Question 1 (6 pts) Given the following demand and supply curve for the new Nike shoes which your favourite popstar raves

Post by **answerhappygod** » Tue Jul 12, 2022 12:42 pm

: Question 1 6 Pts Given The Following Demand And Supply Curve For The New Nike Shoes Which Your Favourite Popstar Raves 1 (40.03 KiB) Viewed 56 times

: Question 1 6 Pts Given The Following Demand And Supply Curve For The New Nike Shoes Which Your Favourite Popstar Raves 2 (30.6 KiB) Viewed 56 times

: Question 1 6 Pts Given The Following Demand And Supply Curve For The New Nike Shoes Which Your Favourite Popstar Raves 3 (19.99 KiB) Viewed 56 times

: Question 1 6 Pts Given The Following Demand And Supply Curve For The New Nike Shoes Which Your Favourite Popstar Raves 4 (11.65 KiB) Viewed 56 times

: Question 1 6 Pts Given The Following Demand And Supply Curve For The New Nike Shoes Which Your Favourite Popstar Raves 5 (24.12 KiB) Viewed 56 times

: Question 1 6 Pts Given The Following Demand And Supply Curve For The New Nike Shoes Which Your Favourite Popstar Raves 6 (42.53 KiB) Viewed 56 times

: Question 1 6 Pts Given The Following Demand And Supply Curve For The New Nike Shoes Which Your Favourite Popstar Raves 7 (26.12 KiB) Viewed 56 times

: Question 1 6 Pts Given The Following Demand And Supply Curve For The New Nike Shoes Which Your Favourite Popstar Raves 8 (14.93 KiB) Viewed 56 times

Question 1 (6 pts) Given the following demand and supply curve for the new Nike shoes which your favourite popstar raves about: Q = 210-3P and Q = 50 +2P 1. Find the equilibrium price and quantity 2. If the price of the good was $20, how much would consumers want? How much would firms be willing to supply? 3. Show (1.) and (2.) on a diagram. 4. Would you call (2.) a shortage or a surplus of goods? Why? 5. Given the following functions: Q= 80-3P a. b. Q=320-2P C. Q=90+5P d. Q=70+2P Which would best describe the following scenario: Just before you make the purchase, you see me walking in the Nike store trotting my new pair of Nike, which were the exact same you wanted to buy. I wave at you! Then proceed to talk to you in front of your friends and talk about how if you buy the shoes we will be shoes buddies! And get to talk about it in class in front of everyone! FUN! Give your choice and reasoning. 6. Identify your choice (5.) in your diagram.

Question 2 (4 pts) Let's spice things up a little bit! What if your demand and supply function had more information incorporated in them to describe our demand and supply for Charleston Chew. Demand for Charleston Chew: Qcc(Demand) = 30-12Pcc +0.02Income, where Pcc is the price of the Charleston Chew bar, and I is income. Supply: Qcc(supply) = 10 + 1Pcc, where Pcc is the price of the Charleston Chew bar. 1. If your income is $10,000, how much Charleston Chew bars will you demand if the bars are priced at the very fair price of $2 a piece? 2. If your income increases to $12,000, will you want to purchase more or less Charleston Chew bars? Find the new equilibrium price and quantity. 3. Are we observing a shift in the supply or a movement in Charleston Chew? Why?

Question 1 - answer sheet 1. Equilibrium price. Show your work. 1. If the price of the good was $1 How much would consumers want? How much would firms be willing to supply? Show your work. and Equilibrium quantity. 1. Diagram of (1.), (2.) and (6.)

Would you call (2.) a shortage or a surplus of goods? Why? 3. Choice selected. reasoning:

Question 2- answer sheet 1. If your income is $10,000, how much Charleston Chew bars will you demand if the bars are priced at the very fair price of $2 a piece? Quantity demanded_ Show your work: 2. If your income increases to $12,000, will you want to purchase more or less Charleston Chew bars? and Find the equilibrium price and quantity given these values. Want more or less? Explain: Equilibrium Quantity Show your work: and Equilibrium price, 3. Are we observing a shift in the supply or a movement? Why?

Question 1 (8 pts) Brendan is the new CEO of MAD magazine (https://www.madmagazine.com/)! Good Job! You have noticed that Kids these days don't seem to enjoy the magazine as much, changing times perhaps. The following table provides you with price elasticity measures recorded through the times. 12 Month (6 issues) Single issue Price Elasticity of Demand 1.25 0.75 Initial quantity demanded (thousand) 15 35 Initial Price ($) 29.99 4.99 4. [2 points] If you were to decrease the price of the single issue magazine to $3.99, what would be the percent decrease in price? show your work. 5. [2 points] If the price of the single issue magazine changed to $2.99 from $4.99, what is the new quantity demanded of magazines? show your work.

6. [1 points] If you were to Increase the price of the 12 month subscription magazine to $34.99, what would be the show all your work. percent increase in price? 7. [2 points] You have also discovered that the cross price elasticity of cigarettes (price) and MAD (quantity) is: E(Qmad,Prig) = -0.5 i. What can you say about cigarettes and MAD magazine, What types of goods are they? ii. If the price of cigarettes have increased from $5 to $20 for a pack, what will be the impact to MAD magazines demanded, if any?

Question 2 (3 points) The Nova Scotia government is trying to figure out how to increase its revenues. Someone though about taxing brocolies $2 per bunch. Explain to this government official, that his efforts to tax brocoli will most likely be in vein. Explain your logic simply, and then back it up with concepts which we learned to identify whether you would be right or not.