Assignment on Economics for Business and Management

Running head: ECONOMICS FOR BUSINESS AND MANAGEMENT
Economics for business and management
Name of the Student:
Name of the University:
Author’s Note:

1
ECONOMICS FOR BUSINESS AND MANAGEMENT
Table of Contents
Answer to question 1:......................................................................................................................2
Answer to question 2:......................................................................................................................4
Key differences between different types of market structures:.......................................................4
Theoretical construct market and market structures and market that exist in practice:...................9
Market structure of rail industry in Britain:...................................................................................11
References list:...............................................................................................................................14

2
ECONOMICS FOR BUSINESS AND MANAGEMENT
Answer to question 1:
QD = 3000 - 10P
QS = -1000 + 10P
Where Q is the number of businesses that need services and P is the monthly fee, in dollars.
a) If the demand is equal to zero, then
So, QD = 3000 - 10P = 0
3000 - 10P = 0
10P = 3000
P= 300
Demand for a computer support service will be equal to zero at monthly fee of 300.
b) If the demand is equal to zero, then
So, QS = -1000 + 10P= 0
-1000 + 10P= 0
10P= 1000
P= 100
Supply for a computer support service will be equal to zero at monthly fee of 100.
c)

3
ECONOMICS FOR BUSINESS AND MANAGEMENT
0 500 1000 1500 2000 2500
0
50
100
150
200
250
300
350
Chart Title
Demand Supply
Demand and supply curve:
Source: created by author
d) At equilibrium, demand and supply will be equal to zero.
QD= QS,
3000 - 10P= -1000 + 10P
20P = 4000
P= 200
QD= 3000 - 10P = 3000- 10*200= 3000-2000= 1000
QD=QS= 1000
Therefore, equilibrium price and quantity demanded is 200 and 1000.
e) If the demand increases leading to new demand curve,
QD1 = 3500 - 10P