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39. The demand functions for two products are given below. pi. P2. qi,and q are the prices (in Are these two products complementary goods dollars) and quantities for products 1 and 2. or substitut...
Partial Derivatives Example (11): Suppose that the daily demand for 3q butter is given by f (p,q)d the daily 1+p2 2p demand for margarine is given by g(p,q) where p and q are the unit prices. Determine whether the two quantities (butter and margarine) are Substitute or Complementary or neither. Example (11): Suppose that the daily demand for 3q butter is given by f (p,q)d the daily 1+p2 2p demand for margarine is given by g(p,q) where p and q...
(8 points) Consider the following two market model Market 1: Q = 20 - P1+2Pz; Qi = 2P1 - 27 Market 2: Q9 = 18 – 2P, +3P; Q:= 2 + 4P, lave where Q' is the demand for good i and Q! is it's supply. Prepresents the price for good i. As you can see the the demand for a good is affected by not only its own price but also by the price of the other good. (a)...
A firm produces two goods (the quantities of the two goods are denoted, Q1 and Q2). The demand functions are Pi = 50-0.0075Q1 and P.-40-0.004Q2. Total cost is given by TC 19,800 + 20Q1 + 2002, Marginal costs are constant, so pricing at marginal costs results in a loss of the fixed costs for the firm. To eliminate this loss, prices must be raised. The regulator is considering three different possible sets of prices: Set 1: P121 and P2 23.98...
Two markets for two commodities interact with each other in the sense that the demand for each product depends not only on its own price, but also on the prices of other products. Suppose that the demand functions are as follows: q d 1 = 18 − 3p1 + p2 q d 2 = 12+p1 − 2p2 Suppliers are assumed willing to produce these two products according to the following supply functions: q s 1 = -2 + 4p1 q...
6) A pure-exchange economy has n consumers and two goods. The aggregate excess demand functions for goods 1 and 2, defined for all strictly positive price vectors p (pi, p2), are given by Z,(p) = I'l n-A and Z. (p)-n n-B where A and B are real numbers. Assume that 2p2 P1 these excess demand functions are derived from each consumer i maximizing a strictly monotonic utility function subject to the budget constraint р.Х. DN a) Find all values of...
Prices P1 and P2 are in dollars and 41 and 42 are numbers of units. The demand functions for two products are given by the following. 41 = 800 - 7P1 - 4p2 42 = 200 - 3p1 - 5P2 Find the demand for each of the products if the price of the first is P1 = $10 and the price of the second is P2 = $5 91 = 92 = Need Help? Read it Watch
A fixed amount of a mineral (Q) is available for consumption in period 1 (qi) and/or period 2 (). The demand functions for the mineral in each period are the same and are given by q1- 200 pi and q2 200 - p2 where pi and p2 are the prices for the mineral in each period. Assume that the marginal extraction cost is zero. 4. Calculate the equilibrium price and quantity in each period if Q = 180, the discount...
2. Cournot competition: P1 and P2 (independently and simultaneously) choose quantities, qi and q2. The cost of producing q units is c(ai)i and the demand curve is given by P(O) 10 Q: (i.e., if P1 produces qi and P2 produces q2; each sells all his units at price 10 1 92 (a) Find all NE. b) Now suppose that the game is played twice. Each firm chooses both a production quantity, and, firm 2 can choose to donate some of...
Q No.01 : A firm sells two products . The demand functions for the two products are q1 = 110 – 4p1 – p2 q2 = 90 – 2p1 – 3p2 where pj equals the price of product j and qj equals the demand (in thousands of units) for product j . Determine the price which should be charged for each product in order to maximize total revenue from the two products . How many units will be demanded of...
2. An economy produces 5 goods. The quantities produced and the prices of the 5 goods in year 1 and year 2 are shown below: Good A Good B Good C Good D Good E Year 1 Pi Q 30 100 50 200 20 300 80 100 0 100 Year 2 P2 Q2 32 100 49 210 21 295 82 110 40 95 (a) Let year 1 be the base year (i) Calculate the nominal GDP and real GDP in...