Chapter3 - Mgnt 6005 Homework Chptr 3 P3.1 Demand and...

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Mgnt 6005 – Homework Chptr 3 P3.1 Demand and Supply Curves. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum Q D = 317,500 - 10,000P (Demand) Q S = 2,500 + 7,500P, (Supply) where Q is quantity measured in pounds of scrap aluminum and P is price in cents. Complete the following table: Price (1) Quantity Supplied (2) Quantity Demande d (3) Surplus (+) or Shortage (-) (4) = (2) - (3) 15 4 16 17 18 19 20 P3.1 SOLUTION Price (1) Quantity Supplied (2) Quantity Demande d (3) Surplus (+) or Shortage (-) (4) = (2) - (3) 15 4 115,000 167,500 -52,500 16 122,500 157,500 -35,000 17 130,000 147,500 -17,500 18 137,500 137,500 0 19 145,000 127,500 17,500 20 152,500 117,500 35,000
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P3.2 Demand and Supply Curves. The following relations describe monthly demand and supply relations for dry cleaning services in the metropolitan area: Q D = 500,000 - 50,000P (Demand) Q S = -100,000 + 100,000P (Supply) where Q is quantity measured by the number of items dry cleaned per month and P is average price in dollars. A. At what average price level would demand equal zero? B. At what average price level would supply equal zero? C. Calculate the equilibrium price/output combination. P3.5 Demand Function. The Creative Publishing Company (CPC) is a coupon book publisher with markets in several southeastern states. CPC coupon books are either sold directly to the public, sold through religious and other charitable organizations, or given away as promotional items. Operating experience during the past year suggests the following demand function for CPC = s coupon books: Q = 5,000 - 4,000P + 0.02Pop + 0.375I + 1.5A, where Q is quantity, P is price ($), Pop is population, I is disposable income
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Chapter3 - Mgnt 6005 Homework Chptr 3 P3.1 Demand and...

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