Homework Answers
Quantity demanded by consumer A = 50 - P = 50 - 30 = 20 units
Quantity demanded by consumer B = 50 - 2P = 50 - 2(30) = -10 units
Since there is nothing like negative amount of quantity demanded, consumer B will demand 0 units when price is $30.
Therefore, Total demand = Demand by consumer A + Demand by consumer B
= 20 + 0 = 20 units
C) 20 units
Add Answer to:
Question 2: Consider two populations of consumers (A and B) Their demand for good X is...
5. Consider the following market demand for a good that consumers buy one unit at a...
5. Consider the following market demand for a good that consumers buy one unit at a time (e.g. smartphones, cars, game consoles, etc). Q=620-2P. A market research shows that there are two groups of consumers, A and B, with different sensitivity to price change. Group A’s demand is estimated to be QA=200-0.5P and Group B’s demand is estimated to be QB=420-1.5P. Marginal Cost is assumed to be $30. Given the information above, determine the most appropriate optimal pricing strategy and...
1.(32 pts. Consider the following equations describing the market for good X Demand: =4- Supply: -p-2...
1.(32 pts. Consider the following equations describing the market for good X Demand: =4- Supply: -p-2 Equilibrium: q-q=9 a. Find the inverse domand and supply equations. (4 pts.) b. Algebraically find the equilibrium price (p) and quantity (q) of good X. (4 pies) c. Carefully and nearly draw the inverse supply and demand curves you found in purta. In constructing your graph, use the following values of : 0.2 and 4 i.e., coordinates (9), (2.__): (4. ): ctc.). Be sure...
D Question 15 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve give...
D Question 15 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer is non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is truef the monopolist practices third degree price discrimination? The price charged to student equals 35 and non-students equals 60 The price charged to...
Problem Set 1 Due Date: Wednesday, January 25,2017 1. Consider the following demand function of an...
Problem Set 1 Due Date: Wednesday, January 25,2017 1. Consider the following demand function of an individual for good 1: where p" p2, ps are the prices of good 12, and 3, respectively, and Y represents the income the individual. Suppose good 1 and 2 are substitutes while good 1 and 3 are complements. (a) Describe in words what B,,B,, B, and B, measure. (b) Can you say anything about the expected signs of p.B.B, and B, in the demand...
3. Demand and supply for a good are given by the following two equations: Demand: q=...
3. Demand and supply for a good are given by the following two equations: Demand: q= 200 – p(1+T) Supply: q = 20 + 2p 9 where and p denote the quantity and price, respectively. The parameter 1 represents the tax rate imposed the per unit price. (a) Solve for the equilibrium price and quantity in terms of the parameter T. (b) Find the equilibrium price and quantity when t= 0 and t= 10%.
1. There are two potential consumers for a public good. Consumer 1 has inverse demand P...
1. There are two potential consumers for a public good. Consumer 1 has inverse demand P 1 = 30 − Q, Consumer 2 has inverse demand P 2 = 60 − 3 Q, where Q is the level of provision of the public good. The marginal cost of providing the public good is 30. What is the optimal level of provision of the public good? 30 0 25 15 2. Production of widgets creates pollution: a negative externality. The marginal...
D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve give...
D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer are non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is true if the monopolist practices third degree price discrimination? Total profit earned equals 2150. Total profit earned equals 2250 Total profnt earned equals...
3. Imagine there exist three consumers, each with their own demand curves for a Public Good....
3. Imagine there exist three consumers, each with their own demand curves for a Public Good. The equations below provide the demand curves for each consumer for this public good where P is the unit price of the public good and Q is the unit value of the public good. Consumer 1: P = 200 – Q Consumer 2: P= 40 – 30 Consumer 3: P = 50 - Q. The total cost (TC) producing the public good is given...
There are only two groups of consumers in a particular market. Let the demand curve of...
There are only two groups of consumers in a particular market. Let the demand curve of consumers in group 1 be given as q = f(p) and the demand curve of consumers in group 2 be given as q g(p), where Q+ and p is the market price of the good. Question: Derive a mathematical expression that shows how the price elasticity of the market demand curve, , is related to the price elasticities of the two groups' demand curves,...
Question 3 of 5 2 Points There are 100 consumers on the market for good Z,...
Question 3 of 5 2 Points There are 100 consumers on the market for good Z, each having the individual demand 9d = 2.2 – 0.02p + 0.005Qd where Qd is the quantity demanded by the whole market (i.e., the market demand). The supply of Z is given by Qs = 200 + 6p. (a) The slope of the market demand curve (i.e., dQd/dp) is ; the maximum price for this market is (b) The market equilibrium quantity Q* =...
1.(32 pts. Consider the following equations describing the market for good X Demand: =4- Supply: -p-2 Equilibrium: q-q=9 a. Find the inverse domand and supply equations. (4 pts.) b. Algebraically find the equilibrium price (p) and quantity (q) of good X. (4 pies) c. Carefully and nearly draw the inverse supply and demand curves you found in purta. In constructing your graph, use the following values of : 0.2 and 4 i.e., coordinates (9), (2.__): (4. ): ctc.). Be sure...
D Question 15 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer is non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is truef the monopolist practices third degree price discrimination? The price charged to student equals 35 and non-students equals 60 The price charged to...
Problem Set 1 Due Date: Wednesday, January 25,2017 1. Consider the following demand function of an individual for good 1: where p" p2, ps are the prices of good 12, and 3, respectively, and Y represents the income the individual. Suppose good 1 and 2 are substitutes while good 1 and 3 are complements. (a) Describe in words what B,,B,, B, and B, measure. (b) Can you say anything about the expected signs of p.B.B, and B, in the demand...
3. Demand and supply for a good are given by the following two equations: Demand: q= 200 – p(1+T) Supply: q = 20 + 2p 9 where and p denote the quantity and price, respectively. The parameter 1 represents the tax rate imposed the per unit price. (a) Solve for the equilibrium price and quantity in terms of the parameter T. (b) Find the equilibrium price and quantity when t= 0 and t= 10%.
D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer are non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is true if the monopolist practices third degree price discrimination? Total profit earned equals 2150. Total profit earned equals 2250 Total profnt earned equals...
3. Imagine there exist three consumers, each with their own demand curves for a Public Good. The equations below provide the demand curves for each consumer for this public good where P is the unit price of the public good and Q is the unit value of the public good. Consumer 1: P = 200 – Q Consumer 2: P= 40 – 30 Consumer 3: P = 50 - Q. The total cost (TC) producing the public good is given...
There are only two groups of consumers in a particular market. Let the demand curve of consumers in group 1 be given as q = f(p) and the demand curve of consumers in group 2 be given as q g(p), where Q+ and p is the market price of the good. Question: Derive a mathematical expression that shows how the price elasticity of the market demand curve, , is related to the price elasticities of the two groups' demand curves,...
Question 3 of 5 2 Points There are 100 consumers on the market for good Z, each having the individual demand 9d = 2.2 – 0.02p + 0.005Qd where Qd is the quantity demanded by the whole market (i.e., the market demand). The supply of Z is given by Qs = 200 + 6p. (a) The slope of the market demand curve (i.e., dQd/dp) is ; the maximum price for this market is (b) The market equilibrium quantity Q* =...
Most questions answered within 3 hours.
-
What are the key benefits and limitations of a relational
DBMS?
asked 1 minute from now -
A medium-sized carrot weighs 64 g and contains 7.0 g of
carbohydrate.
What percent, by mass,...
asked 11 seconds ago -
Please design 3 different and unique brackets consisting of TOP,
FRONT, RIGHT or LEFT views with...
asked 16 minutes ago -
La Niña conditions are forecasted to result in dry conditions in
the spring. You are trying...
asked 24 minutes ago -
The YTM on a 6-month $20 par value zero-coupon bond is 18%, and
the YTM on...
asked 25 minutes ago -
Write In JAVA:
Part 1
The use of computers in education is referred to as
computer-assisted...
asked 32 minutes ago -
Show all of your work and use the half-reaction method
for acidic redox reactions.
1.
H2O2aq+...
asked 33 minutes ago -
The Harry and Belinda Johnson Family Might Have a Career
Change
Harry has started out fine...
asked 40 minutes ago -
Tyler Company acquired all of Jasmine Company’s outstanding
stock on January 1, 2016, for $244,700 in...
asked 42 minutes ago -
In the guanidinium ion, [C(NH2)3] + , what is the best
description of the hybridizations of...
asked 46 minutes ago -
Could you please explain, how this code works?
public void addAfter(int element){
if (this.manyItems == 0){...
asked 57 minutes ago -
Does the complexity of the project dictate the estimating
method?
asked 53 minutes ago