The demand for butter is given by 120-4pd and the supply is 2ps-30, where pd and ps are, respectively the price paid by demanders and the price received by suppliers. a: Draw the demand and supply functions. b: Find the equilibrium quantity and price, and show them on the graph.  c: Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remains the same. Draw the new supply function, and find the new equilibrium price and quantity.

Q: Suppose a consumer’s preferences for goods Y and X can be represented by the utility function,…

A: It is said that a consumer maximizes utility at that point where the slope of its indifference curve…

Q: Explain which cost concept should be used in decision making and why. The explanation should include…

A: The amount of revenue received by the business after all costs have been deducted is referred to as…

Q: A competitive firm produces a product using the function f(x1,x2)=8x1/21x1/22f(x1,x2)=8x11/2x21/2.…

A: f(x1,x2) = 8x1x2p1=$2.50p2=$4Sub to: C = 2.5x1+4x2

Q: In this question we will combine a very simplified model of an externality that has long-lasting…

A: An externality is a type of cost/benefit that is borne by the individuals who are not directly…

Q: Give me one example of how natural growth might impede one’s social capital.

A: The formation of value as a result of social ties is referred to as social capital in the social…

Q: Assume that the daily demand for packs of cigarettes in the tobacco-addicted nation of Pcorian is…

A: Given,  Demand for packs of cigarettes : Q=100-PCost of Producing a pack of cigarette : $6Each pack…

Q: The Phillips curve in Lowland takes the form of π = 0.04 – 0.5 (u – 0.05), where π is the actual…

A: The Phillips curve shows that unemployment and inflation have a consistent negative relationship.…

Q: Using a "simple" T account balance sheet show and explain briefly how the Fed controls the money…

A: Money supply is the currency available in the economy for the transaction purpose. The central bank…

Q: 12. Suppose that the money demand function is: (1)² where r is the interest rate in percent. The…

A: People's desire for a certain sum of money may be explained by the demand for money. Transactions…

Q: Consider the following principal agent problem with adverse selection. A firm faces a worker who may…

A: An agent may act in a way that is contrary to the best interests of the principal. Thus,…

Q: (1 point) The demand function for a certain item is x = (p+2) ³e P Use interval notation to indicate…

A: The elasticity of demand is given by: E=dxdppx Elasticity measures the sensitivity of quantity…

Q: In what ways do you believe the Alphabet Workers Union will enable a more outspoken and empowered…

A: Worker: It refers to the people who actually do the work in an organization. The workers get a…

Q: At an output of 1,000 units, a monopoly firm’s average revenue is $40, its marginal revenue is $30,…

A: A monopoly firm maximizes its profit when marginal revenue is equal to the marginal cost.  The…

Q: Consider a self-employed worker. The worker produces output, q, according to the production function…

A: Production function of worker : q(h ) = h Output price = 10 Cost of effort = h2 Optimal working…

Q: According to Rushkoff (2009), the philosophy of corporatism is:    A. To suppress lateral…

A: Corporatism was originally defined as a political ideology which segregates the society in to…

Q: Drug formularies Help manufacturers determine which drugs are efficacious Help salesmen determine…

A: Drug Formularies are referred to as a list of prescription drugs that are opted for or preferred by…

Q: FREE-RESPONSE QUESTIONS 1. Use the following scenario to answer all parts of the following…

A: When individuals in a society buy or sell goods and services, they often utilize money. Money…

Q: Consider a simple economy that produces only pens. The following table contains information on the…

A: An inflationary gap estimates the gap between the current level of real GDP and the GDP that would…

Q: The overall CPI in 2019 and 2020 are 120.2 and 123.3 respectively. What was the annual inflation…

A: CPI in 2019 = 120.2 CPI in 2020 = 123.3 Annual rate of inflation  = (CPI in 2020 / CPI in 2019) - 1…

Q: high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time,…

A: Calculate EUAC of Challenger as below: Resultant table: Hence, Minimum EUAC for challenger is…

Q: 3. (2) Oliver gets an allowance of $50 this week and $56 next week. Let c, and c₂ be his consumption…

A:

Q: A risk-averse manager is considering a project that will cost £100. There is a 10 percent chance the…

A: The expected value is described as the difference between expected profits and expected costs.…

Q: Suppose that average labor productivity in Country B is $25,000, and that Countries B and E have the…

A: There are five countries, named A, B, C, D, and E The average labor productivity of country B is…

Q: Exclusivity is granted for the following reasons: To delay the approval of competitor drugs When a…

A: The inventors and producers of new invention tries  to earn money  through patents. An exclusive…

Q: 5. Optimal price in San Antonio You decide to charge different prices in the two locations.  To do…

A: Cost function in San Antonio can be calculated by using the fixed and the variable costs. Fixed cost…

Q: Document F: Analyze how much we should worry about the national debt.(we should worry a little/we…

A: When referring to a country's outstanding financial commitments, the phrase "national debt" is…

Q: Suppose that Saudi Arabia produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week.…

A: The exchange or trade of goods and services between different nations is referred to as…

Q: Drugs that treat a small portion of the population are called

A: A drug used to treat, prevent, or diagnose an orphan disease is called orphan drug.

Q: Which of the following situations exhibits cominon property resource problem? overfishing in…

A: Common property resources are those renewable natural resources the excessive extraction of which…

Q: Find the amount needed to be invested now to accumulate the following amount if the money is…

A:

Q: Find some prices and income that will lead to a new budget line that intersects the old budget line…

A:

Q: The table below shows the marginal cost for three firms to clean up units of pollution. Marginal…

A: Here we are given the marginal cost of cleaning the pollution for 3 firms. Here firms faces choice…

Q: Mr. Constantine wishes to mark out a rectangular flower bed using a wall of his house as one side of…

A: It is given that a wall of Mr. Constantine's home will serve as one side of a rectangle he wants to…

Q: Economic Application of Integrals. Given the following marginal-revenue functions: a) R'(Q)=28Q-…

A: Part a   The marginal revenue function can be converted to the total revenue by integrating the…

Q: Match the following scenarios to the example of bank regulation that they represent: A. The Fed…

A: The central bank of a nation acts as a lender of last resort for commercial banks. The central bank…

Q: For a country's economy as a whole, consumption is a linear function of its national income as…

A: Consumption is a linear function of its national income.  i.e., C = Ca + MPC * (Y) Where C is the…

Q: With a aid of the diagram, find the equilibrium price, quantity and equilibrium point. The price of…

A: If the price of Huawei phone is replaced with the Samsung phone, the people will switch to the…

Q: A firm’s short-run cost function is C(q) = 100q - 5q2 + 0.3q3 + 400. a) Determine the fixed cost, F;…

A: A firm always faces two types of costs which are fixed and variable costs. Fixed costs have to be…

Q: opic: What is the world going to be like if we continue to have bilateral economic war in the next…

A: It is a common misconception that while the market economy may be tolerated in times of peace, it…

Q: Suppose that the production function for an economy is given by Y = K1/4L3/4.  The depreciation rate…

A: Given that, production function = Y = K1/4L3/4 the depreciation rate is 4% saving rate is 12%

Q: g. At what positive level of Q is marginal profit maximized? You found the profit function in (e)…

A: Total Revenue = Price*Quantity Total Cost is usually given to us Total Profit = Total Revenue -…

Q: In the era of the Covid 19 pandemic, we are required to consume lots of fresh fruits. The…

A: 2 fruits: Apples (X) and Oranges (Y)Utility function:U = X3 Y2Budget constraint:M = PX X + PY YM =…

Q: U2. Suppose that three risk-neutral bidders are interested in purchasing a Princess Beanie Baby. The…

A: An auction is a kind of economic mechanism that serves the aim of allocating items and determining…

Q: The GDP of the U.S. represents about % of the GDP of the world.

A: GDP is the gross domestic product, which measures the total value of all final goods and services…

Q: 2. Demand across the two locations - After taking your managerial economics class, you realize that…

A: The breakdown of sales across the two locations: You sold 960 burger meals per week at $10 and 600…

Q: To help the economy out of the Great Depression Keynes argued: Group of answer choices A. Wage…

A: The numerous macroeconomic theories and concepts of how aggregate demand significantly affects…

Q: 15.4.1 When the Fed O buys; increase; increases Obuys: decrease; decreases sells; increase;…

A: Central bank changes the money supply by changing the discount rate and also by open market…

Q: Suppose GDP increased by 5%, GHG/energy decreased by 2% and energy/GDP decreased by 2%. By what…

A: Given: GDP increases by 5% : GDP=(+)5% GHG/energy decreases by 2% : GHG/energy=(-)2% energy/GDP…

Q: A profit-maximizing monopoly firm will earn excess profits if it is able to produce a level of…

A: Introduction:Profit Maximization: Businesses and corporations utilize the process of profit…

Q: Explain how adverse selection leads to market failure. Give a hypothetical example/situation.

A: Moral hazard arises when one party is willing to take on more risk in order to receive more rewards,…