Revenue R from the sale of x units of a product is found by multiplying the price by the number of items sold.(a) Factor the right side of R=200x - x².R =(b) What is the expression for the price of the item?The consumer expenditure, in dollars, for a commodity is the product of its market price, p, and the number of units demanded, x. Suppose that for a certain commodity, theconsumer expenditure is given by 9,000p - 150p².(a) Factor this in order to find an expression for the number of units demanded. (Simplify your answer completely.)x =units(b) Use (a) to find the number of units demanded when the market price is $33.x =unitsA company's average cost per unit when x units are produced is defined to beTotal costAverage cost =ΧSuppose a company's average costs are given by6000Average cost =+35+0.2x.XExpress the average-cost formula as a single fraction.Average cost =3

Answered: Revenue R from the sale of x units of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Exercise 2 Suppose you have the following hypothetical demand or sales function. Qx= -4Px+2Py+0.201+0.04A and PX = $200, (price of good X) PY =$230, (price of good Y) 1 = $1,500 (disposable per capita income) A=$12,000 (advertizing expenditures) a. Write out a reduced demand function b. Solve for and write out the demand curve equation c. Give a narrative interpretation for the coefficient of I d. How could we classify good X and good Y? Explain why.
(b) It is thought that a consumer measures the utility, u(x, y), of possessing a quantity, z, of apples and a quantity, y, of oranges by the formula u(x, y) = rªyla, where a is a constant. Suppose that apples cost p dollars each and oranges q dollars each. If the consumer has M dollars to spend on apples and oranges, use the method of Lagrange multipliers to find the quantity of each that he will buy in terms of a, p, q and M. [You are not required to justify the use of the method of Lagrange multipliers here.] For equally priced apples and oranges when he has one dollar to spend, he is actually observed buying one apple and two oranges. What value of a does this imply?
In the market for widgets supply and demand are estimated as follows : P= 20-1.8 Qd and P= 2+Qs. Graph these curves and solve for equillibrium price and quantity
Assume the demand curve for Pepsi passes through the following two points. Price per bottle of Pepsi $2.25 $1.75 Number of bottles of Pepsi sold 100,000 275,000 When plotting the demand curve (with price in dollars on the y-axis and quantity in bottles on the x-axis), when the y-value is $2.25, the x-value is the y-value is $1.75, the x-value is bottles. (Enter your responses as whole numbers.) bottles, and when
The utility function of a consumer is u = √x + 2y. (a) Calculate how much MRS of that consumer when x = 4. (b) If the consumer currently consumes 4 units of goods x and the price ratio of Px / Py = 1/4, then the consumer should increase or decrease the consumption of goods x?
43. If Mary's income increases and she consumes less rice. Therefore, rice is: 44. If the price of one product increases, the quantity demanded of another product increases, we can conclude that the products are:
Utility is a type of function that occurs in economics. When a consumer receives x units of a certain product, a certain amount of pleasure, or utility U, is derived. The graph represents a typical utility function. a) Find the average rate of change of U as x changes from 0 to 1; from 1 to 2; from 2 to 3; from 3 to 4. b) Why do the average rates of change decrease as x increases? a) The average rate of change of U as x changes from 0 to 1 is. (Type an integer or a decimal.) C Utility (pleasure units) AU 200- 150- 100- 50- 0 (1,67) (2,106) I (3,134) (4,156) 2 Number of units of product 4 X
Tim is buying pizza and salad for a company lunch. Suppose that a slice of pizza costs $4.00, and a bowl of salad costs $5.00. Let ♬ be the amount in dollars that Tim spends on pizza and salad. If Tim buys P slices of pizza and S bowls of salad, then the total amount of money he spends (B) can be represented by the equation Now rearrange the equation you wrote above so that S is written in terms of E and P. The quantity of salad he buys can be represented by the equation Suppose Tim has $40.00 to spend on pizza and salad; that is, E = $40.00. Complete the following table with the values of P or S that make the equation true. Hint: To complete the first row, determine the number of salad bowls Tim can purchase with $40.00, when the number of pizza slices he purchases is 0. Budget Pizza (Dollars) (Slices) 40.00 0 40.00 5 40.00 Use the black line (plus symbols) to plot the line illustrating the combinations of pizza and salad that Tim can purchase with a budget of $40.00. SALAD (Bowis) 14…
Consumer demand for Caramel Iced Mochas (a kind of drink) at a coffee shop is given by p=7−.25x dollars per drink, where x items are drinks are sold every day. Total consumer spending S is the product of the price per drink and the number of drinks sold. Which of the following is a formula for total consumer spending?
An economist is interested in how the price of a certain item affects its monthly sales. At a price of $p, a quantity, q, of the item is sold each month. Suppose that we write q=D(p). Using complete and descriptive sentences, explain the meaning of each of the following statements: a) D(500) = 2,000. b) D'(500) =-25.
Economists like to calculate the percent changes in numbers. If the price of gasoline was $3.25 a gallon last week and this week it is $3.95 a gallon, what is the percentage change in price? 33.3 percent 82.3 percent 21.5 percent 17.7 percent
Linda loves buying shoes and going out to dance. It costs Linda $50 to buy a new pair of shoes or to spend an evening out dancing. Assume that she has $500 to spend on shoes and dancing. 1. What is the equation for her budget line? Draw it with T on the vertical axis and label the slope and intercept.

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