Q1. Suppose the annual supply and demand in the U.S market for ice cream cones can be expresses as
Qs =200+150P
Qs =800-100P+0.2I
Where P is the price in dollars per cone. Q is the quantity in units, and I equal monthly income in dollars.
Determine algebraically the equilibrium price and quantity and graph the demand and supply curves for cones assuming the average monthly income is $2,000
Q2. What do you think will happen to the price and quantity of DVDplayers if
A. The availability of good movies to play on DVD players increases?
B. Personal income increases?
C. Tickets prices in local movie theatres decline substantially?
Q3. What is the difference between economies of scale and economies of scope? Provide examples for each of them (one example for each of them will be sufficient)?