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PRICE (Dollars per medium truck) 200 180 160 140 120 100 80 60 40 20 Demand 01 2 3 4 5 6 7 8 QUANTITY (Hundreds of medium trucks) Supply 9 10

PRICE (Dollars per medium truck) 200 180 160 140 120 100 80 60 40 20 Demand 01 2 3 4 5 6 7 8 QUANTITY (Hundreds of medium trucks) Supply 9 10

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that YouYeet is one of over a dozen competitive firms in the Oviedo area that offers moving truck rentals.
 
Based on the preceding graph showing the weekly market demand and supply curves, the price YouYeet must take as given is
 
.
 
Fill in the price and the total, marginal, and average revenue YouYeet earns when it rents 0, 1, 2, or 3 trucks during move-in week.
Quantity
Price
Total Revenue
Marginal Revenue
Average Revenue
(Trucks)
(Dollars per truck)
(Dollars)
(Dollars)
(Dollars per truck)
0
 
 0   –
 
1
 
 
 
 
2
 
 
 
 
3
 
 
 
 
 
The demand curve faced by YouYeet is identical to which of its other curves? Check all that apply.
 
Supply curve
 
Marginal revenue curve
 
Average revenue curve
 
Marginal cost curve
The image is a graph illustrating the demand and supply curves for medium trucks. The horizontal axis represents the quantity of medium trucks (in hundreds), ranging from 0 to 10. The vertical axis shows the price in dollars per medium truck, ranging from 0 to 200. **Key Elements of the Graph:** 1. **Demand Curve (Blue):** - This curve slopes downward from left to right. - It starts at $200 for 0 trucks and ends at $0 for 10 trucks, indicating that as the price decreases, the quantity demanded increases. 2. **Supply Curve (Orange):** - This curve slopes upward from left to right. - It starts at $0 for 0 trucks and ends at $200 for 10 trucks, showing that as the price increases, the quantity supplied increases. 3. **Equilibrium Point:** - Marked by a black dashed line intersecting both the demand and supply curves. - This point occurs where the quantity is 5 (500 medium trucks) and the price is $100. - It represents the market equilibrium where the quantity demanded equals the quantity supplied. This interaction between the demand and supply curves demonstrates the basic concept of market equilibrium in economics.
Transcribed Image Text:The image is a graph illustrating the demand and supply curves for medium trucks. The horizontal axis represents the quantity of medium trucks (in hundreds), ranging from 0 to 10. The vertical axis shows the price in dollars per medium truck, ranging from 0 to 200. **Key Elements of the Graph:** 1. **Demand Curve (Blue):** - This curve slopes downward from left to right. - It starts at $200 for 0 trucks and ends at $0 for 10 trucks, indicating that as the price decreases, the quantity demanded increases. 2. **Supply Curve (Orange):** - This curve slopes upward from left to right. - It starts at $0 for 0 trucks and ends at $200 for 10 trucks, showing that as the price increases, the quantity supplied increases. 3. **Equilibrium Point:** - Marked by a black dashed line intersecting both the demand and supply curves. - This point occurs where the quantity is 5 (500 medium trucks) and the price is $100. - It represents the market equilibrium where the quantity demanded equals the quantity supplied. This interaction between the demand and supply curves demonstrates the basic concept of market equilibrium in economics.
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