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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.