The demand and supply of detergent are given by QD = 7,000 – 1,000P and QS = 1,000P – 1,000, where P is price per gallon and Q is in gallons. What happens at a price ceiling of $2 per gallon?

A donut shop has noticed that when they increase the price of chocolate donuts by 5%, the quantity demanded of breakfast sandwiches decreases by 1%. The cross-price elasticity of demand for breakfast sandwiches is _____, so the two foods are _____.

Suppose the equilibrium price for renting an apartment is $800 per month. Concerned about the cost to tenants, the government imposes a price ceiling of $400 per month. This policy will _____.

Refer to the following figure. Suppose a firm spends $4,000 per day producing a good. The wage rate per worker is $400 per day and rental rate per unit of capital is $1,000 per day. The firm’s isocost line at the current expenditure level is represented by

If a firm has market power but cannot prevent its customers from reselling the product, then the firm will

In the market for apartment rentals, the demand and supply equations are given by QD = 9,000 – 2P and QS = 3P + 1,000, where P is the price per apartment and Q measures the quantity of apartments. What is the equilibrium quantity?

A firm is producing 8 units of output at an average total cost of $40. When the firm produces 9 units of output, average total cost rises to $54. What is the marginal cost of the 9th unit of output?

Suppose the supply curve for backpacks is Q = 2P – 36. What is the highest price at which no producer is willing to sell backpacks (i.e., the supply choke price)?

A perfectly competitive firm maximizes profit by producing 500 units of output, selling each unit for $5. The firm’s average variable cost is $2, and its average fixed cost is $1. What is the firm’s profit?

In the market for apartment rentals, the demand and supply equations are given by QD = 5,000 – 3P and QS = 5P + 1,000, where P is the price per apartment and Q measures the quantity of apartments. What is the equilibrium quantity?