The Table Below Shows the Market for Private Long-Term-Care Beds

question 51

Essay

The table below shows the market for private long-term-care beds in two countries, Gothum and Camdon, which have identical demands but different supplies. $\begin{array}{cccc}\hline \begin{array}{c}\\\text { Monthly } \\\text { Fee }\end{array} & \begin{array}{c}\text { Quantity Demanded } \\\text { in Both Countries }\end{array} & \begin{array}{c}\text { Quantity Supplied }\end{array} & \text { Quantity Supplied } \\&&\text { Gothum } & \text { Camdon } \\\hline \$ 1000 & & 180 & 150 \\1100 & 240 & 190 & 170 \\1200 & 230 & 200 & 190 \\1300 & 220 & 210 & 210 \\1400 & 210 & 220 & 230 \\1500 & 200 & 230 & 250 \\1600 & 190 & 240 & 270 \\\hline\end{array}$
a) What are the present equilibrium fee and number of available beds in each country?
b) If demand were to decrease by 60 in each country, what would be the new equilibrium fee and quantity in each country?
c) What explains the different effects in the two counties?
d) From the initial situation in a), suppose that the government in each country wished to increase the quantity of beds available by 20. How much subsidy to residents would be needed in each country?

Understand the role of sales presentations and demonstrations in the sales process.

Comprehend how companies utilize sales force management and analytics to optimize sales performance.

Distinguish between order-getters and order-takers, including their roles and responsibilities in sales.

Recognize the significance of handling customer objections and techniques for overcoming these objections.

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Definitions:

Disposable Income

The amount of income left for an individual or household after paying all taxes, available for spending, saving, or investing.

Autonomous Consumption

The level of consumption that occurs when income is zero, showing the basic level of consumption necessary for survival.

Permanent Income Hypothesis

A theory suggesting that people's consumption decisions are based on their long-term income expectations rather than their current disposable income.

Negative Savings

A situation where spending exceeds income, resulting in a deficit rather than savings.