Calculate and categorize the Point elasticity for the (inverse)demand curve P=24-2Q at p1=14,p2=12,p3=10
The inverse demand curve can be rewritten as
2Q = 24-P
or Q = 12-0.5P
so, dQ/dP = -0.5
Elasticity formula = dQ/dP*P/Q
A) When P=14
Q = 12-0.5*14 = 5
E = -0.5*14/5 = -1.4
B) When P=12
Q = 12-0.5*12 = 6
E = -0.5*12/6 = -1
C) When P = 10
Q = 12-0.5*10 = 7
E = -0.5*10/7 = -0.71
Calculate and categorize the Point elasticity for the (inverse)demand curve P=24-2Q at p1=14,p2=12,p3=10
3. Calculate and categorize the point elasticity for the (inverse) demand curve P = 24 -20 at P=14, P2=12, Pz=10.
24.If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then profit maximization is achieved when the monopoly sets price equal to A) 16. B) 21. C) 25. D) 58. 25. If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then maximum profit A) equals $336. B) equals $882. C) equals $1,218. D) cannot be determined solely from the...
The (inverse) demand curve for the segment of the market with strong demand is P = 200 - 2Q. The demand curve for the segment of the market with weaker demand is 150 - 2Q. Using second degree price discrimination, what price would you charge the segment of the market with strong demand?
Suppose the inverse market demand curve for widgets is given by p = 12 – 2Q, and the market is characterized by Stackelberg duopoly. Both firms have marginal costs of 2 and fixed costs of 0. What is the equilibrium price in the market? Your answer should be rounded to the first decimal place (e.g. 123.4).
1. Let demand be P(Q) = 6 - 2. What is the price elasticity of demand at Q = 4? a. E = C. b. E= 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 P1(Q) = 5, P2(Q) = 10 - Q, and P3(Q) = 20 – 2Q. What is the social demand curve for the range Q < 10? a. Ps(0=...
Consider the inverse demand curve: p 80 2Q. Assume the market price is $10.00. Calculate consumer surplus at the equilibrium market price and quantity. Consumer surplus (CS) is (Enter your response rounded to two decimal places.)
Demand curve: P = 30 – Q Supply curve: P = 2Q a) Calculate the equilibrium quantity and price. b) Draw the curves. c) Suppose that the government set the price at 25 dollars. Calculate the shortage or surplus that is created on the market. W4 exercise Use the demand and supply functions from ‘W3 exercise’ and calculate the consumer surplus and the producer surplus. W5 exercise Suppose that the demand schedule for electric bicycles is as follows: a) Use...
Question #4: Price Elasticity of Demand [14 Points]Suppose that the demand function for crab cakes is equal to 1200−=PQD(a) Using calculus calculate the price elasticity of demand when P = $20. [8 Points] (b) Is demand for crab cakes elastic, unit-elastic, or inelastic? Briefly explain [2 Points] (c) By how much should producers cut the price in order to sell 25% more crab cakes? Question #5: Elasticity [22 Points] Consider the market for an Italian cookbook. Demand for the Italian...
9. A good’s demand is given by P =400-2Q At P=80 the point elasticity is
A company faces an inverse demand curve of p = 17 − 2Q and its cost function is C = 36 + 2Q + 0.5Q2. 1) What Q* maximizes the monopoly’s profit (or minimizes its loss)? 2) At Q* , what is the price and profit? Under what condition should the company shut down?