7. Elasticity and total revenueThe following graph illustrates the weekly demand curve for motorized scooters in Roanoke.Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.Note: You will not be graded on any changes made to this graph.PRICE (Dollars per scooter)32530027525022520017515012510075502500369*1846Demand12 15 18 21 24 27 30 33 36 39QUANTITY (Scooters)Total Revenue? On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $50, $75, $100, $125, $150,$175, and $200 per scooter.TOTAL REVENUE (Dollars)2610243022502070180017101530135011709900 25 50 75 100 125 150 175 200 225 250 275 300 325PRICE (Dollars per scooter)Total Revenue?According to the midpoint method, the price elasticity of demand between points A and B is approximately 0.69Suppose the price of scooters is currently $125 per scooter, shown as point A on the initial graph. Because the demand between points A and B isInelastica $25-per-scooter decrease in price will lead to a decrease in total revenue per week.In general, in order for a price decrease to cause a decrease in total revenue, demand must be Inelastic

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Answered: 7. Elasticity and total revenue The…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Consider the following dataset. Price (X) | Demand (Y) $49 $69 $89 $99 $109 124 95 71 45 18 Interpret the slope and predict the demand if the price is set at $54.
Eid-ul-Adha is right around the corner. Every year End largely affects the commodity market. Suppose, Government has imposed a maximum selling price of per kg onion at 50 taka, whereas the market price was 70 taka per kg before the announcement a. explain the effects of this ceiling price on the demand and supply of the onion market. In your graph , show the effects of the price changes on quantity demanded and quantity supplied. Does it create excess supply or excess demand? What will happen to the market price? b. In the above situation, who (buyers or sellers) is going to get the benefit from such policy? Explain it in your own words (due: use a graph where a Price Ceiling is binding)
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Let x be the average number of employees in a group health insurance plan, and let y be the average administrative cost as a percentage of claims. x 3 7 15 33 72 y 40 35 30 26 17 (a) Make a scatter diagram of the data and visualize the line you think best fits the data. A scatter diagram has a horizontal axis labeled "x (average number of employees)" with values from 3 to 72 and a vertical axis labeled "y (average cost as percentage)" with values from 17 to 40. The scatter diagram has 5 points. A pattern goes up and right from (13, 17) to (72, 40). A scatter diagram has a horizontal axis labeled "x (average number of employees)" with values from 3 to 72 and a vertical axis labeled "y (average cost as percentage)" with values from 17 to 40. The scatter diagram has 5 points. A pattern goes down and right from (3, 40) to (72, 17). A scatter diagram has a horizontal axis labeled "x (average number of employees)" with values from 3 to 72 and a vertical axis labeled…
Describe the patterns in quantity sold and own and rival prices during this time period using basic descriptive statistics. Graphs are welcome as well. Take the logs of the variables, and estimate the demand function. Interpret the R-square. Interpret the coefficients for logP and logPsub Interpret the p-values associated with each independent variable Are consumers price sensitive? Why or why not? (be as precise as you can – you have estimates!). Does this price sensitivity make sense given the good we are examining? How sensitive are our consumers to changes in the rival good’s price? Explain in detail. Suppose we decide to charge a per ounce price of $2, while at the same time our rival charges a price of $2.15. All else equal, what would you expect sales to be? How confident are you in your forecast? Suppose we are charging a price of $2 and our current marginal cost is $1.50 Are we maximizing profits at this price? If not, should we raise or lower price? Why?
A tour guide charges a price of $600 per person for a jungle tour and typically 8 persons sign up for the tour. One time the guide offers the jungle tour at a discounted price of $525 per person and finds that 11 persons sign up for the tour. Assuming the demand trend is linear and that for each price drop of $25, one more person is interested in the tour, what size of group a will produce the largest revenue for the tour guide? I
As Sales Manager for ISeeYou Productions, you are planning to review the prices you charge clients for television advertisement development. You currently charge each client a development fee of $9,000. With this pricing structure, ISeeYou is able to sign 24 contracts per month. This is down from 56 contracts, which was the figure last year when your company charged each client only $5,000. (a) Construct a linear function that yields the development fee p that ISeeYou should charge in order to sign g contracts per month. p(q) = (b) Find the total revenue R ISeeYou obtains by signing q contracts. R(g) = (c) The costs to ISeeYou Productions are estimated as follows: Fixed costs: $80,000 per month 1,000g dollars (when g contracts are signed) Variable costs: Express ISeeYou Productions' monthly cost as a function the number q of contracts. C(a) = (d) Express ISeeYou Productions' monthly profit as a function of the number q of contracts. P(g) = (e) How many contracts could ISeeYou sign to…
1) A book club has a membership fee of $25. Each book purchased costs $3. Find a rule for the linear function that describes the total cost of buying books as a member of the club, and find the total cost of buying 12 books. Explain your answer!
A local restaurant has a weekly fixed cost of $1507 per week, and unit costs of $1.75 per hamburger. They sell the hamburger for $5.99 a. Sketch the graph of the following cost and revenue functions. Shade and label the area of profit and loss

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