Economics: Supply and Demand

Managerial Economics Fatima Abdul-Roof Exercises # 1 Repartee the subjoined questions. Explain your repartee. An repartee delay no exposition receives no trustworthiness. 1. David Smith must flow whether to rouse a transaction schisming seaboard umbrellas at an main haunt during June, July, and August of proximate summer. He believes that he can schism each umbrella to vacationers at $5 a day, and he intends to lease 50 umbrellas for the three-month continuance for $3,000. To produce this transaction, he does to enjoy to employ anyone (but himself), and he has no expenses other than the leasing costs and a fee of $3,000 per month to schism the precipitation of the transaction. David is a nursery tyro, and if he did not produce this transaction, he could gain $4,000 for the three-month continuance doing reading effort. A. If there are 80 days during the summer when seaboard umbrellas are requireed, and if David schisms all 50 umbrellas on each of these days, what procure be his accounting acquisition for the summer? B. What procure be his economic acquisition for the summer? 2. If the require incurvation for wheat in the United States in 2001 was P=12. 4-Q, where P is the farm cost of wheat (in dollars per bushel) and Q is the share requireed of wheat (in billions of bushels), and the yield incurvation for wheat in the United States at the corresponding span was P=-2. 6+SQ, where SQ is the share gifted of wheat (in billions of bushels). A. What is the makeweight cost of wheat? B. What is the makeweight share of wheat sold? 3. From November 2007 to March 2008, the cost of gold acceptiond from $865 an ounce to aggravate $1,000 per ounce. The acception in cost had dwarf to do delay the acception in require from the Jewelry toil but weighty acception from endowors who looked at gold as a certain enjoyn to endow in. A. Was the acception in the cost of gold due to a remove in the require incurvation for gold, a remove in the yield incurvation for gold, or twain? B. Did the acception in the cost of gold like the yield incurvation for gold Jewelry? If so, how? Reference Bruce Allen, K. Weight, N. Doherty, and E. Mansfield (2009). Managerial Economics: Theory, Application, and Cases. Seventh Edition. W. W. Norton.