BUSI 620 help Making Decisions/uophelp.com BUSI 620 help Making Decisions/uophelp.com | Seite 18

Salvatore’s Chapter 9:
a) Problems: 7, 11, and spreadsheet problem 1.
Problem 7: From figure 9-4, determine the effect of a 33 percent tariff
on commodity X
Problem 11: Most book publishers pay authors a percentage of the
revenue from book sales. Explain the conflict that this creates between
publishers and authors.
Spreadsheet problem 1: If the market supply function of a commodity is
QS=3,250 and
a) the market demand function is QD=4,750-50P is expressed in dollars,
use Excel to calculate values QD and QS for P from 25 to 50 in 1’s.
b) If the market demand increased to Q’D=5,350-50P, what is the
equilibrium price?
c) If the market demand decreased to Q’’D=4,150-50P, what is the
equilibrium price?
d) For (a)-(c), if TC=0.005Q2-Q, what is the profit in each case?
Froeb et al.’s Chapter 9:
a) Individual problems: 9-3 and 9-4.
Individual Problem 9-2
Because beer and marijuana are seen as substitutes, beer sellers would
have opposed the legalization of marijuana. But since snack foods are
a complement to marijuana, snack food sellers would have been in
favor of legalization of marijuana.
‘Individual problem 9-3: Snack food vendors and beer distributors earn
some monopoly profits in their local markets but see them slowly erode
from various new substitutes. When CA voted on legalizing marijuana,