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
Bingel [31]
3 years ago
10

Qd = 600 – 4p – 0.03M – 12 Pr + 5T + 6Pe + 1.5N Where Qd = quantity demanded for commodity A; P = price of commodity A; M = cons

umer's income, Pr = price of related commodity (good ‘B'), T = consumer's taste, Pe = expected price of commodity A, N = number of buyers in the market. A. Interpret the intercept parameter in the generalized demand function. B. What is the value of the slope parameter for the price of good A? Does it have the correct algebraic sign? Why? 4. Yes since indirectly proportional. C. Interpret the slope parameter for income for income. Is good ‘A' normal or inferior? Explain. 0.03. Since Em less than 1 it is normal goods d. Are goods A and B substitutes or complements? Why? Interpret the slope parameter for the price of good B. E. Are the algebraic signs on the slope parameters for T, Pe, and N correct? Explain f. Calculated the quantity demanded for good ‘A' when P = $15, M = $25000, Pr = $40, T = 6.5, Pe = $5.25 and N = 2000? [PU 2011 spring]
Business
1 answer:
NISA [10]3 years ago
5 0

Answer:

A. It implies a fixed 600 units of commodity A will always be demanded without being influenced by any factor that determine the quantity demanded for good ‘A'.

B. 4. Yes.  The reason is that the price of good A is indirectly proportional to the quantity demanded for good ‘A'.

C. It implies that the quantity demanded for good ‘A' decreases by 0.03 as the consumer's income increases by $1. It is an inferior good.

d. Goods A and B are complements since the negative sign implies that the quantity demanded for good ‘A' decreases as the  price of related commodity (good ‘B') (Pr) increases. The interpretation of the the slope parameter for the price of good B is that the quantity demanded for good ‘A' decreases by 12 units as the price of related commodity (good ‘B') (Pr) increases by $1.

E. Yes, the algebraic signs on the slope parameters for T, Pe, and N are correct. The reason is that quantity demanded for good ‘A' will increase as each of T, Pe, and N increases.

f. Quantity demanded for good ‘A' is 2,374.

Explanation:

A. Interpret the intercept parameter in the generalized demand function.

In the generalized demand function, 600 represents the Interpret the intercept parameter.

This implies that 600 units is a fixed units of commodity A is demanded and this is not affected by any factors that determines the quantity demanded for good ‘A'.

Therefore, it implies 600 units of commodity A will always be demanded.

B. What is the value of the slope parameter for the price of good A? Does it have the correct algebraic sign? Why? 4. Yes since indirectly proportional.

From the generalized demand function, the value of the slope parameter for the price of good A is 4.

Yes, it has a the correct algebraic sign which is a minus sign.

The reason is that the price of good 'A' is indirectly proportional to the quantity demanded for good ‘A'.

C. Interpret the slope parameter for income for income. Is good ‘A' normal or inferior? Explain. 0.03. Since Em less than 1 it is normal goods

The slope parameter for income (M) is -0.03. This implies that the quantity demanded for good ‘A' decreases by 0.03 as the consumer's income increases by $1.

It is an inferior good because the quantity demanded for good ‘A' decreases as the consumer's income increases.

d. Are goods A and B substitutes or complements? Why? Interpret the slope parameter for the price of good B.

Since the slope parameter for price of related commodity (good ‘B') (Pr) is negative (i.e. –12), this implies that goods A and B are complements.

The negative sign implies that the quantity demanded for good ‘A' decreases as the  price of related commodity (good ‘B') (Pr) increases.

The interpretation of the the slope parameter for the price of good B is that the quantity demanded for good ‘A' decreases by 12 units as the price of related commodity (good ‘B') (Pr) increases by $1.

E. Are the algebraic signs on the slope parameters for T, Pe, and N correct? Explain

Yes, the algebraic signs on the slope parameters for T, Pe, and N are correct.

The reason is that quantity demanded for good ‘A' will increase as each of T, Pe, and N increases. This implies that there is a positive relationship between the quantity demanded for good ‘A' and each of T, Pe, and N.

f. Calculated the quantity demanded for good ‘A' when P = $15, M = $25000, Pr = $40, T = 6.5, Pe = $5.25 and N = 2000?

Given;

Qd = 600 – 4p – 0.03M – 12 Pr + 5T + 6Pe + 1.5N ............... (1)

Each of the value is then substituted into equation (1) and we then calculate as follows:

Qd = 600 - (4 * 15) - (0.03 * 25000) - (12 * 40) + (5 * 6.5) + (6 * 5.25) + (1.5 * 2000)

Qd = 2,374

You might be interested in
Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in t
Elza [17]

The answer is marginal revenue (MR) curve above $22.

Explanation:

Jim and Lisa Groomers will maximize its accounting profit when taking it to 0 its economic profits when marginal revenue = marginal costs.

Economic profits are not the same as accounting profits because they include the opportunity costs of investing the money somewhere else. That is whythe long run firm is not able to make economic profits since as they exist, new competitors will enter the market. But in the case of the shoert run, the firms are able to make economic profit, but by doing so, they cannot maximize their accounting profit.

Economic profit = account profit = Opportunity profit

Opportunity cost are extra costs or benefitslost from choosing one activity or investment over another one.

3 0
3 years ago
Olympia Autos Inc. merged with its competitor Vaca Autos Inc. This allowed Olympia Autos to use its technological competencies a
zlopas [31]

Answer:

Olympia Autos Inc. and Vaca Autos Inc.

This merger scenario illustrates the power of synergy.

Explanation:

Synergy is achieved with Olympia Autos Inc that has technological competencies, merging with Vaca Autos' marketing capacities.  This enable the two entities to achieve more as one than they could have achieved individually.   By capturing a larger market share, the two entities have shown that the combination of resources in pursuit of some common objectives is more beneficial than separate efforts.

4 0
3 years ago
Conduct your own social engineering experiments. 1) While at a restaurant, convenience store, bank, place of business, or any sh
alexandr1967 [171]

<u>Explanation:</u>

Note,  in the ICT field, the term social engineering refers to actions that involve the use of cunning to steal sensitive or unauthorized information from someone by means of social or human interactions with them.

For example, such information could be manipulatively gotten;

  • address,
  • age,
  • Social security number,
  • the number of children, etc.

5 0
2 years ago
To form a corporation, the organizers must follow the requirements set forth by the corporation code of the state in which the c
Fantom [35]

Answer: Incorporating a corporation

Explanation:

According to the question, the given process is known as incorporating the corporation. As, the incorporation is one of the type of legal process in which the organization are used the various types of corporate entities to form a corporation.

The corporation is the type of legal entity in an organization which results into the separation of investors and the owner.

According to the question, the organizers uses the proper requirement with the help of corporation code to form a proper corporation.

8 0
3 years ago
What does a physical property that describes how something feels mean
Kay [80]
<span>a physical property that describes how something feels mean is called texture.
texture is the feeling of an object.</span>
6 0
3 years ago
Read 2 more answers
Other questions:
  • Janitor Supply produces an industrial cleaning powder that requires 49 grams of material at $0.20 per gram and 0.40 direct labor
    5·1 answer
  • Which of the following is a primary cause of LO/TO accidents?
    10·2 answers
  • Wassim Masood has been the webmaster for Woori Finance only ten days when Woori's website was flooded with access attempts. Wass
    9·1 answer
  • what statement is true? A. saving are a leakage in the circular flow of income B. Households pay wages to businesses C. Exports
    9·1 answer
  • On January 1, 2021, Frontier World issues $40.6 million of 8% bonds, due in 15 years, with interest payable semiannually on June
    13·1 answer
  • Which of the following are examples of companies operating a globalized world? Check all that apply
    14·1 answer
  • How can i make an assessment about tourism <br><br><br>​
    10·1 answer
  • ​U.S. businesses are increasingly recognizing that international markets provide enormous opportunities for growth and profit. _
    10·1 answer
  • She makes $569.58 a month
    10·1 answer
  • If the before-tax rate of return on a corporate bond is 7%, an individual in the 25% marginal tax bracket would earn a _____ rat
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!