Answer:
$52
$ 1.33
- consumer price will increase
- consumer surplus will decrease
- import will decrease
- reduced export
- portends gloom for the general outlook for the economy
Explanation:
Given domestic demand curve, S(p) = 20p⁻⁰°⁵
the domestic supply curve S(p)= 5p⁰°⁵
world price is $7.00
using calculus to determine the changes in consumer surplus
by consumer surplus means in this case supply exceeds demand
we establish the equilibrium point where the supply and demand functions meet or are equal
solving 20p⁻⁰°⁵ = 5p⁰°⁵
20/5 = p⁰°⁵/p⁻⁰°⁵
4 = p⁰°⁵⁺⁰°⁵
4= p = q which is the quantity produced
consumer surplus = maximum price willing to pay - Actual price
= ∫⁴₀ dp dp - p* q
= ∫⁴₀20p⁻⁰°⁵ dp- 7* 4
= 20∫⁴₀p⁻⁰°⁵ dp -28
= 20/0.5 p⁰°⁵- 28
= 40 *4⁰°⁵ - 28 = $52
producer surplus = it is a measure of producer welfare. It is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive
thus producer surplus = p* q - ∫⁴₀ d(s) dp
= 7 * 4 - ∫⁴₀ 5p⁰°⁵ dp
= 28 - 5 ∫⁴₀ p⁰°⁵ dp
= 28 -5 *2/3 p¹°⁵
= 28 -5 *2/3 4¹°⁵
=$ 1.33
welfare from eliminating free trade
- consumer price will increase
- consumer surplus will decrease
- import will decrease
- reduced exports
- portends gloom for the general outlook for the economy
The greatest risk of a low-cost provider strategy is getting lost with overly high price reduction and ending up with lower profit.
<h3>Low-cost / low-price advantage </h3>
It results in high profit only if;
- (1) prices are reduced by less than the size of the cost advantage or
- (2) the added volume is large enough to bring in a bigger total profit despite lower margins per unit sold.
Therefore, the greatest risk is a low profit.
learn more on low cost strategy from here: brainly.com/question/5516605
Answer:
a. Shopping for used cars when the seller has private information about the car unavailable to the buyer
Explanation:
When the market is not able to produce an efficient quantity, then it is said that market is failed. This might happens due to many reasons and asymmetric information is one of them. When there is an asymmetric information, then the sellers of the used car have information about it, but the buyer do not have the full information about the used car.
Hence this leads to inefficient outcome and therefore market fails.
Hence it can be said that a market failure example is Shopping for used cars when the seller has private information about the car unavailable to the buyer.
Hence option first is the correct answer.
Answer: The answer is given below
Explanation:
My assessment of the Under Armour’s performance downturn in North America that first appeared in the fourth quarter of 2016 was that Under Armour’s 2016 downturn was caused as a result of the reduction in the sale and earnings outlook.
Also, the weakened demand that occurred in North America had a negative effect on demand and resulted in the company dropping from 25.7% in the first quarter, to 21.5% in the second quarter and about 15.6% in the third quarter.
In my opinion, reliability and consistency are two of the most important leadership skills for a small business to succeed for a long time. With these two characteristics a small business can build a returning customer base as well as a good rating on review websites. For example, many local barbershops provide consistent quality haircuts which builds reliability and in turn demand and returning customers.
