MECO480 homework

# MECO480 homework - B The short run elasticity of demand for...

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1.) A. In this case the supply curve would shift further enough to the left for price per bushel to rise from 2.65 up to 5.37. In this case, the quantity demanded would fall to 3244 – (283)(5.37) = 1724.29 million bushels from 2494 million bushels. Yes they have much to worry about if they do not get susidaries from the government. B. The U.S government would have to purchase 1606.7 million bushels of wheat. This would cost them 5623.45 million dollars. 2.) A. The short run price elasticity of demand for roasted coffee is .43. Q= 850 - .43P
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Unformatted text preview: B. The short run elasticity of demand for instant coffee is 5.29. Q = 75 – 5.29P C. Instant coffee has a higher price elasticity… I think this is true because much less people use instant coffee because of its higher price. 3.) A. free market price = 6 hundred dollars. And if the agency set a 300\$ max per month rental fee then the cities population will decrease from 336,000 people to 136,000 people. B. 160 – 8(9) = 88 thousand apartments * .50 = 44 thousand apartments. 4.) the new price of copper will be .645 cents per pound....
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