** PLEASE LOOK AT BOTH IMAGES , THEY COMPLEMENT EACHOTHER ** The demand and supply for bicycles is given by: Qd = 1000-10P and supply is: Q² = 2P - 20 Now go back to original demand and supply. Suppose a price floor P=$90 is imposed. What is theConsumer Surplus and deadweight loss (DWL) after the price floor? (Hint: please draw a graphhere)a. CS=$5500; DWL-120b. CS=$500; DWL-$240c. CS=$820; DWL-$750d. CS=$500; DWL-$750e. None of the above

The consumer surplus is the area below the demand curve and above the market price. The less price…

Business

Economics

** PLEASE LOOK AT BOTH IMAGES , THEY COMPLEMENT EACHOTHER **

PLEASE LOOK AT BOTH IMAGES , THEY COMPLEMENT EACHOTHER

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Nile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B(sales per week) (sales per week) Volume of sales beforethe 10% discount 1.55 million 1.50 million Volume of sales afterthe 10% discount 1.65 million 1.70 million A. Using the midpoint method, calculate the price elasticities of demand for group A and group B. B. Explain how the discount will affect total revenue from each group. C. Suppose Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?
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Which is true of the graphs?
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You have been asked to analyze what will happen to the New England market for electricity if the Winter 2022-23 (December 2022 through February 2023) results in much colder temperatures than Winter 2021-22 (December 2021 through February 2022), causing all residential customers to scramble for more electricity than they would typically need to heat their homes. Using your graph from Question 2, analyze the impact of this change in consumer desire for more electricity. Clearly show any shifts in demand and/or supply curve(s) that came about because of this exit. Label any shifted curves as D2 and/or S2. Clearly show the new market equilibrium. Label the new equilibrium price as P2 and equilibrium quantity transacted as Q2
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