Suppose the average student's demand for Holy Cross football tickets is as follows:$20 $14 s10 $7 $51 2PriceQuantity3 4 5a. If Holy Cross is a profit maximizer and it can only sell single game tickets, what price will HolyCross charge, how many tickets will the average student buy, and how much profit will thecollege make per student (assuming MC = 0)?b. If Holy Cross is a profit maximizer but instead sells season-tickets for all 5 home games, whatprice will the college charge and how much profit will the college make per student?c. Give at least 2 other reasons besides higher ticket revenue why Holy Cross would prefer to sellseason tickets rather than individual game tickets.2.

Price Quantity TR MR $20 1 20 20 $14 2 28 8 $10 3 30 2 $7 4 28 -2 $5 5 25 -3 A) The…

Answered: Price $20 $14 s10 S7 $5 Quantity 1 2 3…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to the graph shown. Demand is unit elastic when revenue is: Revenue in thousands of dollars 99876SMO 10 A B 246 Multiple Choice $8,000 $10,000. D E 10 8 Quantity F G 12 14 16 Refer to the graph shown. Demand is unit elastic when revenue is: Revenue in 2 4 6 Multiple Choice $8,000 $10,000 D 8 10 Quantity G S 12 14 16 Ć
Suppose a college has an enrollment of !0,000 students and all the students live in dorms and have a cafeteria plan. Tuition is $20,000 and Room and Board is $10,000a. Suppose the price elasticity of demand is 2 and the school raises Tuition by 5%. Calculate the effect on Enrollment andb. Calculate the effect on the college’s revenue. Why is the effect on revenue ‘magnified”?c. Where did the college go wrong? What should it do?
Q.suppose the quantity of stocks purchase by jones family is110 pounds per year when price is $2.10 per pound and90pound per year when price is $3.90 per pounds.calculate the coefficient of elasticity for jones family.
You are given this demand schedule for new boats. Which of the following demand curves accurately represents the demand schedule and has proper formatting? The demand schedule for new boats Price ($) 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
250 225 Revenue Lost 200 175 150 Revenue Gained 125 Demand 100 75 50 25 3 4 7 8 9. 10 QUANTITY (Fire engines) Gilberto increase production from 7 to 8 fire engines because the dominates in this scenario. True or False: If Gilberto's Fire Engines were a competitive firm instead and $100,000 were the market price for an engine, decreasing its price from $100,000 to $50,000 would result in the same change in the production quantity and, thus, total revenue. O True O False acer Σ 2. 1. PRICE (Thousands of dollars per fire engine)
4. John Stain estimates that the demand curve for his PaneMaster insulated windows is given by 350-2P Q Currently, John is charging $150 per window, including installation. John is considering a sale. Find the price elasticity of demand for PaneMaster Windows and comment on the advisability of a sale. = a) EQp = -0.67 so the consequences of a sale cannot be determined b) Eqp = -0.67, so a sale would increase profits c) EQp = -6.00, so the consequences of a sale cannot be determined d) EQp = -6.00, so a sale would increase profits
3. Answer the following questions about the figure below: eliqu Price $20 $18 $16 $14 $12 $10 $8. $6 $4 $2 0 MR D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Quantity MC a. What is the profit-maximizing level of output? iliw tailogonom off 010 +115d0-(899 moitiba T wilmM) loods.P b. What price with the monopolist charge to maximize profits?
QUESTION 3 Consider the following graph: Price and cost (per necklace) 260.00 240.00 220.00- 200.00 180.00- 160.00- 140.00 120.00- 100.00 80.00- 60.00- 40.00 20.00- 0.00 - 0 2 4 -O MC What is the profit maximizing quantity? D ATC MR 6 8 10 12 14 16 18 20 22 24 26 Quantity (diamond necklaces)
A car show sells 100 tickets for $10 each. The car show wants to increase the price to increase the revenues. But, They have notice that the ticket sales decrease by 5 tickets each time the price increases by $5. What is the revenue equation? and What is the maximum revenue?
FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of reservations on a typical Sunday dropped from 60 to 55. Which statement is correct? O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price O The total costs faced of FoisPas on a typical Sunday must have increased for sure O The price increase led to a decrease in total revenues as demand was elastic at the initial price O FoisPas faces a horizontal demand curve O The price increase had a positive impact on total revenue as demand was inelastic at the initial price
Suppose the ISP is considering decreasing the price it charges by $20. Because of the price effect, total revenue will fall by The graph below depicts the monthly demand facing the only Internet service provider (ISP) that serves customers in a small town. Currently, the ISP charges a price of $110 per month and serves 8 thousand customers. Type here to search O Part 2 Price 100 150 140 130 120 100 10 Internet Service Number of Customers in 1,000 4 Suppose the ISP is considering decreasing the price it charges by $20. Because of the price effect, total revenue will fall by $ thousand. Suppose the ISP is considering decreasing the price it charges by $20. Because of the output effect, total revenue will rise by S thousand.
23. The smaller the coefficient of price elasticity of demand for a product, the: A. smaller the resulting price change for an increase in supply. B. more rapid the rate at which the marginal utility of that product diminishes. C. less competitive will be the industry supplying that product. D. smaller the resulting quantity change for a decrease in supply.

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