Draw the demand function of consumers with income ML and those with income MH , with...
Draw the demand function of consumers with income ML and those with income MH , with ML < MH . [20%]
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Draw the demand function of consumers with income ML and those
with income MH , with...
A monopolist has discovered that the inverse demand function of a person with income M for...
A monopolist has discovered that the inverse demand function of a person with income M for the monopolists product is p = 2M −q. The monopolist has a total cost function, c(q) = 100q. The monopolist is able to observe the incomes of its consumers and to practice price discrimination according to income (second-degree price discrimination). (a) Draw the demand function of consumers with income ML and those with income MH, with ML < MH. [20%] (b) Determine the price...
6. A monopolist has discovered that the inverse demand function of a person with income M...
6. A monopolist has discovered that the inverse demand function of a person with income M for the monopolists product is p = 2M − q. The monopolist has a total cost function, c(q) = 100q. The monopolist is able to observe the incomes of its consumers and to practice price discrimination according to income (second-degree price discrimination). (a) Draw the demand function of consumers with income ML and those with income MH , with ML < MH . [20%]...
Suppose a consumers demand function is dependent on both prices and income and takes the form:...
Suppose a consumers demand function is dependent on both prices and income and takes the form: Qd=500-40P+(1/10)*I (I= income here.) We also know the supply function: Qs=50P+100. What is income elasticity when Income = 1000?
2.2 The inverse demand function of a group of consumers for a given type of widgets...
2.2 The inverse demand function of a group of consumers for a given type of widgets is given by the following expression: 11-10a + 2000 ($) where q is the demand and r is the unit price for this product. a Determine the maximum consumption of these consumers. b Determine the price that no consumer is prepared to pay for this product. c Determine the maximum net consumers' surplus. Explain why the consumers will not be able to realize this...
2.2 The invers e demand function of a group of consumers for a given type of...
2.2 The invers e demand function of a group of consumers for a given type of widgets is given by the following expression: π-10a + 2000 ($) where q is the demand and r is the unit price for this product. a Determine the maximum consumption of these consumers. b Determine the price that no consumer is prepared to pay for this product. c Determine the maximum net consumers' surplus. Explain why the consumer will not be able to realize...
4. (20 points) Consider the demand function D(p;m) mP, where > 0 is consumers' average income....
4. (20 points) Consider the demand function D(p;m) mP, where > 0 is consumers' average income. The supply consists of a monopoly, whose revenue from sales is given by R(p;mpD(p;m) (a) (5 points) Compute the elasticity function, E(p;m)-D'(p;m) b) (5 points) Find the value of p such that E(p; (c) (5 points) Compute the marginal revenue function, MR(p; m) R'(p; (d) (5 points) What is the solution to the equation MR (p 0? Compare 1 your answer to your answer...
The inverse demand function of a group of consumers for a given type of widgets is...
The inverse demand function of a group of consumers for a given type of widgets is given by the following expression: 2.2 π=-104 + 2000 (S) 2.3 2.4 and 2.5 Economists estimate that the supply function for the widget market is given by the following expression: 2.3 4-0.2--40 a Calculate the demand and price at the market equilibrium if the demand is as defined in Problem 2.2 b For this equilibrium, calculate the consumers' gross surplus, the consumers' net surplus,...
4. Consider the demand function D(p;m) = me−p, where m > 0 is consumers’ average income....
4. Consider the demand function D(p;m) = me−p, where m > 0 is consumers’ average income. The supply consists of a monopoly, whose revenue from sales is given by R(p; m) = pD(p; m). (a) Compute the elasticity function, E(p; m) = àD0(p; m) p àD(p;m) (b) Find the value of p such that E(p; m) = 1. (c) Compute the marginal revenue function, MR(p; m) = R0(p; m). (d) What is the solution to the equation MR(p;m) = 0?...
1. (10 points) Market demand Part 1 There are two consumer goods, X1 and 22. Consumers all have income given by m, and...
1. (10 points) Market demand Part 1 There are two consumer goods, X1 and 22. Consumers all have income given by m, and a utility function U (x1, x2) = aln(x1) + ln(x2). The price of the two goods are pı and p2. (a) Find the individual demand functions for Xı and 22. (b) The parameter a differs across consumers. Type A consumers have a = 1. Type B consumers have a = 2. If there is one type A...
There are two consumer goods, xi and x2. Consumers all have income given by m, and a utility function U(, x2) = aln(x1)...
There are two consumer goods, xi and x2. Consumers all have income given by m, and a utility function U(, x2) = aln(x1)+In(x2). The price of the two goods are pi and p2 (a) Find the individual demand functions for x1 and r2 (b) The parameter a differs across consumers. Type A consumers have a = 1. Type B consumers have a = 2. If there is one type A person and two type B people, what is market demand...
2.2 The inverse demand function of a group of consumers for a given type of widgets is given by the following expression: 11-10a + 2000 ($) where q is the demand and r is the unit price for this product. a Determine the maximum consumption of these consumers. b Determine the price that no consumer is prepared to pay for this product. c Determine the maximum net consumers' surplus. Explain why the consumers will not be able to realize this...
2.2 The invers e demand function of a group of consumers for a given type of widgets is given by the following expression: π-10a + 2000 ($) where q is the demand and r is the unit price for this product. a Determine the maximum consumption of these consumers. b Determine the price that no consumer is prepared to pay for this product. c Determine the maximum net consumers' surplus. Explain why the consumer will not be able to realize...
4. (20 points) Consider the demand function D(p;m) mP, where > 0 is consumers' average income. The supply consists of a monopoly, whose revenue from sales is given by R(p;mpD(p;m) (a) (5 points) Compute the elasticity function, E(p;m)-D'(p;m) b) (5 points) Find the value of p such that E(p; (c) (5 points) Compute the marginal revenue function, MR(p; m) R'(p; (d) (5 points) What is the solution to the equation MR (p 0? Compare 1 your answer to your answer...
The inverse demand function of a group of consumers for a given type of widgets is given by the following expression: 2.2 π=-104 + 2000 (S) 2.3 2.4 and 2.5 Economists estimate that the supply function for the widget market is given by the following expression: 2.3 4-0.2--40 a Calculate the demand and price at the market equilibrium if the demand is as defined in Problem 2.2 b For this equilibrium, calculate the consumers' gross surplus, the consumers' net surplus,...
1. (10 points) Market demand Part 1 There are two consumer goods, X1 and 22. Consumers all have income given by m, and a utility function U (x1, x2) = aln(x1) + ln(x2). The price of the two goods are pı and p2. (a) Find the individual demand functions for Xı and 22. (b) The parameter a differs across consumers. Type A consumers have a = 1. Type B consumers have a = 2. If there is one type A...
There are two consumer goods, xi and x2. Consumers all have income given by m, and a utility function U(, x2) = aln(x1)+In(x2). The price of the two goods are pi and p2 (a) Find the individual demand functions for x1 and r2 (b) The parameter a differs across consumers. Type A consumers have a = 1. Type B consumers have a = 2. If there is one type A person and two type B people, what is market demand...
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