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harlequinmoose441Lv1

11 Dec 2019

What would the new equilibrium price of tutoring services be if Carlos decided to stop tutoring?

Price per hour Quantity Supplied by Ann Quantity Supplied by Carlos Quantity Supplied by Bob Market Quantity Supplied Market Quantity Demanded

$50 94 19 35 148 5

45 93 14 33 140 8

40 90 10 30 130 11

35 81 6 27 114 16

30 68 2 20 90 22

25 50 0 12 62 30

20 32 0 7 39 39

15 20 0 0 20 47

10 10 0 0 10 57

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Kristelle BalandoLv10

8 Sep 2020

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Related questions

Below is data on the weekly quantity demanded of pizza in a small town in South Georgia, prices, and average household incomes. Use the data to perform a linear regression analysis of price and income on quantity demanded. (20 points) a) How well does the regression fit the data?

b) What is the income elasticity of demand for pizza when the income (M) is $40 (thousand) and the price (P) is $30?

	Quantity (Q)	Price (P)	Income (Y) in thousands
1	183	29.25	30.72
2	207	30.1	37.57
3	183	30.54	29.43
4	192	28.67	37.2
5	182	30.23	35.87
6	217	29.76	35.16
7	180	31.77	27.7
8	195	31.01	32.96
9	200	29.21	32.3
10	198	30.79	36.1
11	195	29.75	32.68
12	205	29.98	37.49
13	182	30.06	31.32
14	218	28.94	38.67
15	231	29.76	34.82
16	212	27.94	42.27
17	222	30.75	40.03
18	150	28.96	30.02
19	183	30.96	34.3
20	158	29.03	29.89
21	199	30.83	35.27
22	196	30.6	33.55
23	234	29.98	40.03
24	171	29.27	29.91
25	171	31.42	33.69
26	170	29.24	31.51
27	210	27.61	30.6
28	184	30.64	34.36
29	223	29.97	37.59
30	177	31.87	31.78
31	168	30.06	27.47
32	192	28.83	40.64
33	201	30.91	36.2
34	207	29.84	38.05
35	241	29.94	39.55
36	216	30.67	35.38
37	193	31.03	40.42
38	187	28.45	37.29
39	194	30.02	29.68
40	212	30.85	40.61
41	141	30.46	28.23
42	217	28.85	36.87
43	194	29.34	36.59
44	182	30.1	29.56
45	225	28.88	36.26
46	214	30.2	34.29
47	198	28.56	41.7
48	183	29.51	30.92
49	206	29.86	31.22
50	198	30.83	32.39

silverelephant47

Redstone Clayworks Inc. is located in Sedona, Arizona, and manufactures clay fire pits for patios. They are one of about two dozen firms around the world that manufacture and sell clay fire pits for retailers such as Home Depot, Lowe's, Front Gate, and other upscale home product chains. There is virtually no product differentiation. A clay fire pit is a clay fire pit.

The spreadsheet below gives some of Redstone's production cost data.

Assume that the world market demand and supply curves for clay fire pots intersect at $190 per unit.

Q	TC	TFC	TVC	AFC	AVC	ATC	SMC	TR	MR	Profit	Average	Profit
											Profit	Margin
0	7000	7000	NIL	NIL	NIL	NIL	NIL	0	NIL	-7000	NIL	nil
100	14000	7000	7000	70	70	140	70	19000	190	5000	50	26%
200	23000	7000	16000	35	80	115	90	38000	190	15000	75	39%
300	32000	7000	25000	23.33	83.33	106.67	90	57000	190	25000	83.33	44%
400	43000	7000	36000	17.5	90	107.5	110	76000	190	33000	82.5	43%
500	52000	7000	45000	14	90	104	90	95000	190	43000	86	45%
600	74000	7000	67000	11.67	111.67	123.33	220	114000	190	40000	66.67	35%
700	97000	7000	90000	10	128.57	138.57	230	133000	190	36000	51.43	27%
800	111000	7000	104000	8.75	130	138.75	140	152000	190	41000	51.25	27%
900	132000	7000	125000	7.78	138.89	146.67	210	171000	190	39000	43.33	23%
1000	152000	7000	145000	7	145	152	200	190000	190	38000	38	20%

AFC = total fixed cost/total output.

AVC = total variable cost/total output.

ATC = total cost/total output.

MC = change in total cost/change in output.

Total revenue = price * quantity. And given that the demand and supply intersect at $190, which implies that the equilibrium price is $190 because the point where the demand equals the supply determines the price.

MR = change in total revenue/change in output.

Profit = total revenue - total cost.

Average profit = total profit/total output.

Profit margin = total profit/total revenue*100 or (revenue - cost)/revenue*100.

Question:

What level of output should the manager of Redstone choose to produce? Explain your choice in 50-100 words.

limeskunk177

The spreadsheet below gives some of Redstone's production cost data.

Assume that the world market demand and supply curves for clay fire pots intersect at $190 per unit.

Q	TC	TFC	TVC	AFC	AVC	ATC	SMC	TR	MR	Profit	Average	Profit
											Profit	Margin
0	7000	7000	NIL	NIL	NIL	NIL	NIL	0	NIL	-7000	NIL	nil
100	14000	7000	7000	70	70	140	70	19000	190	5000	50	26%
200	23000	7000	16000	35	80	115	90	38000	190	15000	75	39%
300	32000	7000	25000	23.33	83.33	106.67	90	57000	190	25000	83.33	44%
400	43000	7000	36000	17.5	90	107.5	110	76000	190	33000	82.5	43%
500	52000	7000	45000	14	90	104	90	95000	190	43000	86	45%
600	74000	7000	67000	11.67	111.67	123.33	220	114000	190	40000	66.67	35%
700	97000	7000	90000	10	128.57	138.57	230	133000	190	36000	51.43	27%
800	111000	7000	104000	8.75	130	138.75	140	152000	190	41000	51.25	27%
900	132000	7000	125000	7.78	138.89	146.67	210	171000	190	39000	43.33	23%
1000	152000	7000	145000	7	145	152	200	190000	190	38000	38	20%

AFC = total fixed cost/total output.

AVC = total variable cost/total output.

ATC = total cost/total output.

MC = change in total cost/change in output.

MR = change in total revenue/change in output.

Profit = total revenue - total cost.

Average profit = total profit/total output.

Profit margin = total profit/total revenue*100 or (revenue - cost)/revenue*100.

Question:

a. What level of output should the manager of Redstone choose to produce? Explain your choice in 50-100 words.

b. Make a copy of your spreadsheet and triple the fixed costs to 21,000. How does this change your answer to question a? Explain your result in 50-100 words.

whitehound166

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Price per hour	Quantity Supplied by Ann	Quantity Supplied by Carlos	Quantity Supplied by Bob	Market Quantity Supplied	Market Quantity Demanded
$50	94	19	35	148	5
45	93	14	33	140	8
40	90	10	30	130	11
35	81	6	27	114	16
30	68	2	20	90	22
25	50	0	12	62	30
20	32	0	7	39	39
15	20	0	0	20	47
10	10	0	0	10	57