Graymont industries purchases solvate, a chemical compound used in several of its products, from chemmaster. chemmaster has just increased the list price of solvate to $6.50 per gallon. however, because graymont purchases a high volume of solvate, chemmaster grants the company a 10 percent discount off the list price. charges for shipping solvate from chemmaster to graymont's factory are $100 for a shipment of twenty-five 50-gallon drums. special storage requirements cost $0.55 per gallon. calculate graymont's standard price for a gallon of solvate. (round answer to 2 decimal places, e. g. 3.51)

Total inventory cost for a gallon: $ 6.48

Explanation:

discount over list price: 6.50 dollars less 10% = $ 5.85

gallons ordered: 25's 50-gallon drums:

25 x 50 = 1,250

purchase cost: 1,250 gallon x $ 5.85 = 7,312.5

shipment freight:                                       100    

Total:                                                         7,412.5

Gallon purchase cost: 7,412.5/ 1,250 = 5.93 per gallon

$ 5.93 + holding cost of $ 0.55 = $ 6.48

i guess you could put raise the economic balance

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.