In a situation with 10 identical consumers, the totaldemand function...I) Will not have any kinks.II) Will have a choke price that is 10x the individualchoke price.Select one:a. Statement II is true but statement I is false.b. Both statements are false.C. Statement I is true but statement II is false.d. Both statements are true.Clearmy choice

In economics, the demand function is a mathematical function that describes the quantity of a good…

Answered: In a situation with 10 identical…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Given the following information Price of burger(Pb)=P50 Price of spaghetti (Ps)= P75 MU of burger(MUb)=180 utils MU of spaghetti(MUs)= 225 utils Required: A. Compute for the consumers equilibrium B. What is the decision of the consumers ? Will he buy burger or spaghetti ? Justify your answr.
If Beluga caviar has an income elasticity of demand which is > 0 and Ramen noodles have an income elasticity of < 0, it means that Multiple Choice The two goods are complements Beluga caviar is a normal good and Ramen noodles are an inferior good Beluga caviar has fewer substitutes than Ramen noodles Beluga caviar is an inferior good and Ramen noodles are a normal good
Choice Matrix: Greater than 0 Less than 0 A The price elasticity of supply. B The cross-price elasticity of demand for a pair of substitutes. C The income elasticity of a normal good. D The cross-price elasticity of demand for a pair of complements.
16.Suppose the market for a good is composed of 1,000 identical consumers. The market's demand curve is given by QM = 150,000 – 25P. What is the equation for an individual consumer's demand curve? A) Q = 150,000,000 – 25,000P B) Q = 6,000,000 – 40P C) Q = 6- 4P D) Q = 150 –0.025 17.There are 100 consumers in the market for good X. each with a demand curve given
14)Why does quantity supplied go up as price goes up? * a)For a given time period, the marginal utility gained by consuming equal successive units of a good will decline as the amount consumed increases b)Because as price rises, producer profit rises, which induces producers to supply a larger quantitiy. c)Because people substitute lower-priced goods for higher-priced goods as price rises. d)Both (a) and (b) above
8. Substitutes, complements, or unrelated? You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin pops, flopsicles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin pops decreases by 10%, the quantity of flopsicles sold decreases by 9% and the quantity of kipples sold increases by 9%. Your job is to use the cross-price elasticity between penguin pops and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following…
2) Suppose that there are two types of consumers. "Type 1" consists of 10 identical consumers who each have the following individual demand curve: P=40-2Q. "Type 2" consists of 50 identical consumers who each have the following individual demand curve: P = 73 - 5Qd². a. Compute the market demand curve, where P is a function of Q, where Q- Qar+Qaz. b. Suppose the supply of this good is perfectly inelastic at a quantity of Q. = 30. Compute the market equilibrium price of this good.
Answer correctly. I will rate accordingly.
1.(a) Derive own-price elasticity of demand (eii), income elasticity of demand (hi) and cross-price elasticity of demand (eij) for the Cobb-Douglas Utility Function. (b) With respect to Cobb Douglas preferences, what happens to the demand for each of two products (x and y) when the price of product y increases, as a result of: (i) the substitution effect; (ii) the income effect; and, (iii) the overall price effect?
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When your bumper stickers were priced at $6, you sold 35 in one month. This month, you priced them at $8, and you sold 30. a. Find the corresponding equation for the demand q in terms of the unit price p in dollars. b. Give the corresponding monthly revenue as a function of unit price Pin dollars. C.. What should you price the bumper stickers at in order to earn the maximum monthly revenue?

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