5. There are three supply-side participants (A, B and C) in an electricity market, and their offers are given below. SELL = 0.05P+25P+30 ΠΑ SELL TB SELL =0.065P+45P+75 (A, B and C are the offer prices) πρ =0.06P+22.75P+48 The system demand (PD) is price elastic and given as a function of market price, as follows: PD=90-p In a Cournot competition where the generators maximize their profits, find the Nash equilibrium solution of the above auction.
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- Dashboard for Online Pricing Online the timing and tailoring of prices to specific models of products is the key to successful pricing in online markets. And “Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online.” Assuming a 10 percent decrease in price increases sales by 25 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $.50 per click and boasts a conversion rate of 5 percent (an average of 20 clicks are needed to generate a sale). What price should you charge for the product? What is the optimal markup on cost? The authors assert that price sensitivity is affected by (1) product life cycles, and (2) numbers of competitors. In fact, “when the number of competing sellers doubles, a firm’s elasticity of demand is expected to double (and you should be able to…The demand function for bicycles in Holland has been estimated to be Q = 2,000+ 15Y - 7.5P = where Y is income in thousands of euro, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euro and Y what is: The price elasticity of demand? -1.02 O -7.5 -0.24 -0.50 The income elasticity of demand? 0.20 1.02 1.00 O 0.14 15,000 euro,Calculate the price elasticity of demand for mobiletelephones where the quantity sold decreases from 225 to180 when the price rises from BD50 to BD57.5 3) With the help of a diagram, analyse the impact of entry ofnew suppliers into an industry on the demand and supplycurves. Make sure that your diagram is labelled clearly.
- Use the price-demand equationp+0.001x=45, 0sps45. Find the elasticity of demand whenp%3$25. If the $25 price is decreased by 4%, what is the approximate percentage change in demand? The elasticity of demand whenp%3 25 is (Type an integer or a simplified fraction.) If the price is decreased by 4%, the demand approximately %. (Type an integer or a simplified fraction.) is increases by decreases bySuppose that you own a local chain of 10 grocery stores that sell oranges. (Assume that the grocery stores are all the same in terms of customer composition, products sold, etc.) You are interested in determining whether or not you are maximizing revenue on the oranges you sell. Devise a plan to calculate the arc elasticity of demand for the oranges. What data would you need? How could you get that data? How do you use the raw data to tell you if you’re maximizing revenue?4. There is no demand for a certain make of one-time use camera when the unit price is $ 12. However, when the unit price is $ 8, the quantity demanded is 8000/week. The supplier will not market any cameras if the unit price is $ 2 or lower. At $ 4/camera, however, the manufacturer will make available 5000 cameras/week. Given that both the supply and demand equations are linear: (a) Determine the associated linear demand function (b) Determine the linear supply function. (c) At what price should the camera be sold so that there is neither a surplus nor a shortage?
- Online the timing and tailoring of prices to specific products is the key to successful pricing in online markets. And " Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online." Assuming a 10 percent decrease in price increases sales by 30 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $0.50 per click and boasts a conversation rate of 5 percent ( an average of 20 percent clicks are needed to generate sale), the incremental cost of each sale is $50. What price should you change for the product? What is the markup? B) . The authors assert that price sensitivity is affected by (1) product cycle, and (2) number of competitors. In fact, " When the number of competing sellers doubles, a firm's elasticity of demand is expected to double ( you should be able to verify this…Star wars coffee mugs are traded in a competitive world market with a price of R180 per cup. Unlimited quantities are available for import into South Africa at this price. On average 10 000 kg are traded each month. The elasticity of demand has been estimated at -0.81 and elasticity of supply at 3.51. Derive the demand equation for the star wars coffee mug. . . A. Qd = 12 800 - 45P B. Qd = 15 200 - 35P C. Qd = 18 100 - 45P D. Qd = 20 000 - 50P Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.6. The Valve Corporation, a software entertainment company, recently ran a holiday sale on its popular Steam software program. Using data collected from the sale, it is possible to estimate the demand corresponding to various discounts in the price of the software. Assuming that the original price was $40, the demand for the software can be estimated by the function q= 3,751,000p-2826, where p is the price and q is the demand. Calculate and interpret the elasticity of demand. p dq E = - q dp elasticity of demand interpret the results Which one the following statements in true for situation? (Circle the correct answer.) a) Total revenue increases as price increases. b) Total revenue decreases as price increases. c) Neither is true.
- P = 450 – 4Qp %3D 1 P =Qs + 25 4 Calculate demand elasticity at equilibrium: 1/8 O -1/8 8. -8What might you infer about the price elasticity of demand for diesel fuel in the short run? In the long run?A1). The price, p, that a bookstore charges for a special gift edition of a popular trilogy is related to the demand, q, by the equation 100pq + q? = 5,000,000. Suppose the price is currently set at $40. (a). At what rate is the demand currently changing with respect to this price? (Include units) (b). At what rate is the revenue currently changing with respect to this price? (Hint: use the chain rule). (Include units). (c). Suppose the demand is currently increasing at a rate of 50 copies per month. How fast is the price currently changing per month? (again, assume the price is currently $40).Include units.