(Answered) Our firms have roughly equal shares of the market for

Economics

our firms have roughly equal shares of the market for farm-raised catfish. The price elasticity of demand for the market as a whole is estimated at -1.5.

a. If all firms raised their prices by 5 percent, by how much would total demand fall?

b. What is the price elasticity if a single firm raises its price (with other firms' prices unchanged? Hint: Use the expression for elasticity in equation 3.8b, EP = (dQ /dP)(P/Q), and note that the individual firm's output Q 1 is only one-quarter as large as total output Q.

c. Suppose that the quantity supplied by the four firms is forecast to
increase by 9 percent. Assuming that the demand curve for catfish is not expected to change, what is your forecast for the change in market price (i.e., what percentage price drop will be needed to absorb the increased supply)?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91549544
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question despite the decline in unionization the presence

Question: Despite the decline in unionization, the presence of unions has an impact on labor conditions in the nonunion sector. List and explain three complications that arise in measurement of the pure union wage advant ...

Question a large video program and internet provider has

Question: A large video program and internet provider has seen a 10% annual rate of subscriber growth over the past three years. The growth rate has been spurred by a marketing department that typically has three or four ...

Question 1 according to the bird and borio readings global

Question: 1. According to the Bird and Borio readings, global economic imbalances arise over time and are often the usually the result of financial or structural economic imbalances that manifest in external imbalances. ...

Question please follow directions and label answerssuppose

Question: PLEASE FOLLOW DIRECTIONS AND LABEL ANSWERS!!!!! Suppose that a firm's production function is given by q = 20E0.50 .The marginal product of labor is 10/E0.50. The market wage for whites is $15, and the market wa ...

Question the questions asked is from business global1 list

Question: The questions asked is from Business Global 1. List and describe/explain international strategies for entering foreign markets. 2. Compare and contrast first-mover and late-mover advantages. The response must b ...

Question for purposes of this paper and the next portion of

Question: For purposes of this paper and the next portion of your marketing project, pretend that you will be opening one of the following businesses in your area: • Food Truck Vendor • Animal Sitting • Bicycle Repair Sh ...

Qstion the talent pipeline and executive onboarding

Question: The Talent Pipeline and Executive Onboarding" Please respond to the following: - Analyze how the talent pipeline offers the best candidates to organizations, and determine how to access the pipeline for your in ...

Question - in february 2015 wal-mart announced that it

Question - In February 2015, Wal-Mart announced that it would increase the pay rate for all its lowest paid workers. Is this wage increase a growth in fixed costs or variable costs? Would it be affected by output? If Wal ...

Question a explain the import substitution

Question: a) Explain the import substitution industrialization strategy and outcomes both good and bad. b) Explain the export promotion industrialization strategy and outcomes both good and bad. The response must be type ...

Question - every year heather hosts a holiday party for her

Question - Every year, Heather hosts a holiday party for her friends. Her party budget is $200. Heater spends her budget on food platters that cost $25 each and on entertainment, which costs $50 per hour. a. Graph Heathe ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert