Economics: Supply and Demand

Table of contents

Managerial Economics

Fatima Abdul-Roof Exercises # 1 Answer the following questions. Explain your answer. An answer with no explanation receives no credit.

1. David Smith must decide whether to start a business renting beach umbrellas at an ocean resort during June, July, and August of next summer. He believes that he can rent each umbrella to vacationers at $5 a day, and he intends to lease 50 umbrellas for the three-month period for $3,000. To operate this business, he does to have to hire anyone (but himself), and he has no expenses other than the leasing costs and a fee of $3,000 per month to rent the location of the business. David is a college student, and if he did not operate this business, he could earn $4,000 for the three-month period doing construction work.

  • A. If there are 80 days during the summer when beach umbrellas are demanded, and if David rents all 50 umbrellas on each of these days, what will be his accounting profit for the summer?
  • B. What will be his economic profit for the summer?

2. If the demand curve for wheat in the United States in 2001 was P=12. 4-Q, where P is the farm price of wheat (in dollars per bushel) and Q is the quantity demanded of wheat (in billions of bushels), and the supply curve for wheat in the United States at the same time was P=-2. 6+SQ, where SQ is the quantity supplied of wheat (in billions of bushels).

  • A. What is the equilibrium price of wheat?
  • B. What is the equilibrium quantity of wheat sold?

3. From November 2007 to March 2008, the price of gold increased from $865 an ounce to over $1,000 per ounce. The increase in price had little to do with the increase in demand from the Jewelry industry but significant increase from investors who looked at gold as a safe haven to invest in.

  • A. Was the increase in the price of gold due to a shift in the demand curve for gold, a shift in the supply curve for gold, or both?
  • B. Did the increase in the price of gold affect the supply curve for gold Jewelry? If so, how?

Reference

  1. Bruce Allen, K. Weight, N. Doherty, and E. Mansfield (2009).
  2. Managerial Economics: Theory, Application, and Cases. Seventh Edition. W. W. Norton.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Nursing
I just need some minor alterations. Thanks.
Customer 452547, February 10th, 2021
Business and administrative studies
always perfect work and always completed early
Customer 452773, February 21st, 2023
Criminal Justice
This has been the greatest help while I am recovering from an illness. Thank your team so much.
Customer 452671, May 2nd, 2021
Philosophy
Thank you
Customer 452811, February 17th, 2024
Human Resources Management (HRM)
excellent
Customer 452773, July 11th, 2023
BUSINESS LAW
excellent job made a 93
Customer 452773, March 22nd, 2023
Sociology
THANK YOUUUUU
Customer 452591, March 18th, 2021
Business and administrative studies
great job as always
Customer 452773, February 26th, 2023
Human Resources Management (HRM)
excellent
Customer 452773, June 25th, 2023
Business and administrative studies
Perfect
Customer 452773, February 23rd, 2023
FIN571
excellent
Customer 452773, March 15th, 2024
Business Studies
Thank you very much for a good job done and a quick turn around time.
Customer 452615, March 31st, 2021
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp