Managerial Economics Introduction (Doc)

Running Head: ECONOMICS OF MANAGEMENT
Economics of Management
Name of the Student
Name of the University
Course ID

ECONOMICS OF MANAGEMENT1
Table of Contents
Phase 1.............................................................................................................................................2
Phase 2.............................................................................................................................................5
Equilibrium at t-1..........................................................................................................................5
Equilibrium at t0...........................................................................................................................6
Phase 3.............................................................................................................................................6
Phase 4.............................................................................................................................................7
Reference list...................................................................................................................................9

ECONOMICS OF MANAGEMENT2
Phase 1
For the purpose of this report the chosen industry is fruit.
The demand for the industry is specified as
QD=a−bP
QD specifies demand and P is the price
The supply for the industry is specified as
QS =c +dP
Based on upon the market data demand is obtained as
QD=120 – P
The corresponding supply function is
QS =20+ P
Equilibrium is obtained where demand equals supply
Demand=Supply
¿ , 120−P=20+ P
¿ , P+ P=120−20
¿ , 2 P=100
¿ , P= 100
2
¿ 50