9 Russell Janes L- ECN104 : Foundations oF Nanagerial Eeonomios (Problem Stt 4) Tou arethe Sales Manager For.a Beer Company. in Japan. YouFound out that the pet "For ces in vopan is dwen by the Folowing equation: Gd=Too-2P-Pt oY, whcio® @ tne ‘price oF beer, PIs ‘he picoor nuts, an Y¥18 dicrage consumer icone ‘ gulthat happens tothédemand ror bear when the price of Mufe gos up “Ate. beer and nuts demand ‘substitutes or demand.compPloments7_- ~ > pasing ont Aton given, the sign of the price OF Nuts of PAIS Negative, his can indicate that ae the price oF nuts. goes up, the quarry OF beer deman ded falis for ail levels OF price.The demand cune shifts fo the ter inca Ademand complements b. What happens to she demand ror becr When average consumer income llises ? > Basing on the equation given. the sign of the average consumer inc a. ispositive Thisimplies ag Income n quantity demanded An 8 Fall ityels OF price. Me demand curve smngts nghtward._ . Grapivithe demand curve for beer when.and Pn=100 and y= Pn=100, Y= 10,000 Qd=700-2P-10040.1 (10,000) Gd=700;100+W000-2F Arrive Formula Qd= |,0n0-2P : With P is 2er0, d= 1, 600-2(0)= 1,600, 8d= 1/00 When P16 100, @d=1,600 -2(100), d= 1400PROUT HZ Od, Who NG 1S zero. PF 800-2 (0),P=800 When adie 100, P* 800 -'/2(100), P= 750 ees | = ae Demand culve OF Bee! 1000. |t00 1400 «19001800 . Defive the inverse demand cum gat becr. Qd=1,600-2P 2P =1,600-Gd 2.The demand and apply CUES FOr corFCC are given by Qd=op-2 and as =90014P. q. Plot Fic wupply and demand cures on a graph aNd show where +heequilibium occuts. — Given* Demand ano Supply curvCoF coffee d= 600-2Rand Gs= 300t4P _ To graph easier, Find For ihe. equitionium price Ga= Qs. il @00-2P =a00t 4P —GOUSO0=4PtZP 300 = OP. 50 posos= P( Equilibrium Pnce)00- 2, _When P 100, @d=G00 h 75, 0d =@00-: 2075), @d=G00-150 ,Od=: When P= 50, Qd=G00- 4(60), Gd=G00-100,8 when = 400-2(26), Qd= 400-80, & Wen 5:0, Gasb00- +2(0) d= 000'~0, Ad= GOO \ 50,08 Boot4S0), Asx 40020046 8, AS = 800+4(25)As= 00+ 100, 88= 400 = 800t4(0), G6=400t 0, @s= 300 30 pesos=P]~ Equiltorium 6ual Qd=' W00-28,6d =600~2(50), @d= Go0~I00/ad= 500 Gs = 60044P, Gs= §00+4(5)/48= Bo0t200,A6= 500: Equilibrium Quantity = 500 units 13 ou Wele wust hifed to be a business analyst feta Golf ‘éail company y and was foskea | Pics ctor uber __ QI R=2 and T=10 derive the demand Function OF gor bats. R=2,T=10 Qd= 90-27-27 “Gd=40-2"- 2(10) . b.IFR=2 and T=ID. Derige,the supply Function Of GolF balls. eee eee Rea T=10 . - ¥ Qs= = 4t5P-2.5R pose~t "roam Qs= -4+5P=2.5(2) BH 5P-5 __[As=-14t5P i ~__G. Derive the inveree demand runction Fot gol balls. __Wyereeor demand Function Qd=70-2P(romlctiera) eae [FF 25-ead| ~ qi HOW much is the clioke price For gol balls? Choke prec is wheic Gd=0 ~ P=35 ~1/26d, where ad 1s _ P= 851400) syEquilibrium Pace rap, prom(ay 144607 From (0) ——+ ere Sree eee Equilibflum Quantity ” @d=70-2(12). Qd=70-24 , d= 46 Gs =-1415(\2)/8d “tbo, Os. 46 Equilibrium Quantity A fac was a World shortage on Hamu which led fo increase its prec to, 15. What fe the impactto-the equilionumm pee and quantity ? Show eaten at cay Price oF Titanium Increase to 15 ha nial 1-10 ~~ Duling whortagosT=15 : “Od 40-27-27. Qd= 9p-2P-2(15) Qd= 40- 2P-30 Qd= @0-2P : Fquilibnum Assuming @s (tmains tne same, Given: Qd = @0-2P Qs=-14t5P Equilibrium fice : SE RE Qd= as 10, §7= P( since it is price it can haye decimals)jum Pace decreases by 142 pesos Pre shortage Equiibuum Pice ~Equilibnum Pico during shortage 12-10,87= 142 ~ Equilibrium Quantity a Qd=0-2P, Qd=60-2(10,57), d= 60 ~21.14, Qd= 08.80, Ad= 38 (since itis Quantity. its always tolind down) nitare 14 £9(10.57), Ge=-141.92.85, 067068. 66,s = 88 (sitee it Equilibrium Quactity decreiises bys units [ Pre etuane! Equilibrium Quantity - Equilibrium Quanity uring. wtonage a Noise ial .Arcr a Few months, the rubber industry chows that iticfacingia shortage On rubber if [ea to increase ifs price 10 5. The pice OF fitanlum Temaitied cons- fant at (6. What happened to equilibnum price and na guint ain mathe Maticaily. 2 3 Ja Price of Rubber Increase to § 2 =? elSe 39 ki: = 2154 OP. umng Me ‘the plice 0 or of titanium femaine at10.8714, Equilibrium pice increases by 1.07 Pesos| Equilionium Price = (1.64 pesos — Ae ‘Equilibrium Quaviity Gd= 0-2(P) Qd= 60-2¢H1. 64) Od = Go- 29:28 ~Gd= 60.72 , G4=30 Gs>-21.5t6P Qs =-21.5 4 5( 11.04) Qs =-215 $58.2 QS = $677,08= 50 quilibriyim Guankiy