3. A local firm produces three types of pizza, for delivery to homes in the area. The owners have completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week). Price Pizza A (Qd) | Pizza B (Qd) Pizza C (Qd) 12 800 100 11 840 200 10 880 400 300
3. A local firm produces three types of pizza, for delivery to homes in the area. The owners have completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week). Price Pizza A (Qd) | Pizza B (Qd) Pizza C (Qd) 12 800 100 11 840 200 10 880 400 300
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![3. A local firm produces three types of pizza, for delivery to homes in the area. The
owners have completed research, to discover the demand curves for each of the
three pizzas. The schedules are shown below: (Quantities are per week).
Price Pizza A (Qd) Pizza B (Qd) Pizza C (Qd)
12
800
100
11
840
200
10
880
400
300
9.
920
800
400
8
960
1200
500
1000
1600
600
1040
2000
700
1080
2400
800
Plot the three demand curves, on one graph.
a) Calculate the Market demand for Pizza.
b) Calculate Price Elasticity of Demand for all three pizzas over the price range
£9 to £10.
c) For pizza C only, what price must be charged if the firm wishes to maximize
its sales revenue?
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcea624b3-275f-48d2-9065-571e814bad43%2Fdc334354-c50a-4055-833b-37d3cd662e94%2F3mdgmte_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. A local firm produces three types of pizza, for delivery to homes in the area. The
owners have completed research, to discover the demand curves for each of the
three pizzas. The schedules are shown below: (Quantities are per week).
Price Pizza A (Qd) Pizza B (Qd) Pizza C (Qd)
12
800
100
11
840
200
10
880
400
300
9.
920
800
400
8
960
1200
500
1000
1600
600
1040
2000
700
1080
2400
800
Plot the three demand curves, on one graph.
a) Calculate the Market demand for Pizza.
b) Calculate Price Elasticity of Demand for all three pizzas over the price range
£9 to £10.
c) For pizza C only, what price must be charged if the firm wishes to maximize
its sales revenue?
II
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