Question 21: UK petrol price jumps above £1.50 as oil costs rise Fuel prices have hit record highs in the UK as Russia's invasion of Ukraine continues to affect global oil prices. The average price of petrol jumped to £1.51 a litre, while diesel increased to £1.55. The cost of filling a 55-litre family car with unleaded petrol is now £83, or £85 for diesel. The price of Brent crude oil rose by 4.6% to $102 barrel after Western nations imposed new sanctions on Russia one the world's largest energy producers. -
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- Question 6 At the price of $5 per pack of batteries, Duracell sells 10,000 packs of batteries and Energizer sells 15,000 packs of batteries. When the price rises to $7.50, Duracell sells 12,000 packs of batteries and Energizer sells 16,000 packs of batteries. What is the market supply at a price of $7.50? 12,000 16,000 4,000 28,000 25,000 Question 7 Social welfare (i.e. the sum of producer and consumer surplus) is maximized when the government taxes most goods and services. very few consumers and producers exist within a market the market reaches its equilibrium price and quantity. supply and demand are perfectly inelastic. the government imposes price controls. Question 8 When demand is perfectly elastic, the demand curve is vertical. upward-sloping. U-shaped.…Q8- Suppose the quantity demanded weekly of the Super Titan radical tires is related to its unit price by equation p+x^2=241, where p is measured in dollars and x is measured in units of a thousand. How fast is the quantity demanded changing when x= 13, p= 72, and the price/tire is increasing at the rate of $7/ week? Round the answer to the nearest integer. Dropping at the rate of _______ tires/wkWhat might you infer about the price elasticity of demand for diesel fuel in the short run? In the long run?
- 4. Currently the equilibrium price and quantity in the milk market are $4 per gallon and 100,000 gallons. The Price Elasticity of Demand is determined to be 0.80 while the Price Elasticity of Supply is determined to be 1.20. A price floor is set at 20% above the current equilibrium price. (a) Determine the dollar amount of the price floor. (b) Determine the Qs after the price is imposed. (c) Determine the Qd after the price is imposed.Problem 04-06 At point A on the demand curve shown below, how will a 1 percent increase in the price of the product affect total expenditure on the product? Price (S/week) 7 6 5 4 3 2 1 Demand 0 2 4 6 8 10 12 14 16 18 20 Quantity (units/week) Instructions: Enter your response rounded to the nearest whole number. Total expenditure will (Click to select) by about [ %Question 1 The graphs given below represent the weekly demand function and supply function respectively for the stylus pen. Price (RM) Price (in RM) (12.148) Quantity (in thousand units) (19 188) Quantity (in thousand units) Your company is a manufacturer for stylus writing pen for tablet. Your company will not produce any pen if the price per unit is RM112 or lower. For each RM1 decreases in unit price, the quantity demanded increases by 250 units. The maximum production capacity for the company is 21,000 units per week. Both the demand and supply functions are assumed to be linear. Let be the quantity of stylus pen in thousand units and be the price in Ringgits Malaysia (RM), solve the following questions by applying linear mathematical model, to the situation. a) Find the supply equation. Interpret the slope and intercept(s) for the supply equation. b) Find the demand equation. interpret the slope and intercept(s) for the demand equation. c) Find the equilibrium quantity and price…
- The price of crude oil increased to its highest level due to conditions which impactedsupply. Historically, crude oil has traded at between 70 and 150 USD per barrel. But theprice increased to over 200 USD in March 2022. Growing demand in Canada for crude tobe turned into refined petroleum, coupled with a sharp fall in production in Saudi Arabiahave both been factors in the price increase. Bauxite production in Saudi Arabia for 2017-18 fell 65% year-on-year due to an agreement with OPEC. The Energy InformationAdministration predicts that global consumption of crude oil is likely to be greater thanproduction by 20 million barrels this year.In the US, companies in the steel and alumina industry have put pressure on the USgovernment to relax import controls, warning that otherwise they might run out of petrol.Commentators predict that most steel and alumina producers will be unaffected becausecrude is such a small part of their spending.a. Explain, using supply and demand analysis, why…For each of the determinants of demand in Equation 2.1, identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. Then do the same for each of the determinants of supply in Equation 2.2. In each instance, would equilibrium market price increase or decrease? Consider substitutes such as plug-in hybrids, the Nissan Leaf and Chevy Volt, and complements such as gasoline and lithium ion laptop computer batteries.Producers of a certain brand of refrigerator will make 1600 refrigerators available when the unit price is $320. Ata unit price of $370, 5600 refrigerators will be marketed. Find the equation relating the unit price p of a refrigerator to the quantity supplied x if the equation is known to be linear How many refrigerators will be marketed when the unit price is s4207 refrigerators What is the lowest price at which a refrigerator will be marketed?
- Problem 2 Refer to problem 1.(Problem 1: Auto Mart is a mythical seller of a variety of automobileparts and accessories. Auto Mart's owner, Jonathan Trott, wishes to determine the optimum order quantity for oneof the store's popular wiper blades. The annual demandfor the wiper blades is 16,000. The annual holding costper unit is US$2.50, and the cost to place an order is US$50:) Assuming that holding costs and ordercosts remain the same, if annual demand for wiper blades doubles to 32,000, does the EOQ also Double? Explainyour answer with relevant calculations.The yearly demand for bags of Chinese fortune cookies on the European market is given by Price (in GBP per bag) Quantity supplied (in 100,000,000 units) 0.50 0.60 0.70 0.80 0.90 1.00 1.10 19 16.5 14 12 7.5 5 4 As a result of a shock to the demand side, the equilibrium price changes from £0.80 to £0.70 mln. Calculate the price elasticity of supply.ONLY ANSWER QUESTION #2 1. Online the timing and tailoring of prices to specific models of products is the key to successful pricing in online markets. And “Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online.”Assuming a 10 percent decrease in price increases sales by 28 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $.50 per click and boasts a conversion rate of 5 percent (an average of 20 clicks are needed to generate a sale). What price should you charge for the product? What is the optimal markup on cost? 2. The authors assert that price sensitivity is affected by (1) product life cycles, and (2) numbers of competitors. In fact, “when the number of competing sellers doubles, a firm’s elasticity of demand is expected to double (and you should be able to verify…