not use ai please k(b) Show that the point elasticity of the demand curve Q = 1, where k is a positiveconstant and n is an integer, is independent of the price p.(c) A producer has the possibility of discriminating between the domestic and foreign marketfor a certain product with the following demand functions:QD=22-0.1pp andQF = 45 -0.3pFwhere, PD, QD- price and demand in the domestic market andPF, QF price and demand in the foreign market.The total cost function is C = 1500 + 10Q where, Q = (QD + QF).(i) What prices should the producer charge in order to maximize his total profit?(ii) What is the maximum total profit the producer can get?

(c) Profit Maximization for the ProducerGiven the demand functions for the domestic and foreign…

Answered: k (b) Show that the point elasticity of…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 23SQ: If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly...

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Similar questions

The price elasticity of demand for air travel differs radically from first-class (1.3) to unrestricted coach (1.4) to restricted discount coach (1.9). What do these elasticities mean for optimal prices (fares) on a cross-country trip with incremental variable costs (marginal costs) equal to $120?
(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?
If bus travel is an inferior good, its income elasticity of demand is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.
The demand function for Good X is Qd(p) = 1/2(p + 1)^2.(a) Find the price elasticity of demand using the differential version of the formula andexpress the elasticity in terms of p only.(b) Based on the price elasticity of demand you find in (a), specify the values of p inwhich the demand for Good X is, respectively, elastic, unit elastic, and inelastic.
Worldwide annual sales on smartphones over a two year period were approximately q=-4p+3,020 million phones at a selling price of $p per phone. (a)obtain a formula for the price elasticity of demanding e. E=_____ (b) in one of the years the actual selling price was $305 per phone. What was the corresponding price elasticity of demand? E=_____ What would’ve been the resulting annual Revenue? $_____billion
Q19. If the demand function is P= 4-5x? For what value of x the elasticity of demand will be Unity 2 (a) 15/2 (b) Jis V15 (c) V15 (d) None
Suppose that the price per unit p as a function of the demanda is p = 478.8 -0.9x. (a) Calculate the price elasticity of demand when x = 132. n = -2.44, therefore the demand is elastic (b) Calculate the price elasticity of demand when x = 425. n = -0.202 therefore the demand is inelastic (c) Find the demand that gives unit elasticity. x = 266.0 ✓
Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,090 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $315 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going ---Select--- O by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $ What would have been the resulting annual revenue? (Round your answer to two decimal places.) $ billion
Suppose the demand for selling a Nintendo Switch console at a price p is modeled by the function ri8, D(p) = V450 -p for 0
Worldwide annual sales of smartphones over a two year period were approximately g = -6p + 3,060 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $355 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going ---Select-- v by about |% per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $ What would have been the resulting annual revenue? (Round your answer to two decimal places.) 2$ billion
Investigating the demand for textile in a country X, a researcher observed that the demand for textiles tend to rise by 1.5 per cent with one per cent decrease in the prices of textiles; with the rise in one per cent of per capita GDP, the demand for textiles rise by 0.45 per cent and when food prices increased by one per cent, the demand for textiles contracts by 0.93 per cent. (a) Identify the type of demand elasticities in this case and define them. (b) Which type of elasticity the textile mills should consider significant for business development? (c) How much rise in sales is expected during a festival season by offering 20 per cent discount by textile mills showrooms?
We want to "estimate" the supply and demand functions for good X. These functions depend on Px, the price of good X and, Py, the price of an alternative good Y. The collected market data are: Px=6.4, Py = 50, Qx = 23, Its own-price elasticity of supply is 0.2, cross-price elasticity of supply is 0.1. Its own-price elasticity of demand is -0.5, cross-price elasticity of demand is 1.5. Assuming that the supply and demand are linear functions with respect to the two goods, use the aforementioned information to "recover" the two functions. (You are asked to "estimate" 6 parameters.) Verify that your "estimated" functions are consistent with the data on market prices and quantity.

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