1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
notsponge [240]
3 years ago
14

Market equilibrium Consider the demand function of tofu given by Qd = 150 – 10p + 5pb and the supply function of tofu given by Q

s = 50 + 20p – 7ps, where pb is the price of beef and ps is the price of soybeans. a) Find the equilibrium price (pe) and quantity (Qe) of tofu, in terms of the beef price (pb). Consider the average soybean price to be ps = 2 $/lb. b) Calculate pe and Qe when beef price is pb = 5 $/lb. c) If the price of tofu is fixed at @ 2.5 $/lb, will the market have excess demand or excess supply? Explain. d) The willingness to pay for tofu increased significantly after the Plant-Based Burger Battle organized in Davis. The new demand is given by Qd = 180 – 10p + 5pb). Keeping the same supply function, what are the new pe and Qe? (Consider the same pb = 5 $/lb and ps = 2 $/lb.)
Business
1 answer:
ser-zykov [4K]3 years ago
6 0

Answer:

a) Qs = 50 + 20p - 7ps

= 50 + 20p - 7×(2)

= 50 + 20p - 14

= 36 + 20p

At equilibrium, Q_{d} = Q_{s}

So, 150 - 10p + 5p_{b} = 36 + 20p

So, 20p + 10p = 30p

= 150 - 36 + 5p_{b}

= 114 + 5p_{b}

So, p = (114/30) + (5/30)p_{b}

= 3.8 + 0.17p_{b}

Thus, p_{e} = 3.8 + 0.17p_{b}

Q = 36 + 20p

= 36 + 20(3.8 + 0.17p_{b})

= 36 + 76 + 3.4p_{b}

= 112 + 3.4p_{b}

Thus, Q_{e} = 112 + 3.4p_{b}

b) p_{e} = 3.8 + 0.17p_{b}

= 3.8 + 0.17×(5)

= 3.8 + .85

= 4.65

Q_{e} = 112 + 3.4_{b}

= 112 + 3.4(5)

= 112 + 17

= 129

c) Qd = 150 - 10p + 5pb = 150 - 10(2.5) + 5(5) = 150 - 25 + 25 = 150

Qs = 36 + 20p = 36 + 20(2.5) = 36 + 50 = 86

Thus, there is excess demand as Q_{d} > Q_{s}

d) New Q_{d}= 180 - 10p + 5p_{b}

= 180 - 10p + 5×(5)

= 180 - 10p + 25

= 205 - 10p

Now, new Q_{d} = Q_{s} gives,

205 - 10p = 36 + 20p

So, 20p + 10p = 205 - 36

So, 30p = 169

So, p = 169÷30

So, p_{e} = 5.63

Q = 205 - 10p = 205 - 10×(5.63) = 205 - 56.3 = 148.7

So, Q_{e} = 148.7

You might be interested in
​Quince, Inc. uses a process costing system. It prepares a production cost report for each processing department.
Mandarinka [93]

Answer:

It will be used to determine the balance of inventory accounts

Explanation:

A production cost detail shows in detail the total cost of producing a product. It includes raw materials as well as operating costs. Product costs would be recorded as a current asset on the balance sheet until the goods have been sold. As an asset, it can either be:

  1. raw materials inventory,
  2. work-in-progress inventory,
  3. finished goods inventory, which would be dependent on how far towards completion the product is.
7 0
3 years ago
What was real per capita GDP in 1933 measured in 2008 prices? (Use the data in the table below and a price index of 100/1400 to
Artist 52 [7]
There is some information in the table that is not needed in this problem. To find real per capita GDP in 1933 measured in 2008 prices, just multiply Nominal per capita GDP in 1933 by how many times expensive the prices are in 2008 than they were in 1933. The solution is $444 x 14 = $6,216. So, the answer is $6,216.
7 0
3 years ago
Examples of items deducted to determine an employee's net pay are
lapo4ka [179]

All of these are correct. Each can be deducted to determine net pay.

6 0
3 years ago
Read 2 more answers
Alex is at the hardware store comparing different types of piping for a repair in his home kitchen. He can choose between copper
SIZIF [17.4K]

Answer:

D. Copper is a scarce resource, which increases its value.

Explanation:

Scarcity determine how much a certain type of resources is available. When the resources become less available, The price of that resources tend to increase.

Since producing copper is way harder than producing plastic, Producer needs a way to accommodate the bigger efforts that they need to make to produce the copper. This justify  why the price of copper is higher.

5 0
4 years ago
Read 2 more answers
What is the term for the most significant of early public budget reforms where a governor or mayor would be responsible for prep
ELEN [110]

Answer:

Executive budget

Explanation:

The Executive Budget is a budgetary system that aims to link budgetary-resource allocation and management to the City Council's strategies.

5 0
3 years ago
Other questions:
  • Ayayai Company issued $612,000 of 10%, 20-year bonds on January 1, 2017, at 102. Interest is payable semiannually on July 1 and
    15·1 answer
  • The first step of the budgeting process is to:
    12·1 answer
  • _________ is characterized by claiming that because something cannot be proven false, it must be true unless the opponent can di
    8·2 answers
  • Explain how lowell took advantage of division of labor.
    15·1 answer
  • Most "okies" in california finally escaped the deprivation and uncertainty of seasonal farm labor when they
    7·2 answers
  • As you approach potential investors for you new business, it's important to present them with
    8·2 answers
  • When a customer purchases a product but is not yet ready for delivery, this is referred to as?
    12·1 answer
  • A tight monetary policy means __________.
    15·1 answer
  • Randy plans to save $10,000 per month for retirement starting today. if he earns a 10% annual return (tax free), compounded mont
    8·1 answer
  • GAAP require state and local governments to include in their annual financial reports a budget-to-actual comparison showing actu
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!