• P= price per tutoring session in ECON101. • P=price per tutoring session in Mathematics, which is 46.5. • Pe=price per tutoring session in Kazakh Literature, which is 27. I= income of ECON101 students, which is 388. • P= average opportunity cost of senior Economics students for giving private tutoring sessions in ECON101, which is 34. The equations that represent the demand and supply schedules respectively are: Q=-0.8P-Pm+2P +0.51 Q=1.91 P P + 30 Note: in all your calculations in this question, use a precision for your decimals of up to four decimal digits. When writing your answers, again, use up to four decimal digits if needed. The equilibrium price is: $ The equilibrium quantity is: The point price elasticity of demand at the market equilibrium, in absolute value, is: The point price elasticity of supply at the market equilibrium, is: Determine the cross-price elasticity of tutoring sessions for ECON101 with respect to the price of tutoring sessions for mathematics: What type of goods they are? 0 Determine the cross-price elasticity of tutoring sessions for ECON101 with respect to the price of tutoring sessions for Kazakh literature: What type of goods they are? Senior students from the Economics major found out last week that Prof. Alejandro will have an extremely difficult exam on his 400-level class (true story) during this week. Therefore, their average cost of opportunity of imparting ECON101 tutoring sessions will double. Therefore, the new equilibrium price is:
• P= price per tutoring session in ECON101. • P=price per tutoring session in Mathematics, which is 46.5. • Pe=price per tutoring session in Kazakh Literature, which is 27. I= income of ECON101 students, which is 388. • P= average opportunity cost of senior Economics students for giving private tutoring sessions in ECON101, which is 34. The equations that represent the demand and supply schedules respectively are: Q=-0.8P-Pm+2P +0.51 Q=1.91 P P + 30 Note: in all your calculations in this question, use a precision for your decimals of up to four decimal digits. When writing your answers, again, use up to four decimal digits if needed. The equilibrium price is: $ The equilibrium quantity is: The point price elasticity of demand at the market equilibrium, in absolute value, is: The point price elasticity of supply at the market equilibrium, is: Determine the cross-price elasticity of tutoring sessions for ECON101 with respect to the price of tutoring sessions for mathematics: What type of goods they are? 0 Determine the cross-price elasticity of tutoring sessions for ECON101 with respect to the price of tutoring sessions for Kazakh literature: What type of goods they are? Senior students from the Economics major found out last week that Prof. Alejandro will have an extremely difficult exam on his 400-level class (true story) during this week. Therefore, their average cost of opportunity of imparting ECON101 tutoring sessions will double. Therefore, the new equilibrium price is:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:• P= price per tutoring session in ECON101.
• P = price per tutoring session in Mathematics, which is 46.5.
• P = price per tutoring session in Kazakh Literature, which is 27.
./= income of ECON101 students, which is 388.
• P= average opportunity cost of senior Economics students for giving private tutoring sessions in ECON101, which
is 34.
The equations that represent the demand and supply schedules respectively are:
Q=-0.8 P- Pm+2P+0.51
Q=1.91 PP. + 30
Note: in all your calculations in this question, use a precision for your decimals of up to four decimal digits. When writing
your answers, again, use up to four decimal digits if needed.
The equilibrium price is:
$
The equilibrium quantity is:
The point price elasticity of demand at the market equilibrium, in absolute value, is:
The point price elasticity of supply at the market equilibrium, is:
Determine the cross-price elasticity of tutoring sessions for ECON101 with respect to the price of tutoring sessions for
mathematics:
What type of goods they are?
0
Determine the cross-price elasticity of tutoring sessions for ECON101 with respect to the price of tutoring sessions for
Kazakh literature:
What type of goods they are?
Senior students from the Economics major found out last week that Prof. Alejandro will have an extremely difficult exam
on his 400-level class (true story) during this week. Therefore, their average cost of opportunity of imparting ECON101
tutoring sessions will double.
Therefore, the new equilibrium price is:
$
and the new equilibrium quantity is
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education