# 8.2 How perfectly competitive firms make output decisions  (Page 21/28)

 Page 21 / 28
• Card 21 / 28:
Look at . What would happen to the firm’s profits if the market price increases to \$6 per pack of raspberries?

Holding total cost constant, profits at every output level would increase.

• ## Keyboard Shortcuts

 Previous Card ← Previous Card Button Next Card → Next Card Button Flip Card ↑ / ↓ / Return / Space

causes of high elasticity of demand
causes of high elasticity of supply
Onyango
I think there' s a mistake. P = - 0.4 + 0.2Qs is the supply curve and not the demand curve. Am I correct?
Qs is quantity supplied
The
This is what I think
The
this eaquation is supply curve Qs=P-0.4 the relationship is positive when the price increase the Qs increase....
mukhtaar
since Qs is quantity supplied P= -0.4 + 0.2Qs =>P +0.4=0.2Qs =>P/0.2 + 0.4=Qs I made Qs the subject of the formula or equation. So your answer is correct
The
P = -0.4 + 0.2Qs is the same as P/0.2+0.4=Qs Price has a direct relationship with the quantity supplied i.e the higher the price the higher the quantity supplied. that is why it is +0.4(this is the quantity and it is postive) and P/O.2(is the price and it is positive).
The
For the demand equation let me give an example 0.2P-0.4=Qd. Here the P is postive(+0.2) and the quantity which is -O.4 is negative( because of the negative sign(-) there is an inverse relationship between price and quantity. For quantity demanded the higher the price the lower the quantuty.
The
It's how I understand it
The
0.2P-0.4=Qd. the equation is wrong because the price have direct ralationship Quantity demanded but the correct equation is-0.2P -0.4=Qd so the higher price the lower Quantity
mukhtaar
I think the relationship is inverse because of the negative sign(-)
The
ok You mean the price and quantity demanded should be negative(inverse relationship) for Qd and the price and quantity supplied should be postive(direct relationship) for Qs
The
thank you for the correction
The
yes because it got a positive gradient of +0.2
Michael
This is the mistake I found: "Since P is on the vertical axis, it is easiest if you solve each equation for P. The demand curve is then P = 8 – 0.5Qd and the demand curve is P = –0.4 + 0.2Qs. Note that the vertical intercepts are 8 and –0.4, and the slopes are –0.5 for demand and 0.2 for supply."
Valeria
dear price do not depend on quantity. rather quantity depends on price. so the equation should be Qty=0.2Px-0.4
Michael
please can someone generate supply equation for me
ok
Detto
Qs=f(P,Pr,G,E,Z,Pf,)
The
where p is price, Pr is price of related goods, G is goals of a firm E is supplier's future expectation of prices,Z is other related factors, Pf is cost of factors of production.
The
I think it's wrong
The
if Qd=90-p Qs=90+p
The
the coefficient of price must be positive since supply curve is positively slopping
Kotey
yes
The
it's true. thank you
The
welcome
Kotey
ok
The
diagram of perfectly inelastic
chi-square test is used to test A. Analysis of variance B. Association between the qualitative variables C. Difference between means of two distribution drawn from the same population D. Difference between the means of two distribution drawn from different population
Amanuel
Confirm?
Syk
A
Satyanarayana
Lawrence
Thank you
Syk
What is economic?
bilya
is the system that study the difference between resources and the growth population
Messi
Economics studies humanbehaviour as a relation between ends and scarce means which have alternative uses
Kotey
rigth .....but economic has different concepts
Messi
yes
Kotey
what is equilibrium
it is that point where price is equal to output or rather a point where demand is equal to supply
Fung
it is a point where consumer get maximum satisfaction and producers maximise profit or minimise loss
Imtiyaz
thanks
Obed
supply equal demand in one point
Messi
it's a point where supply and demand meets/equal whether profit or loss
deany
how to compute budget constraint
how to calculate balance of payment deficit
Fung
How to calculate National income
Obed
what,how and for whom to produce
those are problem that producer face in the process of production due to scarcity
Richman
gm
Diodo
a particular selected product is produced in a systematic hygiene condition and is produced for the customers.
what are the factors of economic growth?
tax, imports and exports, etc
deany
welcome on board
Emmanuel
Explain the paradox of poverty in the midst of plenty?
total production diagram explain
what is the formula of price elasticity demand
%change in Quantity demand/%change in price
how
%change QD / %change P
How can hight interest rate affect the level of GDP?
simple because of high interest it become revenue for our nation and it self it also rise our national income or GDP
how does the government regulate markets and improve market outcomes
The government tries to combatmarket inequities through regulation, taxation, and subsidies. ... Examples of this include breaking up monopolies and regulating negative externalities like pollution.
Governments may sometimes intervene in markets to promote other goals, such as national unity and advancement.
by applying and regulating fiscal and montary policy the concerned govt can improve almost all markets
Khushal
hello
Rock
it does not improve
Hugon
Give the differences between labor&financial markets
this is the differences
Abubakar