Question

There is a competitive market for dog treats in Earltown. What would happen to the equilibrium...

There is a competitive market for dog treats in Earltown. What would happen to the equilibrium price and quantity of dog treats if a study showing that treats improve your dog’s behavior is published at the same time that two of the main dog-treat distributors shut down? Use a supply and demand graph in your analysis.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider two markets: the market for cat food and the market for dog food. The initial...
Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same, the equilibrium price is $1.50$1.50, and the equilibrium quantity is 27.027.0. When the price is $10.75$10.75, the quantity supplied of cat food is 51.051.0 and the quantity supplied of dog food is 105.0105.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for dog food....
Draw a supply and demand diagram showing the market equilibrium price and quantity. Now draw a...
Draw a supply and demand diagram showing the market equilibrium price and quantity. Now draw a diagram showing how a perfectly competitive firm might make a loss at this market price. Identify the firm’s quantity supplied, average total cost, and total losses. Finally, use the market supply and demand diagram to show what would happen to bring this market to long run competitive equilibrium.
1. Suppose the U.S. economy moves out of a recession and incomes rise. What will happen...
1. Suppose the U.S. economy moves out of a recession and incomes rise. What will happen to the equilibrium prices and quantities of normal goods? If price stays the same would that be equilibrium? Why or why not? What will eventually happen in the market? What happens to equilibrium price and quantity? Which quantity is affected and how do you know? Would your answer be the same if you were discussing inferior goods? Explain using supply/demand graphs. 2. Draw a...
Suppose that you are an analyst of the perfectly competitive market for oranges. The market is...
Suppose that you are an analyst of the perfectly competitive market for oranges. The market is in long-run competitive equilibrium. a.   Draw a graph for one individual firm showing their MC, ATC, and AVC curves. Indicate the quantity they will produce and show profits (if any) on the graph. b.   Now, imagine that a new orange juice diet craze is sweeping the country; the diet recommends that people replace at least one meal a day with a glass of orange...
If there is a permanent increase (shift) in market demand, what will happen in a competitive...
If there is a permanent increase (shift) in market demand, what will happen in a competitive market in the long run? Group of answer choices Overall market quantity stays the same, price increases Overall market quantity increases, price stays the same Overall market quantity increases, price increases Overall market quantity increases, price decreases
Consider a perfectly competitive market in the short-run with the following demand and supply curves, where...
Consider a perfectly competitive market in the short-run with the following demand and supply curves, where P is in dollars per unit and Q is units per year: Demand: P = 500 – 0.8Q Supply: P = 1.2Q Calculate the short-run competitive market equilibrium price and quantity. Graph demand, supply, and indicate the equilibrium price and quantity on the graph. Now suppose that the government imposes a price ceiling and sets the price at P = 180. Address each of...
Consider a free, open and competitive market where the market demand and market supply lines determine...
Consider a free, open and competitive market where the market demand and market supply lines determine the equilibrium price and quantity of the product bought and sold. Now, due to new and improved technology the firms use to produce the product, the market supply of the product has increased and as a result there is a new equilibrium price and quantity bought and sold. Explain what will happen to the total expenditure of the consumers (increase, decrease, remain the same)...
Consider a perfectly competitive market for re-issue vinyl records, where market demand is given by ??(?)...
Consider a perfectly competitive market for re-issue vinyl records, where market demand is given by ??(?) = ??? − ?? and market supply is given by ?? (?) = ??? + ??. a. What is the equilibrium price for records? b. Depict this market graphically. Fully label your graph, including the y-intercept and the equilibrium price and quantity. c. What would happen to the market if consumers’ incomes increased? Illustrate the effect on the market graphically, and discuss how you...
2. Suppose this market segment was supplied by a competitive market rather than a single firm...
2. Suppose this market segment was supplied by a competitive market rather than a single firm with monopoly power. demand equation is given by P(q) = 10 –q. Its total cost of producing its output is given by the function TC(q) = (q2/8) + q+ 16, Then the demand curve would be the market demand curve, and the marginal cost equation MC(q) = (q/4) + 1. would represent the competitive market supply curve. a.If this were a competitive market, what...
What would happen in the market for gasoline if Saudi Arabia increased its production of oil....
What would happen in the market for gasoline if Saudi Arabia increased its production of oil. What would happen to the equilibrium price and Quantity of gasoline? describe and show supply and demand diagram
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT