This topic contains a solution. Click here to go to the answer

Author Question: Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. What ... (Read 453 times)

cool

  • Hero Member
  • *****
  • Posts: 570
Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. What is the equilibrium price and the equilibrium quantity in this market? Suppose the current price is 12.00.
 
  What is the quantity of Blu-rays sold? Explain. Is there a shortage or a surplus? How big is it? Explain.

Question 2

Suppose bad weather decreases the wheat harvest by 12 percent. If the price elasticity of demand for wheat is 0.6, how would the crop failure affect the price of wheat? Would the crop failure benefit or harm wheat farmers?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

princessflame2016

  • Sr. Member
  • ****
  • Posts: 298
Answer to Question 1

The equilibrium price is 11.50. The equilibrium quantity is 30 million disks per month. The quantity sold is 20 million disks per month. Although at 12.00 suppliers want to sell 45 million disks, the buyers want to buy only 20 million and so 25 million disks won't be sold. Since the quantity supplied, 45 million disks, is greater than the quantity demanded, 20 million, there is a surplus, 25 million disks.

Answer to Question 2

When the price elasticity of demand is 0.6, a 12 percent decrease in quantity brings about a 20 percent increase in the price. Wheat farmers' total revenue increases because the demand is inelastic. So, taken as a group, wheat farmers' total revenue increases. However, the benefit is distributed unequally. Those farmers whose crop was destroyed because of the bad weather are harmed, whereas those farmers whose crop was spared the bad weather benefited.




cool

  • Member
  • Posts: 570
Reply 2 on: Jun 29, 2018
Gracias!


dawsa925

  • Member
  • Posts: 326
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

For a complete list of videos, visit our video library