Question 15 (1 point)

The original cost of a comic book was $3.95. The store markup on the comic book was 20%. What is the store's price for the comic

deff fn [24]

Answer:

$3.16

Step-by-step explanation:

3 0

3 years ago

The demand for mineral water is P=10 – (2/3)Q and supply function for mineral water is P=1+(1/3)Q

oksano4ka [1.4K]

Answer:

a.

Equilibrium

We have:

+) Demand function: $P = 10 - \frac{2}{3} Q_{demand}$

=> $Q_{demand} = (10 - P)/\frac{2}{3} = (10-P).\frac{3}{2} = 15 - \frac{3}{2} P$

+) Supply function: $P = 1 + \frac{1}{3} Q_{supply}$

=> $Q_{supply} = (P-1)/\frac{1}{3} = (P-1).3 = 3P - 3$

The market of mineral water is at equilibrium when the quantity of demand is equal to the quantity of supply at a price level.

We have: Qdemand = Qsupply

⇔ $15 - \frac{3}{2} P = 3P - 3$

⇔ $15 + 3 = 3P + \frac{3}{2} P$

⇔ $18 = \frac{9}{2} P$

⇔ $P = 18/ \frac{9}{2} = 18 .\frac{2}{9} = 4$

When P = 4

⇒ $\left \{ {{Q_{demand} = 15 - \frac{3}{2}P = 15 -\frac{3}{2}.4 = 9 } \atop {Q_{supply} = 3P - 3 = 3.4 - 3 = 9}} \right.$

Price elasticity:

At P = 4, Qd = Qs = 9

+) Demand function:

$Q_{demand} = 15 - \frac{3}{2} P$ => $dQ_{D} = -\frac{3}{2}$

Price elasticity of demand is:

$E_{D} = dQ_{D}.\frac{P}{Q_{D} } = -\frac{3}{2} . \frac{4}{9} = -\frac{2}{3}$

+) Supply function:

$Q_{supply} = 3P - 3$ => $dQ_{S} = 3$

Price elasticity of supply is:

$E_{S} = dQ_{S}.\frac{P}{Q_{S} } = 3. \frac{4}{9} = \frac{4}{3}$

So equilibrium price is 4, equilibrium quantity is 9.

Price elasticity of demand is -2/3; Price elasticity of supply is 4/3

b.

Initially, the market is at equilibrium at point A: P=4; Qd = Qs = 9

When a unit of tax is imposed on the suppliers, it will shift the supply curve to the left a distance = t = 3 TL. (We can see in the attached image).

The new supply curve intersects the demand curve at point B.

The market moves to the new equilibrium at point B: Q = Q2; Price producers get after tax = Price consumers pay - Tax

c.

When a unit of tax is imposed, it will result in the difference between the price consumers pay and price producers receive at the equilibrium , which is equal to the tax.

We have:

$P_{D} = 10 - \frac{2}{3} Q_{demand}$

$P_{S} = 1 + \frac{1}{3} Q_{supply}$

And at equilibrium, Q demand = Q supply, so we have the equation:

$P_{S} - P_{D} = t$

⇔ $10 - \frac{2}{3} Q - (1+ \frac{1}{3} Q) = 3$

⇔ 9 - Q = 3

⇔ Q = 9 - 3 = 6

⇒ $P_{D} = 10 - \frac{2}{3} Q_{demand} = 10 - \frac{2}{3} .6 = 6$

$P_{S} = 1 + \frac{1}{3} Q_{supply} = 1 + \frac{1}{3} .6 = 3$

New equilibrium: Quantity = 6

+) Price consumers pay = 6

+) Price suppliers receive = 3

d.

When the tax is imposed on the producers, it will create the burden on both producers and consumers.

As we can see it the attached image, the blue part represents the total tax that the government would receive, it can be calculated as:

Tax revenue = Tax × Equilibrium Quantity = 3 x 6 = 18

The burden of tax on consumers is illustrated by the area of rectangle a

=> Burden tax on consumers = (4 - 3) x 6 = 6

=> Burden tax on producers = 18 - 6 = 12

When the government imposes the tax, if the price elasticity of demand is less than price elasticity of supply, the consumers will have heavier burden of tax.

Vice versa, if the price elasticity of demand is greater than price elasticity of supply, the consumers will have less burden of tax.

=> The more inelastic, the heavier burden of tax and vice - versa

7 0

3 years ago

Please help on both of them:)

dimaraw [331]

The answer to number 1 is B

7 0

3 years ago

| 3. What is the next number in the sequence 20, 10, 5, 5/2

Vitek1552 [10]

Answer:

$\large\boxed{\dfrac{5}{4}}$

Step-by-step explanation:

$a_1=20\\\\a_2=\dfrac{20}{2}=10\\\\a_3=\dfrac{10}{2}=5\\\\a_4=\dfrac{5}{2}\\\\a_5=\dfrac{\frac{5}{2}}{2}=\dfrac{5}{2}\cdot\dfrac{1}{2}=\dfrac{5}{4}$

6 0

3 years ago

Answer and explanation please I failed the last paper!!

Marysya12 [62]

I would say the answer is J because follow the traingle sum theorem, all angles add to 180. There are 2x and you know that one is 80. Hope this helped! :)

5 0

3 years ago

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