Saudi Electronic University Optimal Pricing & Quantity Theory Questions Microeconomics CRITICAL THINKING-2 Regulations: This assignment is an individual

Saudi Electronic University Optimal Pricing & Quantity Theory Questions Microeconomics

CRITICAL THINKING-2

Don't use plagiarized sources. Get Your Custom Essay on

Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!

Order Essay

Regulations:

This assignment is an individual assignment.
Students are encouraged to use their own words and submit the assignment in word file..
Students must follow academic writing standards and APA style guidelines.
Support your submission with course material concepts, principles, and theories from the textbook, along with at least two scholarly, peer-reviewed journal articles.
A mark of zero is awarded for any submission that includes copying from other resources without proper referencing it.
Write at least 4-5 pages in length, excluding the title page, abstract and required reference page, which is never a part of the minimum content requirements.
It is strongly encouraged that the student submits his/her assignment into the Safe Assignment Originality Check before sending it to your instructor for grading.

Q1. According to the USA Today newspaper in March 2010:

“A frigid Florida winter is taking its toll on your sandwich. The sunshine state is the main U.S.source for fresh winter tomatoes, and its growers lost some 70 percent of their crop during January’s prolonged cold weather.The average wholesale price for a 25-pound box of tomatoes is now $30, up from $6.50 a year ago.Florida’s growers would normally ship about 25 million pounds of tomatoes a week; right now, they are shipping less than a quarter (8million).High demand has driven up prices and wholesalers are buying from Mexico. Based on that, some restaurants provided tomatoes only on request.”

Using the information above find the demand and supply curves in the market for winter tomatoes. (5 Marks)
Calculate the price elasticity of demand for winter tomatoes as well as elasticity of supply using the midpoint method. (5 Marks)

Q2. Sub Mart Inc. needs to decide the optimal price to charge and the optimal quantity to supply in the market. The demand function of the product is given as QD=40-2P, while the supply function of the product is given as QS=2P where P is the price, QD is quantity demanded, and QS is quantity supplied. Solve the following demand function is given as: QD=40-2P. Calculate the equilibrium price and quantity. (5Marks)

Q3.Consider the demand for apples. If the prices of a substitute good(bananas) increases and the price of a complement good (apple pie) increases, can you tell for sure what will happen to the demand for apples? Why or why not? Illustrate your answer with a graph.

Q4. The market for pizza has the following demand and supply schedule (5 Marks)

Price

Quantity Demanded

Quantity Supplied

135

104

110

121

Graph the demand and supply curves
What is the equilibrium price and quantity in this market?
If the actual price in this market is above the equilibrium price what would drive the market towards the equilibrium?
If the actual price in this market is belowthe equilibrium price what would drive the market towards the equilibrium?

End of Page

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Type of paper needed:

Pages:

Academic level:

Total price:

$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.