d. Holding the price of bagels again at $1, what happens to the predicted number of bagels sold per day if the price of coffee increases from $2.5 to $5 per cup. Is this a change in demand or a change in quantity demanded? = -20P + 10Ps - 20Pc +101 Initial Quantity: Terminal Quantity -20p+10P-20(2.5)+10(1) -20p+10P-20(5)+10(1) P Change in Quantity Demanded e. In the coordinate axes below, illustrate the changes that occurred above in parts c and d above. (Note, your graph need not be precise) Font
d. Holding the price of bagels again at $1, what happens to the predicted number of bagels sold per day if the price of coffee increases from $2.5 to $5 per cup. Is this a change in demand or a change in quantity demanded? = -20P + 10Ps - 20Pc +101 Initial Quantity: Terminal Quantity -20p+10P-20(2.5)+10(1) -20p+10P-20(5)+10(1) P Change in Quantity Demanded e. In the coordinate axes below, illustrate the changes that occurred above in parts c and d above. (Note, your graph need not be precise) Font
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
please answer D and E

Transcribed Image Text:d. Holding the price of bagels again at $1, what happens to the predicted number of bagels sold
per day if the price of coffee increases from $2.5 to $5 per cup. Is this a change in demand or a
change in quantity demanded?
=
- -20P + 10P§ - 20Pc +101
Initial Quantity:
-20p+10P-20(2.5)+10(1)
Terminal Quantity -20p+10P-20(5)+10(1)
Change in Quantity Demanded
e. In the coordinate axes below, illustrate the changes that occurred above in parts c and d above.
(Note, your graph need not be precise)
Font
P
f Supege 41.
1 and that th
Abon moninklo valo

Transcribed Image Text:1. The Alpine Bagel Co. is evaluating pricing for Bagels in it's outlet in the student commons.
Their in-house consulting team estimated that the daily demand for Bagels in the area to be the
following
Q = -20P + 10Ps - 20Pc +101
Where P = the price of bagels, P, = the price of scones (each), P. = the price of coffee (per cup),
and I Income (average annual disposable income, for students in thousands of dollars)
Font
b. Suppose that the price of scones = $3, coffee costs $2.5 per cup, and average annual disposable
income for students is $15,000. Calculate the demand curve (NOTE- be certain to enter
income appropriately - how is income denominated?)
c. What happens to the predicted number of bagels sold per day if the price of bagels is increased
from $1 to $2? Is this a change in demand or a change in quantity demanded?
Initial Quantity:
-20(1)+10Ps-20Pc+101
Terminal Quantity -20(2)+10Ps-20Pc+101
Change in Quantity Demanded
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