7. (Figure 10.5) Suppose that a firm offers customers either (1) the ability to buy any quantity they desire for $24 per unit or (2) a price of $18 per unit for 15 or more than under the $24-per-unit pricing scheme, so the plan to charge these types of consumers a price of units. Consumer surplus under the quantity discount is $24 per unit is_____ compatible. Price (S) 40- 30- 24 20- 18- 10- 0 6 8 10 12 14 16 18 20 22 Quantity 11 15 $64 more; incentive $32 less; not incentive $53 less; incentive O $41 more; not incentive

7. (Figure 10.5) Suppose that a firm offers customers either (1) the ability to buy any quantity they desire for $24 per unit or (2) a price of $18 per unit for 15 or more than under the $24-per-unit pricing scheme, so the plan to charge these types of consumers a price of units. Consumer surplus under the quantity discount is $24 per unit is_____ compatible. Price (S) 40- 30- 24 20- 18- 10- 0 6 8 10 12 14 16 18 20 22 Quantity 11 15 $64 more; incentive $32 less; not incentive $53 less; incentive O $41 more; not incentive

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

7. Notepads and pens can be considered to be complements. Woodchips are an input to notepads, and plastic is an input to pens. Assume markets for notepads, pens, woodchips and plastic, are all perfectly competitive. Suppose that the equilibrium price of notepads increases, and the equilibrium price of pens decrease. Which of the following could explain these changes? a) A decrease in the supply of plastic b) An increase in the demand for wood chips c) An increase in the demand for plastic d) An increase in the supply of plastic e) Either (b) or (d)
5
19...
8.
Price 0 52 * S" Quantity Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and 52 (point E). If the technology to produce motorcycles improves and the number of buyers increases, how will the equilibrium point change? O The equilibrium point will move from E to B. O The equilibrium point will move from E to C. The equilibrium point will move from E to A. The equilibrium point will remain at E.
18. Just give the letter answer please!!! Refer to the board. At the equilibrium price, the consumer's surplus would be • a) $o b) $ 8 • c) $ 12 • d) $16
8. Consumer and Producer Surplus Suppose Charles is the only seller in the market for bottled water and Yakov is the only buyer. The following lists show the value Yakov places on a bottle of water and the cost Charles incurs to produce each bottle of water: Yakov's Value Value of first bottle: $7 Value of second bottle: $5 Value of third bottle: $3 Value of fourth bottle: $1 Charles's Costs Cost of first bottle: $1 Cost of second bottle: $3 Cost of third bottle: $5 Cost of fourth bottle: $7 The following table shows their respective supply and demand schedules: Price Quantity Demanded Quantity Supplied $1 or less 4 о $1 to $3 3 1 $3 to $5 2 2 $5 to $7 1 3 More than $7 0 4 Use Charles's supply schedule and Yakov's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $4, and $6. Enter these values in the following table. Price Quantity Demanded Quantity Supplied 2 4 A price of brings supply and demand into equilibrium. At the equilibrium price, consumer…
2A. Refer to Figure 8-25. What are the equilibrium price and equilibrium quantity in this market? 2B. Refer to Figure 8-25. How much is producer surplus at the market equilibrium? 2C. Refer to Figure 8-25. How much is total surplus at the market equilibrium? Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.
8. When a package of 4 units is sold for a total price of 20 to a buyer of type 1 , the consumer surplus to that buyer from buying this package is________________. a ) 20 b ) 36 c ) 24 d ) 42 e ) 12 9. When at most one package of 4 units is available for a total price of 20 , the maximum price that a buyer of type 1 would pay for a package of 12 units is_____________. a ) 84 b ) 96 c ) 120 d ) 114 e ) 56
Ch7 Practice Sheet 7 1) When the quantities we are dealing with are relatively large, we can identify total consumer surplus on a graph as the a) area above the demand curve and below the price. b) area above the demand curve and above the price. c) area below the demand curve and below the price. d) area below the demand curve and above the price. 2) As the price of a good increases, consumer surplus a) increases. b) decreases. c) stays the same. d) may increase, decrease, or stay the same. 3) As the price in a market falls, a) consumer surplus decreases because some consumers leave the market, reducing consumer surplus. b) consumer surplus decreases because the consumers who remain in the market receive a lower consumer surplus. c) consumer surplus increases because consumers who would have bought the good at the higher price earn more consumer surplus, and new consumers enter the market who also earn consumer surplus. d) consumer surplus…
4. (5 points) Price 110- 100- 90 80- 70 60 50 40 30 20- 10 0. MR MC=AC Quantity 00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Based on the above graph (which summarizes the demand, marginal revenue, and relevant costs for your product), determine your firm's optimal price and output and profit for each of the following scenarios: (a) You engage in two-part pricing. (b) You engage in block pricing. 5. (5 points) Assume a case of price discrimination where a movie theater owner charges $16 from members of the public and $10 from students. Assume that at these prices, 200 members of the public and 300 students purchased tickets. The capacity of the theater is 500 and there are no additional people who might want to go the movie theater. $16 is the maximum price the public are willing to pay for the tickets, and $10 is the maximum price students are willing to pay for the tickets. Assume that the government made such price discrimination illegal (currently that is not the case) and therefore…
1