Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
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Category > Management Posted 09 Jul 2017 My Price 12.00

computer support service catering

The following relations describe monthly demand and supply for a computer support service catering to small businesses. Qd = 3,000 - 10P Qs = -1,000 + 10p

where Q is the number of businesses that need services and P is the monthly fee, in dollars.

a. at what average monthly fee would demand equal zero?

b. at what average monthly fee would supply equal zero?

c. plot the supply and demand curves

d. what is the equilibrium price/output level?

e. suppose demand increases and leads to a new demand curve:

Qd = 3,500 - 10P

What is the effect on supply? What are the new equilibrium P and Q?

f. suppose new suppliers enter the market due to the increase in demand so the new supply curve is Q = -500 + 10P. what are the new equilibrium price and equilibrium, quantity?

g. show these changes on the graph?

Answers

Maurice Tutor
(5)
Status NEW Posted 09 Jul 2017 09:07 PM My Price 12.00

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