Question

1. Let demand be P(Q) = 6 ---Q. What is the price elasticity of demand at Q = 4? 1 a. E = — 4 1 C. b. E =- 2 E = -4 d. E = -2 2. Suppose we have 3 types of households each with private demand for a public good (like flood protection) of P (Q) = 5, P2(Q) = 10 - Q, and P3(Q) = 20 – 2Q. What is the social demand curve for the range Q < 10? Ps(Q) = 30 – 30 b. Ps(Q) = 35 – 3Q a. C. Ps(Q) = 20 – 20 d. Ps(Q) = = 150 – 60 3. A perfect-price-discriminating monopoly's marginal revenue curve a. lies below the demand curve. b. is the demand curve. c. varies for each consumer. d. is the same as a single-price monopolist's marginal revenue curve. 4. Charging a higher price to ship corn than to ship soybean by covered hopper train car to the same destination is an example of a. Perfect price discrimination b. Group price discrimination C. Tiered price discrimination d. Actual cost differences

Answer 1

As per HOMEWORKLIB RULES in case of multiple questions only the first question is to be answered

Kindly ask rest of the questions in a separate post

1.

Correct option: (d) -2

Reason: P = 6 - Q/2

When Q = 4,

P = 6 - (4/2)

P = $4

Also,

P = 6 - Q/2

Or,

Q = 12 - 2P

Now,

dQ/dP = -2

Now, coming to elasticity,

Ed = (dQ/dP) x (P/Q)

Ed = -2 x (4/4)

Ed = -2

Thus, correct option is (d) -2