7. Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from: a decrease in Japanese interest rates
a. The yen depreciates, and the pound appreciates
b. The yen appreciates, and the pound depreciates
c, The yen depreciates, and the pound depreciates
d. The yen appreciates, and the pound appreciates
8.Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from: a decrease in the price of British goods
a. The yen depreciates, and the pound appreciates
b. The yen appreciates, and the pound depreciates
c, The yen depreciates, and the pound depreciates
d. The yen appreciates, and the pound appreciates
9.Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from: a decrease in British interest rates
a. The yen depreciates, and the pound appreciates
b. The yen appreciates, and the pound depreciates
c, The yen depreciates, and the pound depreciates
d. The yen appreciates, and the pound appreciates
Your boss has asked you to analyze the foreign exchange exposure of a subsidiary in Erehwon. The subsidiary sells exclusively in Erehwon, taking in revenues denominated in Erehwon grolsch. The market is strictly local, and the subsidiary does not compete in a world output market. However, the market is not perfectly competitive so the demand for the product is downward sloping. The costs of production are also strictly local, denominated in Erehwon grolsch, and marginal costs rise with the quantity produced. Prepare a diagram of marginal cost, demand, and marginal revenue curves with the U.S. dollar price on the vertical axis and quantity on the horizontal axis.
a. Show what the optimum quantity of output/sales is for the subsidiary, and what the optimum (U.S. dollar equivalent) price is.
b. Your boss is worried that the Erehwon grolsch will depreciate by 10 percent. Assuming that this is a self-contained subsidiary (as just explained), show what happens when there is a 10 percent depreciation of the grolsch in the diagram. What happens to the optimum quantity of output/sales for the subsidiary? What happens to the optimum (U.S. dollar equivalent) price following the 10 percent depreciation? What happens to the Erehwon grolsch price following the 10 percent depreciation?
I need to know what The United States of America is in demand for. For example,specific fruits oil etc, also and how does this affect our economy, how does inflation tie into this and who determinds the prices for these items?? Thanks, Rudy
3. Using the following schedule, define the equilibrium price and quantity.
Describe the situation at a price of $10. What will occur? Describe the situation at a price of $2. What will occur?
Price Quantity Demanded Quantity Supplied
$1 500 100
$2 400 120
$3 350 150
$4 320 200
$5 300 300
$6 275 410
$7 260 500
$8 230 650
$9 200 800
$10 150 975
Equilibrium occurs when quantity demanded equals quantity supplied.
In this schedule it occurs when the price is $5, and the quantity demanded equals quantity supplied,
that is 300. When the price is $10, there will be excess supply (975) and very small demand (150)
leading to a surplus in the market. The surplus can fall only when producers start charging lower
prices to get rid of their inventories. This process will continue till the prices converge to $5. If the
price is $2 then we have the opposite situation: very high demand (400) and very small supply (120).
Thus we will have a shortage in the market, and consumers will be willing to pay a higher price.
The price will therefore rise till it reaches the equilibrium price of $5.
Suppose you are the manager of a California winery…How would you expect the following events to affect the price you will receive for a bottle of wine?
a. price of comparable French wine decreases
b. 100 new wineries open in California
c. unemployment rate in the US decreases
d. price of cheese increases
e. due to new anti-shatter regulations enforced by the government the price of glass bottles increases
f. production costs can be decreased due to new wine making technology that has been discovered.
g.the price of wine vinegar (which is made from grape mash) increases
h. average age of consumers increases and older people drink less wine
I am essentially looking for any help with this problem in regards to potential formulas that could be used to help explain why and for more then just it will decrease or increase.
IT REQUIRES ALGEBRA.
In 1996 Congress raised the minimum wage from $4.25 to $5.15 per hour. Some people suggested that a government subsidy could help employers finance the higher wage. This exercise examines the economics of a minimum wage and wage subsidies IN A MAKE-BELIEVE COUNTRY.
Suppose the supply of low skilled labor is given by LABOR SUPPLY = 10*w millions where w is the wage rate [in dollars per hour]. The demand for labor is given by LABOR DEMAND = 80 – 10*w millions.
a) What will be the free market wage rate and employment level?
b)Suppose the government sets a $5.00 per hour minimum wage. What will be the employment level?
c) Suppose the government pays a subsidy of $1 per hour directly to the employee. What will be the market wage and employment level? How much will the government pay per week [suppose every laborer works 40 hours]?
NOTE that the three possible actions a, b, and c are independent of each other – the answer to any one does not depend on any other.
The milk industry has a number of interesting aspects. Provide economic explanations for the following:
a. Fluid milk is 87% water. It can be dried and reconstituted so that it is almost indistinguishable from fresh milk. What is a likely reason that such reconstituted milk is not produced?
b. The US has regional milk-marketing regulations whose goals are to make each of the regions self-sufficient in milk. What is the likely reason for this.
c. A US Senator from a milk-producing state has been quoted as saying, “I am absolutely convinced…that simply bringing down dairy price supports is not a way to cut production.” Is it likely that he is correct? What is a probably reason for his statement?
Please look at the attached problem and help understand where everything goes.
Draw supply and demand for a product showing the equilibrium price and quantity. Illustrate what would happen if all the transactions costs of market were reduced. Generally, what is the impact of transactions costs on the operation of the marketplace?
The bank is looking for new clients in high-growth industries. Until a few years ago, if a consumer wished to purchase music, he or she would have to buy a recording of it at a store, but there is only a limited supply of compact discs, tapes, or records at any given store. Because of advancements in technology, consumers can now download music with virtually no restrictions on supply. Your manager has asked you to identify a product, aside from the music industry itself, which has experienced a dramatic increase in supply because of technological advancements. What has happened to the variety and price of those products?
A) Is it possible that you would purchase more of a good if its price rose? Is it possible that you would buy less of a good whose price falls? WHY or WHY NOT?
B) What is an inferior good?
C) What is the only determinant of demand that can have changed if there is a change in quantity demanded? What if there is a change in demand?
D) Why do changes in price expectations change demand today?
E) Do prices change demand for perishable or hard-to-store goods, like fresh vegetables or gasoline?
Need help in formulating a DETAILED answer to this question:
From a purely economic point of view, what role, if any, should the government play in affecting the supply and demand of a key commodity such as gasoline or electricity?
I need help with the following below:
Using the link provided on the rEsource page, complete the Supply and Demand simulation. Based on your learning, reading, and on the simulation, prepare a 700-1,050 word paper using APA formatting and including at least 2 peer-reviewed references, summarizing the content. In the paper, be sure to address the following:
a. What causes the changes in supply and demand in the simulation?
b. How do shifts in supply and demand affect your decision-making?
c. List four key points from the reading assignments that were emphasized in the simulation?
d. How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace?
e. Determine how price elasticity of demand affects the decision making of the consumer and of the organization.
Summarize your results of the assessment for your instructor.
* The attached document is the simulation.
*Please include references and do not copy information from places such as free papers or fratfiles, etc. No plagiarizing!!!!
See attached file for full problem description.
1.) We make choices as consumers every day. Opportunity cost is defined as a person’s “next best alternative” or “the cost of what you give up when you make a choice.”
Think of a recent decision you made regarding your career. What was your opportunity cost for making that choice? What was your “next best alternative”?
2.) Explain why housing prices vary from city to city. For example, topeka, kansas, vs concord, Massachusetts, vs san francisco, ca, etc. Clearly explain how supply and demand affect the prices of the homes.
Question 1 :
The following item appeared in a major daily newspaper: does this observation in fact violate the laws of supply and demand?
“Though sales are down, prices continue to rise in apparent violation of the law of supply and demand.”
The Baby Boomer generation is aging and will need more health care support (demand) over the next few years. Tens of thousands of nurses and primary care physicians (PCP) will be needed (supply) to meet this demand. Reduction in Medicare payments — leaving PCPs scrambling to keep their practices; lack of interest in becoming a PCP; and a general shortage in qualified nurses complicate the supply chain for this increasing demand.
How do we meet this growing demand?
The main thing is that many farmers have converted their acreage from wheat to corn to take advantage of the demand for ethanol, used in gasoline and which draws very high prices for growers. Farmers that had planted wheat for 50 years are now planting corn. How will this affect the supply and demand?
There is a shortage of college basketball and football tickets for some games, and a surplus occurs for other games. Why do shortages and surpluses exist for different games?
Please answer in 200-300 words.
1. In terms of supply and demand, is price the only thing that matters? Why or why not?
My question is :
1)Why are prices generally higher for goods/services in London as opposed to Newcastle, or New York as opposed to San Fran?
I understand that inflation is caused by excess demand/liquidity which causes the price of inputs such as raw materials to rise. But is the answer to the above question attributable to this fact. I don’t feel it is because prices tend to rise higher in London as opposed to Newcastle as well. I felt that it is because the market can bear a higher price (taking into account competitive pressures) and the london economy can still grow because a great deal more money flows into it. To me this increased demand does not affect the price of inputs but does enable firms to charge a higher premium – is this true?
2) If it is , then is there any difference at all between the kind of inflation thats pushes input prices up and the kind that allows firms to chrge higher prices because there is a higher demand in that part of the country? – because they both end up with the same result .i.e higher prices.
3) by extension of logic , if a firm can (taking into account competitive pressures)charge a higher price in newcastle because of higher demand then will it – but this will have no impact on the price of inputs right?
Long but interrelated questions – really hope you can help.
Thank you.
Qd= 317500-10000P
Qs= 2500+7500P
Q is pounds of scrap and P is in cents
15cents
16 cents
17 cents
18 cents
19 cents
20 cents
Need to complete the following for each Price
Price(1) Qs(2) Qd (3) surplus (+) or Shortage) (4=2-3)
15
16
17
18
19
20
Using the principles of supply and demand, develop a plan to alleviate the shortage of Math and Science teachers within this country. Try to use price and non-price determinants as your tools to reach equilibrium. Defend your position using economic principles.
As per attchment
What is supply? What is law of supply and what are the determinants of supply?
During the energy crisis in the United States there was a vigorous public campaign to encourage consumers to conserve on their electricity use. People did reduce their demand for electricity and ended up paying higher prices. How could such a thing happen?
Not familiar with this, wanted some help to formulate a good essay.
Assume there is a market for an industrial compound, Weon. This industrial compound is used as an input for the production of cleaning agents.
a. Draw a correctly labeled graph of supply and demand showing the equilibrium price and quantity. Also clearly identify the equilibrium in this market.
b. Suppose the manufacturing process for this industrial compound has been improved. Draw a correctly labeled graph showing this change in a supply and demand graph. Also explain what is going on and be sure to identify the new equilibrium price and quantity.
c. Suppose that the government decides to impose a price floor in this market for this industrial compound. Draw a correctly labeled graph showing this price floor.
d. Suppose that the government imposes a tax on this industrial compound. Draw a correctly labeled graph showing the effects of this tax on the price and quantity of this industrial compound.
Suppose that the market demand for bus rides is given by Q=420-30P and the market supply of bus rides is given by Q=30P where Q is bus rides per week in thousands and P is the price per bus ride in dollars.
a. Find the equilibrium price/quantity combination for bus rides.
b. How much is spent on bus rides? What is consumer surplus in dollars at this equilibrium? How much is the total benefit in dollars from bus rides?
c. How much does it cost to provide these bus rides? What is producer surplus in dollars at this equilibrium? How much is the bus companies’ total revenue?
d. Graph you results (please be explicit)
Suppose that the state government decides to tax bus rides in an attempt to reduce its budget deficit. The tax is $2 per bus ride. The tax will be collected by the bus companies and remitted to the state government.
a. Find the new equilibrium prices to bus riders and to bus companies, the new equilibrium quantity and total tax payments in dollars to the state government (Remember: Ps=Pb-T).
b. What is the deadweight loss in dollars due to the tax?
Recently, cellular telephones have become very popular. at the same time new technology has made them less expensive to produce. By assuming the technology advance caused cost curves to shift downwards at the same time that demands was shifting to the right, draw a diagram or diagrams to show what will happen in the short and in the long run.
Managerial Economics Homework Exercises
Rigoberto
3.-
For each of the firms below, identify the market structure that best maches the
competitive characteristics found in that firm’s market:
a) ………………………………… Business Week magazine
b) …………………………………. Exon Corporation
c) …………………………………. Dow Chemical, Wholesale chemicals
d) ………………………………….. Pfizer, Inc, supplier of viagra
4.- Explain why Sunkist, a well-known citrus producer, is a price-taker.
5.- Explain Why the Lexus dealer in your city is a Pice-setting firm. Be sure
to discuss the concept of market power.
6.- Consider the market for new, single-family homes in New Orleans.
The generalized demand funtion for new housing in New Orleans is
estimated to be
Qd = 15-2p + 0.05M + 0.10R
Where Qd is the monthly quantity demanded, p is the price per square
foot, M is average monthly income in New Orleans, and R is the average
monthly rent for a three-bedroom aprtment in New Orleans. Qd is measured
in units of 1,000 square feet per month.
a) New housing in New Orleans is a(n)…………………………(normal, inferior)
good. How can you tell from the generalized demand funtion?.
b) New housing and three bedroom apartments are………………….. (substitutes,
complements) in New Orleans. How can you tell from the generalized demand
funtion?
c) If a average monthly income is $1,500 and the monthly rental rate for
the three-bedroom apartments is $700, then the demand funtion for new housing
in New Orleans is: Qd =…………………………………………..
d) Graph the demand curve for new housing in New Orleans on the axes
provided below. Label the demand curve D0.
The generalized supply funtion for new housing in New Orleans is estimated
to be: Qs =96 + 2P – 10PL – 4 Pk
Where P is the price per square foot of new housing in New Orleans, PL is the
average hourly wage rate for construction workers, and Pk is the price of Capital
( as measured by the average rate of interest paid on loans to home builders).
Qs is measured in units of 1,000 square feet per month.
e) Does it make sense for PL and Pk to have negative coefficients in the
generalized supply funtions? Explain why or why not.
f) If the average hourly wage rate for construction workers is $10 per hour
and the average rate of interest on loans to builders is 9% ( i.e Pk = 9),
then the supply funtion for new housing is:
Qs =…………………………………………..
g) Graph the supply curve for new housing in the graph below. Label Supply S0.
h) Solve mathematically for equilibrium price and quantity. Show your work.
PE = $……………………………….per square foot.
QE = …………………………….. Square feet per month ( in 1,000’s).
i) Do your supply and demand curves intersect at PE and QE found in
question h) above? Should they?
j) Suppose New Orleans suffers a serious recession that causes average
monthly income to fall from $1,500 to $1,100 per month. If other things
remain the same, the demand for new housing in New Orleans is Now:
Qd =…………………………………… Plot this new demand curve in the
figure below. Label it D’.
k) Suppose that because of the recession in New Orleans, the wage rate
for construction workers falls to $8 per hour. If other things remain the same
the supply of new housing in New Orleans is Now:
Qs=…………………………………….Plot the new supply curve in the figure
Label the new supply curve S’.
l) After income falls to $1,100 and wages fall to $8, new equilibrium price
and quantity are: PE= $…………………………per square foot
QE =………………………..square feet per month (in 1,000’s).
Smiths lawn services are supplied by a host of individuals in the suburb of Westbrook. Demand and supply conditions in the perfectly competitive domestic for lawn mowing services are:
P = $75 – 1.75QD
(Demand)
P = $2QS
(Supply)
where P is price per lawn mowed and Q is quantity of lawns mowed per day.
A.Algebraically determine the equilibrium industry price/output combination.
B.Confirm this by graphing industry demand and supply curves.
Supply and demand conditions
See attachment for two problems.
1. Fill out a supply and demand table based on given supply and demand curves.
2. Supply and demand conditions for unskilled labor.
Which supply and demand hedging strategies (commodities futures, vertical/horizontal integration, etc.) would be the most appropriate to meet your customer requirements, based on the country’s specific factor.
My company is Volkswagen and the country is the Ivory Coast.
4. The market for paper in a particular region in the U.S. is characterized by the following demand and supply functions:
P = 80 – 0.0005 QD P = -20 + 0.0005 QS
where QD is the quantity demanded of paper in 100 pound (lb.) lots, QS is the quantity supplied of paper in 100 pound (lb.) lots, and P is the price per 100 lb. lot of paper. Currently there is no attempt to regulate the dumping of effluent into streams and rivers by the paper mills. As a result, dumping is widespread. The marginal external cost (MEC) associated with the production of paper is”
MEC = 0.0006 QS
(a) Calculate the output and price of paper if it is produced under competitive conditions and no attempt is made to monitor or regulate the dumping of effluent. Graph this situation and label all functions and axes on the top of the next page. Briefly explain your answer.
(b) Determine the socially efficient price and output of paper below, and then add this result to your graph above. Be sure to label your work completely.
(c) Explain clearly and thoroughly why the answers you calculated in parts (a) and (b) differ.
Describe two factors that affect labor supply and two factors that affect labor demand. Using economic principles, describe how changes in the labor market have affected you or someone you know.
A few questions to clarify supply and demand:
If the number of producers for a product declines- what happens to the supply and demand of that product?
If you have two items that are complements in consumption and the price of one of them goes up, what happens to the demand of each of the items?
Consider what your firm produces( tools ). What are some things that would change the demand for your product?
What are some things that would affect changes in supply?
How can quantity demanded be changed?
What if the government raised the minimum wage. How would this policy effect your firm?
Purpose of Assignment –
The purpose of this assignment is to analyze how an event will influence the market equilibrium.
Background: Suppose the weather in Florida was extremely cold one winter. This event would affect the market for coffee in Florida, causing the demand curve to shift to the right. Remember an event that changes the demand for a product shifts the demand curve to the right. Likewise, a decrease in the supply of a product shifts the supply curve to the left. Review the Figures 10-12 on pp. 79, 80, & 82 for illustrations of these different shifts.
Assignment: Supply and Demand
Purpose of Assignment –
This assignment assesses student understanding of supply and demand. After completing the assigned reading and viewing the three-part interactive tutorial, Appendix C can be completed and submitted. The assignment addresses the relationship between price and quantity on the supply and demand curves. Students will explore factors that shift the supply and demand curves and how the equilibrium price is affected.
Resources Required
Northern Granite company, a company in New England, installs granite counter tops in homes. When it first entered the business, the price per foot for installing a granite counter top was $180 per square foot, and Northern Granite was making substantial economic profits. However, the market price for installing kept falling as competitors entered the market increasing supply. Northern Granite’s economic profits disappeared when prices fell to $59 per square foot. The owner of NG was searching for some way to increase his profits, but he had no power to raise his price above his competitors, because doing so would just about dry up all his business. One day he was on holiday in the foothills of the mountains in New Hampshire when he discovered a large hill made of granite rock. Most of the granite installed thus far, had come from far away places such as China.
He knew the “New Hampshire” granite would appeal to consumers.
To make a long story short, his firm gained rights to the “New Hampshire granite” and as a result they maintained a monopoly position in supplying New Hampshire granite counter tops, charging a price of $199 per square foot. His firm found that producing quantity demanded at this price made its marginal revenue equal to its marginal cost of $125 per square foot, and its total average cost was just $100 per square foot.
Use a diagram to show NG’s demand curve, marginal revenue curve and cost curves such that its profit maximum price is $199 per square foot. Indicate the area on the diagram that represents NG’s economic profits.
The hill where NG is mining is very remote and only a few people ever go there. Still, the mining of the granite is changing the landscape. Would you consider this as an externality, and if you do, what would you suggest be done about it? Explain.
I need help with the following questions. Please explain in detail and include graphs.
Explain the following
Law of demand and law of supply
Factors affecting demand and supply
Price elasticity of demand
Factors affecting price elasticity of demand
1. Many factors determine the supply and demand for labor. Identify and explain two factors that would increase or decrease the demand for labor. Identify and explain two factors that would increase or decrease the supply of labor. Use the readings and/or the internet for examples.
2. Immigration is a major topic of concern in today’s economy. What are the possible problems and solutions for these concerns? What could happen to the U.S. labor markets if immigration is not controlled?
1. Industry supply and demand are given by QD = 1000 – 2P and QS = 3P.
What is the equilibrium price and quantity?
At a price of $100.00, what will the quantity be?
2. The demand equation for the Widget Company has been estimated to be :
Qd= 20,000 + 10 i – 50P + 20 PC
Q=monthly # of widgets sold, I= average monthly income, P= price of widgets, and PC= average price of competing goods.
If next month’s income is forecast to be 2,000, the price of competing goods is forcast to be $20, and the price of widgets will be set at $30, forcast sales. What will sales be if the price is dropped to $20 ?
Visit http://www.bized.co.uk/learn/economics/markets/mechanism/interactive/part1.htm and read the material posted about supply and demand. Explore the concepts of supply and demand by using the interactive features on the graphs. Use the questions following the diagrams to guide your exploration. Visit parts 1, 2, & 3 of the Web site.
Fill in the matrix and answer the questions in Appendix C (attached). Describe how changes in price and/or quantity of various goods and services will affect either supply or demand and the equilibrium price. Use the graphs from the interactive activity as a tool to help you visualize the changes in price and quantity.
There is no such a thing as a product B – so substitute your own “real product” for Product B – for example, Product B could be “bananas” and consider what would happen if bananas became more fashionable, the price of a substitute for eating bananas decreases (for example, oranges), etc.
What effect will each of the following have on the supply of product B?
a. A technological advance in the methods of producing B.
b. A decline in the number of firms in industry B.
c. An increase in the price of resources required in the production of B.
d. The expectation that the equilibrium price of B will be lower in the future than it is currently.
e. A decline in the price of product A, a good whose production requires substantially the same techniques as does the production of B.
f. The levying of a specific sales tax upon B.
g. The granting of a 50-cent per unit subsidy for each unit of B produced.
There is no such a thing as a product B – so substitute your own “real product” for Product B – for example, Product B could be “bananas” and consider what would happen if bananas became more fashionable, the price of a substitute for eating bananas decreases (for example, oranges), etc.
1. What effect will each of the following have on the demand for product B?
a. Product B becomes more fashionable.
b. The price of substitute product C falls.
c. Income declines and product B is an inferior good.
d. Consumers anticipate the price of B will be lower in the near future.
e. The price of complementary product D falls.
f. Foreign tariff barriers on B are eliminated.
How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is do price and quantity rise, fall, remain unchanged, or are the answers indeterminate, depending on the magnitudes of the shifts in supply and demand? You should rely on a supply and demand diagram to verify answers.
a. Supply decreases and demand remains constant.
b. Demand decreases and supply remains constant.
c. Supply increases and demand is constant.
d. Demand increases and supply increases.
e. Demand increases and supply is constant.
f. Supply increases and demand decreases.
g. Demand increases and supply decreases.
h. Demand decreases and supply decreases
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