lon. On the day that both franchises opened for business, each owner was observed changing the price of gasoline advertise marquee more than 10 times; the owner of Hull lowered its price to slightly undercut Inverted V's price, and the owner of Inve ered its advertised price to beat Hull's price. Since then, prices appear to have stabilized. Under current conditions, how man lons of gasoline are sold in the market, and at what price? tructions: Enter your response rounded to the nearest two decimal places. lons sold: ce: $ w would prices differ if Hull had service attendants available to fill consumers' tanks but Inverted V was only a self-service sta O Price will not change O Price will go down O Price will go up

lon. On the day that both franchises opened for business, each owner was observed changing the price of gasoline advertise marquee more than 10 times; the owner of Hull lowered its price to slightly undercut Inverted V's price, and the owner of Inve ered its advertised price to beat Hull's price. Since then, prices appear to have stabilized. Under current conditions, how man lons of gasoline are sold in the market, and at what price? tructions: Enter your response rounded to the nearest two decimal places. lons sold: ce: $ w would prices differ if Hull had service attendants available to fill consumers' tanks but Inverted V was only a self-service sta O Price will not change O Price will go down O Price will go up

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Firms X and firm Y are maximizing profits. At their respective profit-maximizing price, Firm X's own-price elasticity is -2 and Firm Y's own-price elasticity is -3. Which statement is correct? O The share of markup in the optimal price (Lerner index) for firm X is equal to 50% O Firm X is a price taker O Everything else held constant, if firm Y increases its price it will lead to an increase in its revenue O Firm X's consumers are more price sensitive than firm Y's consumers O Firm Y can charge a higher markup than firm X
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Which of the following shift the quinoa supply curve to the right? a. The world-wide outbreak of a deadly virus which makes the transportation of quinoa more difficult. O b. Consumers become more aware of the health benefits of Quinoa. O c. Major quinoa farmers in the world form a cartel. O d. Quinoa farms adopt a better production technology and reduces its marginal cost.
V7 Describe what price discrimination means, and discuss 1st, 2nd,and 3rddegree price discrimination. In your discussion, include under what conditions firms are able to discriminate prices for each type of price discrimination and what may hinder these practices. Also mention which degree is “best” for the firms and how they affect consumers. Also mention one example for each type of price discrimination
You stop by a crafts fair and you notice consumershaggling with vendors over prices. What does thistell you about the competitiveness of this market?Suppose you plan to go to a farmers’ market next.Do you expect to find more or less haggling at thismarket than you did at the crafts fair? Why?
You are given this demand schedule for new boats. Which of the following demand curves accurately represents the demand schedule and has proper formatting? The demand schedule for new boats Price ($) Quantity Demanded $500 5500 $1000 5000 $1500 4500 $2000 3500 $2500 3000 $3000 2000 $3500 1000 $4000 150 O 3100 10 NEW 3000 1000 THE None of the demand curves accurately represent the data in the schedule 9000 1000 3000 2000 . 1000 New Boats 1000 4000 New Boats Demanded New Boats 200 6000 7000
. Do you consider yourself a member of any brand communities (formal or informal)? If so, what effect do these groups have on your purchasing behavior?
Providing in-aisle checkout service is a way for retailers to combat what omni-channel shopping behavior? O in-store shopping O webrooming O showrooming O sequential shopping O single-channel shopping
Critical Thinking Cost-plus pricing used to be the mostcommon approach to setting prices in the marketplace. Ithas the advantages of being simple and ensuring that aprofit margin is achieved on every unit sold. However, ashighlighted in the chapter, there are alternative approaches to setting prices.Do you think that cost-plus pricing is still applicablein today’s world, or are there more suitable approachesto setting prices? For what type of products or industries do you think cost-plus pricing can still be used effectively?
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22. Suppose the firm in the figure below sets a uniform price for its product. Please show the steps. a. If the firm chooses to set a uniform price for its product, then the profit-maximizing price is $________ and ________ units will be sold. Under this uniform pricing policy, the maximum possible profit is $________. b. The maximum profit the firm could earn if the firm sells 2,000 units and is able to charge the demand price for every one of the 2,000 units it sells is $ ________. c. For the additional number of units sold by expanding output to 2,000 units (from the output level in part a), the consumer surplus that could be captured if it were possible to charge the demand price on every one of those units would amount to $________.