Consider the linear demand curve for Maize with the demand function Qd=578.66-73.17P, Given the elasticity of the linear demand function of Maize Qd=A-BP at price P is Ed=-B(P/Q), where Q the quantity demanded of Maize. At what price will total expenditure on Maize be largest?

Consider the linear demand curve for Maize with the demand function Qd=578.66-73.17P, Given the elasticity of the linear demand function of Maize Qd=A-BP at price P is Ed=-B(P/Q), where Q the quantity demanded of Maize. At what price will total expenditure on Maize be largest?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Question 1:
Consider the linear demand curve for Maize with the demand function Qd=578.66-73.17P, Given the elasticity of the linear demand function of Maize Qd=A-BP at price P is Ed=-B(P/Q), where Q the quantity demanded of Maize. At what price will total expenditure on Maize be largest?
Question 2:
Suppose you hire a machine to work on your field for up to six hours. The total cost of the work is C(H)=110H+40H2 and the marginal cost is MC(H)=110+80H and the MB(H)=654-80H. What will you choose to maximize your utility?

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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