Homework #3

Homework #3 - Darial Sneed @02638624 Managerial Economics...

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Darial Sneed @02638624 Managerial Economics 12:40 Class Homework #3 Questions: 3.1,3.5, 3.8 Homework #3: 3.1, 3.5, 3.8 3.1 Question: The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum Qd= 317,500 – 10,000P (demand) Qs= 2,500 + 7,500P (Supply) Where Q is quantity measured in pounds of scrap aluminum and P is price in cents. Complete the following Answer: Price (1) Quantity Supplied (2) Quantity Demanded (3) Surplus (+) or Shortage (-) (4)= (2) – (3) 15cents 2,500 + 7,500 (15) = 115,000 317,500-10,000(15) = 167500 115,000-167,500= -52500 shortage 16 2,500 + 7,500(16) = 122,500 317,500-10,000(16) = 157500 122,500-157500= -35000 shortage 17 2,500 + 7,500(17) = 130,000 317,500-10,000(17) = 147500 130,000-147,500= -17500 shortage 18 2,500 + 7,500(18) = 137,500 317,500-10,000(18) = 137500 137,500-137,500= 0 neither 19 2,500 + 7,500(19) = 145,000 317,500-10,000(19) = 127500 145,000-127,500= 17500 surplus 20 2,500 + 7,500(20) = 152,500 317,500-10,000(20)= 117500 152,500-117,500= 35000 surplus 3.5 Question: The Creative Publishing Company (CPC) is a coupon book publisher with markets in several southeastern states. CPC coupon books are sold directly to the public,
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Homework #3 - Darial Sneed @02638624 Managerial Economics...

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