Below is the market for funnel cakes at a small community fair.
a) what is the equilibrium price and quantity of the funnel cakes?
b) What is the total consumer spending on funnel cakes at the equilibrium point?
c) Calculate the producer surplus and consumer surplus at equilibrium. Show your work.
d) What would be the result if the suppliers charged $6? Explain.
e) Cheese pretzels are substitute good for funnel cakes at the same fair. Draw a correctly labeled graph of the market for cheese pretzels. Shade the area of consumer surplus.
f) A large number of new guests enter the fair. Illustrate the effect of this change on the same graph from part E.
g) does the consumer surplus increase, decrease, or stay the same as a result of the change from part F? Explain.
h) A new cheese pretzel stand opens at the same fair. On a new graph, illustrate the market for cheese pretzels at this fair before and after the new stand opened.
i) if the large number of new guests entering the fair happened at the same time that the new cheese pretzel stand open how would the equilibrium price and quantity for cheese pretzels change? Explain.
Answers
The equilibrium price and quantity for the funnel cakes are:
EP = 6
EQ = 5
Note that Equilibrium price and quantity is the price and quantity where the demand and supply curve intersect.
What is the total consumer spending on funnel cakes at the equilibrium point?Total consumer spending is given by
Price x Quantity
= 30 Units
What is the producer surplus and consumer surplus at equilibrium. Show your work?The producer surplus is given by the yellow right angled triangle in the attached image. To get the producer surplus, we need to find the area of that triangle.
The Area of the triangle is given as;
1/2 b *h
= 1/2 *3 *6
= 9
Since the consumer surplus is the same dimension, hence, it is also given as
= 9
What would be the result if the suppliers charged $6?If the suppliers charged $6, there will be a cut back in the amount of units demanded to 4 units. The law of supply indicates that price and quantity are inversely proportional, all things being equal.
Large number of guests = increased demand.
Increased demand = increased price.
This is given by the law of demand. Which indicates that price and quantity are inversely proportional, all things being equal.
Does the consumer surplus increase, decrease, or stay the same as a result of the change from part F?No, there will be a shift to the right of the the demand curve, Please see the attached image.
If the large number of new guests entering the fair happened at the same time that the new cheese pretzel stand open how would the equilibrium price and quantity for cheese pretzels change?In this case, there would be a new equilibrium point given that Demand and Supply have both shifted right ward. See attached graph.
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Related Questions
Kai cuts her foot while hiking. She forgot to pack bandages, but she has a tube of superglue and
uses that to seal the wound. Kai's ability to invent a solution uses the
intelligence
component of the triarchic theory of intelligence.
analytical
functional
Practical
fluid
it’s not functional
Answers
Answer:analytical
Explanation:
bc she analyzed the wound and decided to use super glue
Kai's ability to invent a solution uses the analytical intelligence component of the triarchic theory of intelligence. Thus, option A is correct.
What is the Triarchic theory of intelligence?Triarchic theory of intelligence explains the connection here between an individual's personal internal or external worlds as well as the function of experiencing aids experienced teachers in comprehending the constantly changing and interconnected properties of human cognition and its prospective impact on daily life.
Hiking causes Kai to slash her foot. She doesn't have any gauze in her bag, but she does have a tube of superglue, which she utilizes to secure the wound.
She shows encompasses academic work, analytical skills, and divergent thinking. Analytical intelligence is used every time someone has to do work that calls for one to evaluate, compared, assess, evaluate, or arrive at a logical decision.
Therefore, option A is the correct option.
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True or false? mind-body dualism reduces all interior mental states to observable behavior.
Answers
Answer:
False.
Explanation:
What is mind-body dualism?
Mind-body dualism can be defined as a type of dualism which states that the mental state is able to exist outside of the human body and the body can't think, but are irreducible attributes of all mental states.
This ultimately implies that, mind-body dualism doesn't reduce all interior mental states to observable behavior.
The following graph shows the market for sprockets in a local hardware store.
a) identify whether the price of sprockets from $4 - $3 is elastic, unit elastic, or inelastic. Explain.
b) what is the price of sprockets that maximize the hardware store’s revenue? Explain.
c) The price of sprockets is $1. if the hardware store wants to increase its revenue, how should it change the price? Explain.
d) using the midpoint formula, calculate the price elasticity of demand for sprockets when price increases from $2 to $3. Identify the coefficient as elastic, unit elastic, or inelastic.
e) using the midpoint formula, calculate the price elasticity of demand for sprockets when price decreases from $5 to $4. Identify the coefficient as elastic, unit elastic, or inelastic.
f) based on the scenario in part E, how does the decrease in price affect the hardware store’s revenue?
Answers
It is correct to state that the price for sprockets from $4 to $3 is inelastic. See the explanation below.
What is the calculation supporting the answer above?The formula for price elasticity is:
Price Elasticity of Demand = Percentage change in quantity / Percentage change in price.
Percentage change in quantity (for price drop of 4$ to $3) = increase ÷ original number × 100.
= (2/18) * 100
= 11.11%
Percentage change in price drop from 4$ to $3) = decrease ÷ original number × 100.
= (1/4) * 100
= 25%
Hence
Price Elasticity of Demand = 11.11%/25%
PED = 0.4444
Hence the demand is inelastic for the change in price from $4 to $3. This is because the price Elasticity is less than 1.
Because we don't have the function of the graph, we must find the revenue for all the given points.
Recall that Revenue is given as:
Price x Quantity; Hence,
From the above, it is clear that the price that maximizes the revenue the store is $4. This is because, that yields the highest revenue.
Using the midpoint formula the price elasticity of demand for sprockets when price increases for $2 to $3 is?The mid-point formula is given as:
Price Elasticity = A/B where:
A = [(Q2-Q1)/((Q2+Q1)/2)]
B = [(P2-P1)/((P2+P1)/2)]
Q2 = Final Quantity = 18
Q1 = Initial Quantity = 20
P2 = Final Price = $3
P1 = Initial Price = $2
A = [(18-20)/(18+20)/2]]
= -0.02631578947
B = [(3-2)/((2+3)/2)]
= 0.4
PED = -0.026/0.4
PED = -0.065
From the foregoing, the Coefficient is Negative and it is also less than Zero. It means that the good is inferior and the demand for it is inelastic.
Using the midpoint formula the price elasticity of demand for sprockets when price decreases for $5 to $4 is?Using the same formula above we have:
A = [(Q2-Q1)/((Q2+Q1)/2)]
B = [(P2-P1)/((P2+P1)/2)]
Q2 = Final Quantity = 16
Q1 = Initial Quantity = 10
P2 = Final Price = $4
P1 = Initial Price = $5
A = [(16-10)/(16+10)/2]]
= 0.11538461538
B = [(4-5)/(4+5)/2]]
= -0.05555555555
PED = 0.11538461538/-0.05555555555
PED = -2.08
The coefficient here is also negative but above 1. It means that the good is inferior and the price and quantity demanded are inversely related.
However, the value (2) is greater than 1, thus, the demand is elastic. This means there is a strong reaction to quantity demanded when price increases or decreases.
Based on the scenario in part E, how does the decrease in price affect the hardware store’s revenue?
It is to be noted that decreasing the price as given in part E will trigger a drop in sales and a directly proportional reduction in profit. The reason for this is because, as seen in the analysis for E above the product is inferior.
When people perceive a product as inferior, a drop in price will create a substitutionary effect where they opt for a substitute good that is slightly higher.
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Why is it important, regarding quality assurance, for your rabbit to be permanently tattooed
Answers
It is important, regarding quality assurance, for your rabbit to be permanently tattooed because it provides permanent identification for that rabbit.
What is importance of tattooed on animals?A legible tattoo in a rabbit's can help to provides permanent identification for that animal.
It should be noted that American Rabbit Breeders Association (ARBA) shows, that the personal tattoo must be put in the rabbit's left ear.
Hence, It is important, regarding quality assurance, for your rabbit to be permanently tattooed because it provides permanent identification for that rabbit.
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Using three (3) different scenarios, explain why a critical thinker is advised to bracket metaphorical, proverbial, and other forms of symbolic language.
Answers
The reason why a critical thinker is advised to bracket metaphorical, proverbial, and other forms of symbolic language.
Because language are symbolic in nature.It can be used as a quote.It connote a sense of belonging.Why is language vital in critical thinking?Language and language diversity is known to be an aspect that have a huge role in regards to critical thinking and all of its processes.
Note that Language is the key device one can use to communicate via symbols of what we think, experience, etc. Hence, The reason why a critical thinker is advised to bracket metaphorical, proverbial, and other forms of symbolic language.
Because language are symbolic in nature.It can be used as a quote.It connote a sense of belonging.Learn more about critical thinker from
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