Answer: The equilibrium price is $68, Quantity 32 million barrel, The quantity to import is 53 million barrel
Explanation:
Given that D = -2 + (1/2)P, S = 15 - (1/4)P
At equilibrium Qd = Qs
-2 + (1/2)P = 15 - (1/4)P
Change 1/2 P and 1/4 P to decimal we have 0.5, and 0.25 respectively
Collect like terms
-2 -15 = 0.25P - 0.5P
17 = 0.25P
Divide both sides by P
17/0.25 = 0.25P /0.25
68 = P
P = 68
Substitute the value of P into equation 1 and 2 determine the value of Q
-2 + 0.5 (68)
-2 + 34
= 32
15 - 0.25 (68)
15 + 17
= 32
To determine the quantity to import when world price is $11.00 per barrel ,substitute the value into equation 1
-2 + 0.5 (11)
-2 + 55
= 53
Therefore quantity to import is 53 millions barrel
Answer and Explanation:
The computation is shown below;
Given that
Price = P = $90
And, the Marginal cost = MC = $18
a.
Now the markup would be
= (P - MC) ÷ P
= ($90 - $18) ÷ $90
= $72 ÷ $90
= 0.80
= 80%
Now the monopoly markup is
b.
As we know that
Monopoly, markup = 1 ÷ elasticity of demand(e)
e = 1 ÷ markup
= 1 ÷ 0.8
= 1.25
The absolute value of e would always be negative so e = -1.25
Therefore
The firm s price elasticity of demand is -1.25
heterogeneity defined as the variability of inputs and outputs of services, which makes services less standardized and uniform than goods.
Answer:
D. joint tests of market efficiency and the risk-adjustment measure
Explanation:
Semi-strong form efficiency -
In this aspect of the Efficient Market Hypothesis , it assumes that the current price of stock adjust very fast in order to release the new public information .
The one of the major test of the semi - strong efficiency are the ,the risk - adjustment measure and the joint test of the market efficiency .
