Question;Problem 3.4 The operator of a centralized market for electrical energy has received the bids shown in the table below for the supply of electrical energy during a given period.;Company;Amount (MWh);Price ($/MWh);red;100;12.5;Red;100;14;Red;50;18;Blue;200;10.5;Blue;200;13;Blue;100;15;Green;50;13.5;Green;50;14.5;Green;50;15.5a. Build the supply curve;b. Assume that this market operates unilaterally, that is, that the demand does not bid and is represented by a forecast. Calculate the market price, the quantity produced by each company and the revenue of each company for each of the following loads: 400 MW, 600 MW, 875 MW.;c. Suppose that instead of being treated as constant, the load is represented by its inverse demand curve, which is assumed to have the following form;Where D is the demand, L is the forecasted load and (pie sign) is the price. Calculate the effect that this price sensitivity of demand has on the market price and the quantity traded.
Paper#57600 | Written in 18-Jul-2015Price : $32