Using the graph below, develop a two- to four-page response in APA format using the following four-question prompt:

July 7, 2023July 7, 2023 Discipline: Business and Management

Using the graph below, develop a two- to four-page response in APA format using the following four-question prompt:

Question 1

What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of five years if the opportunity cost of using funds is 8%?

Question 2

Suppose the supply function for product X is given by Qxs = −30 + 2Px − 4Pz.

  • How much of product X is produced when Px = $600 and Pz = $60?

  • How much of product X is produced when Px = $80 and Pz = $60?

  • Suppose Pz = $60. Determine the supply function and inverse supply function for good X. Graph the inverse supply function.

Question 3

Suppose the own price elasticity of demand for a good X is −5, its income elasticity is −1, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3.

Determine how much the consumption of this good will change if:

  • The price of good X decreases by 6%.

  • The price of good Y increases by 7%.

  • Advertising decreases by 2%.

  • Income increases by 3%.

Question 4

  • A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5. 

  • What is the price of good Y?

  • What is the consumer’s income?

  • At point A, how many units of good X does the consumer purchase?

  • Suppose the budget line changes so that the consumer achieves a new equilibrium at point B. What change in the economic environment led to this new equilibrium? Is the consumer positively or negatively affected by the price change?


Are you struggling with your paper? Let us handle it - WE ARE EXPERTS!

Whatever paper you need - we will help you write it

Get started

Starts at $9 /page

Login Register Reset

How our paper writing service works

It's very simple!

  • Fill out the order form

    Complete the order form by providing as much information as possible, and then click the submit button.

  • Choose writer

    Select your preferred writer for the project, or let us assign the best writer for you.

  • Add funds

    Allocate funds to your wallet. You can release these funds to the writer incrementally, after each section is completed and meets your expected quality.

  • Ready

    Download the finished work. Review the paper and request free edits if needed. Optionally, rate the writer and leave a review.

Place order now