the following questions. a. In a perfectly competitive industry, the industry demand and supply curves are given by QD = 2,500-50P and Qs = 20P-300. Given the market conditions, graph the competitive firm's demand and marginal revenue curves. b. Graph a competitive firm that is earning economic profit. In your graph, indicate the level of profit by shading in the appropriate area. c. A perfectly competitive firm is selling 2,000 units at a price of $3, with...

  • . (9 points) The daily market for cups of chai tea at Jeff’s Espresso is given...

    . (9 points) The daily market for cups of chai tea at Jeff’s Espresso is given by the following supply and demand equations. QD =160−20P QS = 20P Please answer the following questions about this market: a. Draw the supply and demand curves below. Be sure to label the y-intercepts of each graph and the equilibrium and label the supply curve S. Solve for the equilibrium price and quantity in this market. b. What is the consumer surplus in this...

  • The market demand and supply function for pizza in Oldtown were: QD = 12,500 – 900P...

    The market demand and supply function for pizza in Oldtown were: QD = 12,500 – 900P QS = -2000 + 1100P    Determine algebraically the equilibrium price and quantity.

  • E) Solve the mathematical problems below: 1. The demand and supply curves for hotdogs in California...

    E) Solve the mathematical problems below: 1. The demand and supply curves for hotdogs in California are given by the following two equations QD = 8,000 - 800P QS = 2,000 + 200P Where QD represents quantity demanded, QS represents quantity supplied and P represents price. a. Find the equilibrium quantity and price: b. If students suddenly acquire a greater taste for hotdogs, which of the following would be the new demand curve? Circle the correct equation: QD = 6,500...

  • Use the figure below to answer the following questions. Price and cost dollars per unit) 10...

    Use the figure below to answer the following questions. Price and cost dollars per unit) 10 Quantity (units) Figure 12.4.1 3) Refer to Figure 12.4.1, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run, market A) demand will increase. B) demand will decrease. C) supply will increase. D) supply will decrease. E) supply and market demand will decrease. 4) Refer to Figure 12.4.1 which shows the cost curves...

  • Consider a perfectly competitive market for a good with the following supply and demand curves: Qd=...

    Consider a perfectly competitive market for a good with the following supply and demand curves: Qd= 400–P and Qs= 80 + 4P a. Calculate the change in equilibrium quantity, and the size of the deadweight loss that will result if a unit tax of $10 is imposedon consumers of this good. Draw a graph that illustrates how you arrived at your answer. b. Suppose the demand curve changes to: Qd’= 376-0.6P First, verify that the pre-tax equilibrium is approximately the...

  • A perfectly competitive market is described by the demand curve QD= 60 – 2P, and the supply curve QS = 5P – 10. A typic...

    A perfectly competitive market is described by the demand curve QD= 60 – 2P, and the supply curve QS = 5P – 10. A typical firm has the total cost equation: C = 16 + 2QF + QF2. What is the equilibrium price and quantity in the market? Compute the firm’s total revenue, total cost, and total profit. MC = dC/dQF = 2QF + 2

  • Suppose that the demand curve and supply functions are qD = 300−5p and qS = 100+20p,...

    Suppose that the demand curve and supply functions are qD = 300−5p and qS = 100+20p, respectively. (a) On the same graph, draw the demand and supply curves with price on the vertical axis. (b) What is the quantity and price in the equilibrium? (c) Calculate consumer surplus and producer surplus. (d) Suppose the government implements a $5 dollar per unit sales tax. i. Calculate the new quantity and the price paid by the consumer. ii. Calculate the consumer surplus,...

  • For Question 1-8, consider a competitive market for a good where the demand curve is determined...

    For Question 1-8, consider a competitive market for a good where the demand curve is determined by the demand function: P=5-QD and the supply curve is determined by the supply function: P=QS. Where P stands for Price, QD is quantity demanded and QS is quantity supplied. What is the equilibrium price level for the good in the competitive market?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT