If someone colud help with these questions I would be very greatful, Ive been trying for awhile now and Im at my ropes end.
1)The perfectly competitive ice cream industry is assumed to be in longrun equilibrium. Suppose there is an increase in the market demand for ice cream. Assume in your answers that input prices for all firms in the industry don't change when new firms enter or existing firms leave the industry. In the new LONGRUN equilibrium compared to the original longrun equilibrium, it will be true that______.
2)The perfectly competitive ice cream industry is assumed to be in longrun equilibrium. Suppose there is an increase in the market demand for ice cream. Assume in your answers that input prices for all firms in the industry don't change when new firms enter or existing firms leave the industry. In the new LONGRUN equilibrium, it will be true that for the typical firm______.
3)The perfectly competitive ice cream industry is assumed to be in longrun equilibrium. Suppose there is an increase in the market demand for ice cream. Assume in your answers that input prices for all firms in the industry don't change when new firms enter or existing firms leave the industry. In the SHORTRUN, the new equilibrium will be one in which______.
A simple supply/demand problem.
Start by drawing your supply and demand curves. Then show an increase in demand (demand curves shifts out).
1) Price goes up, quantity goes up.
In the shortrun, firms will only have a limited ability to increase output. So, a firm's shortrun supply curve is relatively inelastic (i.e., steep). So, with an increase in demand,
3) the price received by the firm goes up, profits go up, and the firm tries to respond by increasing output as best it can.
However, in the longer run, a firm can do a lot of things. In particular, it can expand plant and equipment. So, the longrun supply curve is more elastic (flatter).
2) A firm will increase output by an amount more than the shortrun increase.
What are the determinants of elasticity of demand and supply?
Having problems trying to figure these out
Question 4. (50 points)
In an auction in the market for wholesale electricity, producers of electricity submit bids
for each generator that they operate. The bid is the minimum price the operator of the
generator is willing to accept for before it will turn it on to supply power to the electricity
grid. To keep the numbers simple, assume that each generator produces one unit of
electricity. In the table below, we see that the operator of generator G1 has put in a bid
for $3. This means that if the price is $3 or more, generator G1 will be switched on. At a
price of $2.99 or below, it will be switched off.
In a double auction, buyers also submit bids. Again, to keep the numbers simple,
assume that each buyer puts in a bid for one unit of power. In the table below, we see
that buyer B1 has submitted a bid to purchase one unit at $14. This means if the price is
$14 or less it will buy one unit. At a price of $14.01 or more, the buyer won’t take any
electricity.
(a) You are the Independent System Operator (ISO) in an electricity market. You
have received the bid information in the table below. Clear the market, i.e. pick P, Q,
and Who. (The “Who” answers which generators produce and which buyers get
electricity.) Obtain your answer two ways. First, make a table. Second, plot the
information on a graph. Either use graph paper to make your graph by hand or use Excel.
Generators Bid
(Offer to sell in $ )
Buyers Bid
(Offer to purchase in $)
G1 3 B1 14
G2 10 B2 4
G3 1 B3 10
G4 5 B4 2
G5 12 B5 15
G6 3 B6 2
G7 1 B7 1
G8 12 B8 15
G9 3 B9 1
G10 4 B10 12
(b) Suppose Acme Power owns generators G1 through G5. Suppose Giant Electric owns
generators G6 through G10. Calculate the revenues each receives as a result of the
auction. (This is the quantity each firm sells times the market price). Suppose that the
bids that are submitted equal the true cost to these firms of operating the individual
generators. Calculate the profit (revenue minus costs) that each firm receives as a result
of the auction.
Background for Part (c)
Auctions work very well when there are a large number of different bidders. However, if
there are only a small number of firms making bids, they can be subject to manipulation.
To illustrate this point, we look at how Acme and Giant might try to manipulate things in
the auction above. (There is evidence that something like this actually happened in
California.)
Regulators have some idea of the fuel costs for producing electricity out of a
given generator. If Acme were to offer a bid of $1000 for operating G1 when the cost is
known to be around $3, this might attract unwanted attention from regulators. Suppose
instead Acme were to say a generator was down for maintenance, even if there was
nothing wrong with it. Acme might be able to get away with this without attracting
notice.
(c) Specifically, suppose Acme and Giant work out the following deal before submitting
bids. Acme says generator G1 is broken, so doesn’t submit a bid for G1. Giant says
generators G6 and G9 are broken. So scratch out G1, G6, G9 in the table above. All
other bids remain the same. Clear the market with both a table and a graph. Calculate
the new price and quantity. Calculate the profit each firm receives as a result of the
manipulation. Do your calculations suggest this manipulation by Acme and Giant is a
good move if they can get away with it?
5. (20 points) Elasticity
(a) Use the information below to calculate an estimate of the shortrun price elasticity of
demand for gasoline. Four months of data are reported, but you only need to use two of
them. Think carefully about which ones you should use.
(b) To calculate a price elasticity of demand, we look at the effect of changing price
while holding everything else affecting demand fixed. List two things that you are
holding fixed in your calculation. List two other things that are not being held fixed in
your calculation that could potentially be a problem for your estimate.
Table 5a Gasoline Shipments in the United States, Various Months
Date
Gasoline
Shipped
(Millions
of Gallons
per Day)
Average
Price
($ per
gallon)
Apr2004 375.7 183.9
Sep2004 374.5 191.2
Dec2004 393.7 188.7
Sep2005 369.8 295.1
Source: U.S. Energy Information Administration
Table 5b Population of the United States
Year Population
(millions)
2004 293.7
2005 296.4
Source: U.S. Census Bureau
i need to know what differentiation, expectations mean an what are the determinants of supply and demand
 👍
 👎
 👁
 ℹ️
 🚩
1 answer

Question 18 of 20
5.0 Points
On a linear demand curve, demand is ________ at the middle of the demand curve than it is at small quantities.
A. equally elastic
B. more elastic
C. less elastic
D. impossible to tell 👍
 👎
 ℹ️
 🚩
answered by tg
Answer this Question
Related Questions

Math
Kosuke wrote a mathematics contest consistingof 25 multiple choice questions, the scoring system gave 6 points for a correct answer, 2 points for not answering, and 1 point for an incorrect answer.Kosuke got x correct and left y unanswered questions a)
 asked by Nancy

english
2.which sentence has proper subject verb agreement? 1.niether harper nor finn are aware of the details 2.Missouri and Illinois are states along the Mississippi River. 3.Either you or I are responsible for cleaning the house this afternoon. 4.Hope, peace,
 asked by yall im chill just leave me alone

math
alan scored a total of 14 points for answering all 15 questions on a math quiz for every correctly answered question alan got 2 points for every wrong ahe lost 2 points how many questions did he answer correclty
 asked by Anonymous

Algebra
equations and inequalities unit test for questions 15, solve the equation 4. 3(42x)=2x (1 point) a. 1*** b. 1 c. 2 d. 3 5. 5.4+0.2x=1.4x+8.6 a. 2 b. 2 c. .2*** d. 20 For questions 67, simplify the expression 6. 4  5(x+8) a.5x  44 b.5x + 36***
 asked by conchobar (connor)

statistics
A multiple choice test has 3 questions and each question has 3 choices. If Nacho takes this test, what is the probability that he will: (a)answer all questions correctly? (b)answer all questions wrong? (c)answer two questions correctly?
 asked by Venice

Economics
HELLLPP!! hi ive already went to brainly for this but can someone pleaseee give answers to the 10th grade economics semester a final exam i usually don't cheat but i'm soo desperate to pass its the 25 question exam. i would of typed out all the questions
 asked by annabell

statistics
On a test, 55% of the questions are answered correctly. If 44 questions are correct, how many questions are on the test?
 asked by Mya

physics help PLZ!!
What is the direction of the net external force on the crate (as an angle between −180◦ and 180◦ , measured from the positive x axis with counterclockwise positive)? Answer in units of ◦ Ive solved for the net external force in the x and y
 asked by allan

Grade 12 Data Management
There are 12 questions on an examination, and each student must answer 8 questions including at least 4 of the first 5 questions. How many different combinations of questions could a student choose to answer?
 asked by Rebecca

ELA
Determine whether the given word is a prefix, suffix, or root word.(2 points) Prefix Suffix Root ive Prefix – ive Suffix – ive Root – ive arch Prefix – arch Suffix – arch Root – arch uni Prefix – uni Suffix – uni Root – uni ist Prefix –
 asked by ELA Help Plz URGENT

Math
An exam consists of six trueorfalse questions. Assuming that every question is answered, in how many different ways can a student complete the exam? In how many ways may the exam be completed if a penalty is imposed for each incorrect answer, so that a
 asked by Anonymous

Science
Anybody know answers for conservation in chemical reactions quick check?? Ive studied really hard for this but i struggle a lot with science. I put answers in and idk if they're right. Please help
 asked by Kenzie

Math
A truefalse test has 5 questions. What is the probability of guessing the correct answers to all of the questions? A. 1/25**** B. 1/10 C. 1/32 D. 1/7
 asked by Cheese

Maths
show that these curves y=2x^2+5x y=x^2+4x+12 y=3x^2+4x6 have one point in common and find it coordinates?? is this done by simultaneous exuasion if so can you show me how because ive try and cant get it to work??
 asked by Mars

language arts 6A
Standard English Unit Test Question Identify the indefinite pronoun that is always singular.(1 point) anybody fewer several some If you are telling a story about the last time you visited your favorite restaurant, what tense should you use?(1 point) past
 asked by hi

maths!
the formula h=15t5t^2 gives the height 'h' metres of a ball, 't' seconds after it is thrown up into the air. (i) find the times when the height is 10m (ii) after how long does the bal hit the ground? ive figured out that the answer to (i) is t= 1 or 2 by
 asked by jessica

math
On a test, the number of questions Pam answered correctly was 1 1/2 times the number of questions she answered incorrectly. If Pam answered 30 questions incorrectly, how many questions were on the test?
 asked by shaniya

Math
A physics exam consists of 9 multiplechoice questions and 6 openended problems in which all work must be shown. If an examinee must answer 5 of the multiplechoice questions and 2 of the openended problems, in how many ways can the questions and
 asked by Anonymous

language arts
I have to use FRETISH in a sentence as a noun and then as a verb. ive looked everywhere for its definition. What does FRETISH mean?
 asked by Anony Mous

chemistry
Nucleophile or electrophile? (1) CH3COOH (2) CH3COO At first, I thought that they were both Nucleophiles, but now Ive confused myself and Im not sure.. Please help!
 asked by Sarah
Still need help?
You can ask a new question or browse existing questions.