Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 03, 2024

Explain the rationing functioning function of price in correcting market disequilibria. If the demand curve of a firm is Qd = 4200-133p and the supply

Explain the rationing functioning function of price in correcting market disequilibria.

If the demand curve of a firm is Qd = 4200-133p and the supply curve is Q= 2867 + 200P, compute the equilibrium price and quantity.

Compute and interpret the price elasticity of demand and the price elasticity of supply.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer The rationing and signaling function of price in correcting market disequilibria 1 Rationing function When a market is in disequilibrium either ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics and Its Application

Authors: Walter Nicholson, Christopher M. Snyder

12th edition

978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039

More Books

Students also viewed these Economics questions

Question

★★★★★

The following relations describe demand and supply. Qd = 30,000 - 100P Qs = -10,000 + 100P Where P is price in dollar and Q is quantity in unit. What does demand curve and supply curve represent...

Answered: 1 week ago

Question

★★★★★

Recall that the definition of a residual is ??=????^. Residual values closer to 0 are indicative of a more accurate prediction. In terms of comparing an observed value and a value predicted from a...

Answered: 1 week ago

Question

★★★★★

In Figure 12.8, the demand curve facing a firm in a monopolistically competitive industry is shown as being tangent to its average cost curve at q². Explain why this is a long-run equilibrium...

Answered: 1 week ago

Question

★★★★★

(a) For a fiber-reinforced composite, the efficiency of reinforcement ? is dependent on fiber length l according to where x represents the length of the fiber at each end that does not contribute to...

Answered: 1 week ago

Question

★★★★★

Explain the differences between descriptive and inferential statistics.

Answered: 1 week ago

Question

★★★★★

Differentiate between a fixed-rate mortgage and a variable-rate mortgage.

Answered: 1 week ago

Question

★★★★★

=+a) Use a 4-year moving average to predict profits for 2014. b) Predict the profits for 2014 using a single exponential smooth with smoothing parameter a = 0.5. c) Think about the exponential...

Answered: 1 week ago

Question

★★★★★

At a mine processing site a new process section requires power that will be by an underground service. It will be fed by a 5MVA 22/3.3kV 7.5% Z transformer. (3ph fault power 66.7 MVA, fault current...

Answered: 1 week ago

Question

★★★★★

help please :( Balance Sheet The account balances of Paradise Travel Service for the year ended May 31, 2016, follow: Fees earned $913,695 Office expense Miscellaneous expense 210,150 18,275 438,575...

Answered: 1 week ago

Question

★★★★★

This is your mission. To prove to me you learned something of value in this course that is going to help you in your future career/plans. Choose ONE of the options below (don't do all!). To earn full...

Answered: 1 week ago

Question

★★★★★

8) Cubic function, Up 1, Right 6, compression by 3/2 10) Cube root function, Down 3, Right 2, Reflected about the x-axis, vertical compression by 6 12) Cube root function, Up 1, left 5, horizontal...

Answered: 1 week ago

Question

★★★★★

Laker Incorporated's fiscal year-end is December 31, 2024. The following is an adjusted trial balance as of December 31. Accounts Debit Credit Cash $10,400 Supplies 31,000 Prepaid Rent 22,000...

Answered: 1 week ago

Question

★★★★★

Assume that you are in the 15 percent marginal tax bracket and that you have $10,000 to invest. You have narrowed your investment choices down to California municipal bonds with a yield of 8.5...

Answered: 1 week ago

Question

★★★★★

1. Discount Banners pays $180,000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $28,500, the building $123,500, and the...

Answered: 1 week ago

Question

★★★★★

Bramble Hardware Limited reported cost of goods sold as follows. 2022 2021 Beginning inventory $27,400 $19,700 Cost of goods purchased 188,100 170,300 Cost of goods available for sale 215,500 190,000...

Answered: 1 week ago

Question

★★★★★

Bramble Ltd. holds equities securities in its portfolio and is accounting for those investments using the FV-NI method. On March 1, 2023, the company purchased 11000 shares of a publicly traded...

Answered: 1 week ago

Question

★★★★★

Price the bonds from the following table with semiannual coupon payments below: Par Value Coupon Rate Years to Maturity Yield to Maturity Price $5,000.00 8% 25 8% ? $1,000.00 7% 15 12% ? $1,000.00 6%...

Answered: 1 week ago

Question

★★★★★

A company produces earbuds. The revenue from the sale of x units of these earbuds is R = 8x. The cost to produce x units of earbuds is C = 3x + 1500. In what interval will the company at least break...

Answered: 1 week ago

Question

★★★★★

"Gaining extra revenue is easy for any producer-all it has to do is raise the price of its product." Do you agree? How will the success of the firm's decision to raise price depend on the elasticity...

Answered: 1 week ago

Question

★★★★★

Why is the intersection between firms' best-response functions in Figure 12.2 for the Cournot model or 12.3 for the Bertrand model with differentiated products a graphical illustration of the Nash...

Answered: 1 week ago

Question

★★★★★

Capital and labor are used in fixed proportions to produce an airline flight. It takes two workers (pilots) and one plane to produce a trip. Safety concerns require that every plane has two pilots....

Answered: 1 week ago

Question

★★★★★

Redo Problem 5.34, given 4x12x2+5x3 = 21 3x16x2 x3 = 31 x18x2+3x3 = 37 The augmented matrix is 42521 [A B] 3 6 1 31 1a. Multiply row 1 by: 1 8 3 37 3 6 1 31 1 8 3 37 1b. Subtract 3 times row 1 from...

Answered: 1 week ago

Question

★★★★★

Redo Problem 5.34, given 6x1 + 4x2 = 47 2x1 +9x277

Answered: 1 week ago

Question

★★★★★

Redo Problem 5.34, given The augmented matrix is 4x1 +9x262 5x1+8x2 = 58 la. Multiply row 1 by: 1b. Subtract 5 times row 1 from row 2: 2a. Multiply row 2 by - 13: 4 9 62 [A|B]= 5 8 58 1 5 [ ] 8 58 [...

Answered: 1 week ago

Previous Question Next Question