Economics: Supply and Demand
Fatima Abdul-Roof Exercises # 1 Acknowledgment the afterward questions. Explain your answer. An acknowledgment with no account receives no credit.
1. David Smith charge adjudge whether to alpha a business renting bank umbrellas at an ocean resort during June, July, and August of abutting summer. He believes that he can appoint anniversary awning to vacationers at $5 a day, and he intends to charter 50 umbrellas for the three-month aeon for $3,000. To accomplish this business, he does to accept to appoint anyone (but himself), and he has no costs alternative than the leasing costs and a fee of $3,000 per ages to appoint the area of the business. David is a academy student, and if he did not accomplish this business, he could acquire $4,000 for the three-month aeon accomplishing architecture work.
A. If there are 80 canicule during the summer back bank umbrellas are demanded, and if David rents all 50 umbrellas on anniversary of these days, what will be his accounting accumulation for the summer?
B. What will be his bread-and-butter accumulation for the summer?
2. If the appeal ambit for aureate in the United States in 2001 was P=12. 4-Q, area P is the acreage amount of aureate (in dollars per bushel) and Q is the abundance accepted of aureate (in billions of bushels), and the accumulation ambit for aureate in the United States at the aforementioned time was P=-2. 6+SQ, area SQ is the abundance supplied of aureate (in billions of bushels).
A. What is the calm amount of wheat?
B. What is the calm abundance of aureate sold?
3. From November 2007 to March 2008, the amount of gold added from $865 an ounce to over $1,000 per ounce. The access in amount had little to do with the access in appeal from the Jewelry industry but cogent access from investors who looked at gold as a safe anchorage to advance in.
A. Was the access in the amount of gold due to a about-face in the appeal ambit for gold, a about-face in the accumulation ambit for gold, or both?
B. Did the access in the amount of gold affect the accumulation ambit for gold Jewelry? If so, how?
Bruce Allen, K. Weight, N. Doherty, and E. Mansfield (2009).
Managerial Economics: Theory, Application, and Cases. Seventh Edition. W. W. Norton.
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