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- Let ={ ag? + 4, 92 2, Į 3q + 1, 0 2, be the demand function for a manufacturer's product, where q is the number of product units demanded and p is the price per unit in dollars. Assume also that p is continuous on the interval (0, ). Then when five units are demanded, an increase of one extra unit demanded corresponds to A. an increase of approximately $7.5 in the price per unit that consumers are willing to рay. B. a decrease of approximately $6 in the price per unit that consumers are willing to pay. C. an increase of approximately $4.5 in the price per unit that consumers are willing to раy. D. a decrease of approximately $1 in the price per unit that consumers are willing to рay. E. no change in the price per unit that consumers are willing to payQ-3 a) You want an investment of 63% from the total amount of Rs. 7, 30,000/- to a saving certificates. The interest rate is 10%, compounded quarterly for the two years. What is the total amount of interest and interest rate over the 5-year. b) Suppose that the demand and supply functions for good X are Qd = 70-8P Qs = 15+ 10P %3D i) What is the market outcome if price is Rs. 2.75? What do you expect to happen? Why? What is the market outcome if price is Rs. 4.25? What do you expect to happen? Why? ii)Mari and Tess are shopping for a cellphone accessories. Mari's demand function is Qx 500 - 5P %3D while Tess demand function is Qx = 200 - 3P. If the price is Php75, what will be their combined demand? *
- You are the manager of Zokia Ghana Limited, a producer of beans. In Ghana, it is possible to produce beans or groundnut using the same resources. Therefore, producers are able to sw itch from beans to groundnut production depending on market conditions. Consequently, Zokia consulted an Economist who estimated the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479 Explain to your Board of Directors why management should be worried about a rise in the price of groundnut.You are the manager of Zokia Ghana Limited, a producer of beans. In Ghana, it is possible to produce beans or groundnut using the same resources. Therefore, producers are able to sw itch from beans to groundnut production depending on market conditions. Consequently, Zokia consulted an Economist who estimated the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479 Determine the equation of the demand curve for beansYou are the manager of Zokia Ghana Limited, a producer of beans. In Ghana, it is possible to produce beans or groundnut using the same resources. Therefore, producers are able to sw itch from beans to groundnut production depending on market conditions. Consequently, Zokia consulted an Economist who estimated the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479 As a result of the effect of COVID-19 on the economy, the government has proposed an income cut policy. Labour unions…
- You are the manager of Zokia Ghana Limited, a producer of beans. In Ghana, it is possible to produce beans or groundnut using the same resources. Therefore, producers are able to sw itch from beans to groundnut production depending on market conditions. Consequently, Zokia consulted an Economist who estimated the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479 Using the concept of own price elasticity, advise management on price change in order to increase revenue.Suppose that the demand curve for visits to Grand Teton National Park is given by p = 4000 - x, where p measures the total price per visit and x measures the number of visits per month (in hundreds). Suppose that we have access to a cross-section of last year's visits to the site from which we're able to infer that the average household cost per visit during 2023 was $1,800. 1. What is the implicit valuation of the site to society? 2. Suppose that the average household cost per visit increases in 2024 to $2,500 due to more expensive airfare. What is the implicit valuation of the site to society? Does it increase or decrease?В.2 (1). Mr. Majid is a wholesaler in Mutrah market. The main items he sell in the Seeb market are Wheat, Rice and Sugar. Jasim LLC is a retailer in Barka who buys wheat, rice and sugar from Majid, in whole sale since ten years for the retail shop. As they are in a very good trade relationship Majid planned to give him a trade discount of 20%, 25% and 30% on wheat, rice and sugar respectively. If Jasim LLC, gets such a discount from Majid , they will be able to sell the items in the below mentioned list prices: Items Total list price Wheat ( 500 kg) OMR 899.50 Rice ( 1000 kg ) OMR 1002.90 Sugar ( 900 kg) | OMR 999.50 You are required to: (a) What price Jasim LLC should pay to buy the Wheat to Mr. Majd, the wholesaler? (b) What price Jasim LLC should pay to buy the Rice to Mr. Majid, the wholesaler? (c) What price Jasim LLC should pay to buy the Sugar to Mr. Majid, the wholesaler?
- In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. By mid-2008, it became apparent that the recession would kill the demand for conventions. Now, you forecast that you will be able to sell only 10,000 room-nights, which cost $80 per room per night to service. You spent $25.00 million on the hotel in 2008, and your cost of capital is 10%. The current going price to sell the hotel is $20 million. If the estimated demand is 10,000 room-nights, the break-even price is:__?____per room, per night. (Hint: Remember that the cost of capital is the opportunity cost, or true cost, of making an investment.)As newly appointed “Energy Czar,” your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative proposals designed to accomplish this goal: (a) a tax that would effectively increase the price of residential heating fuel by $1, (b) a subsidy that would effectively reduce the price of natural gas by $3, or (c) a tax that would effectively increase the price of electricity (produced by hydroelectric facilities) by $4. To assist you in your decision, an economist in your office has estimated the demand for residential heating fuel using a linear demand specification. The regression results are presented as follows. Based on this information, which proposal would you favor? Explain.An analyst for FoodMax estimates that the demand for its Brand X potato chips is given by ln QdX = 12.14 – 2.8 ln PX + 3.4PY + 0.7 ln AX, where Qx and PX are the respective quantity and price of a four-ounce bag of Brand X potato chips, PY is the price of a six-ounce bag sold by its only competitor, and AX is FoodMax’s level of advertising on Brand X potato chips. Last year, FoodMax sold 7 million bags of Brand X chips and spent $0.42 million on advertising. Its plant lease is $2.1 million (this annual contract includes utilities) and its depreciation charge for capital equipment was $2.8 million; payments to employees (all of whom earn annual salaries) were $0.8 million. The only other costs associated with manufacturing and distributing Brand X chips are the costs of raw potatoes, peanut oil, and bags; last year FoodMax spent $2.8 million on these items, which were purchased in competitive input markets. Based on this information, what is the profit-maximizing price for a bag of…