Suppose that the demand curve for movies for college students is100-Q, = 80 – 1.00p90-and for other town residents is80-Q2 = 20 - 0.25p70-The town's total demand curve is9 60-Q =* 50-E 40-30-2010-204060100120Q, MoviestvMacBook AirDD80F10F11F8F9F6F7escF4F5F1F2F3@#$%&34578.云* 00p, Price per movie吕:**

Given: The demand curve for college students: Q1=80-1.00p The demand curve for other town residents:…

Answered: Suppose that the demand curve for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The manager of a bicycle shop has found that, at a price (in Rands) of p(x) = 150 –x/4 per bicycle, x bicycles will be sold . Answer the following:• Find an expression for the total revenue from the sale of x bicycles. (Hint: Revenue = Demand *Price. )• Find the expression for the quantity to be sold q if the demand function demand is given byp = -10q + 3200• What is the number of bicycles x, sold if the price is R40
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Problem Number 8 Economics: Elasticity of Demand for DVD Rentals. The demand for DVD rentals at Klix Video is given by q= D(x) = 120 - 20x, where q is the number of DVDs rented per day at x dollars per rental. Find each of the following. a) The elasticity as a function of x b) The elasticity at x = 2 and at x = c) The value of x for which E(x) = 1. Interpret the meaning of this price. d) The total-revenue function, R(x) = (x) D(x) e) The price x at which total revenue is a maximum 4. Interpret the meaning of these values of the elasticity.
Above is the demand schedule for tickets to a Carnegie Hall performance of the Grateful Dead. Carnegie Hall seats 1,800 people. What is the equilibrium price and quantity for a concert of the Grateful Dead at Carnegie Hall? If tickets were sold for $18, what would happen (be specific)?
PRICE (Dollars per room) 500 450 400 350 300 250 200 150 100 50 0 Demand 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Graph Input Tool Market for Triple Sevens's Hotel Rooms Price (Dollars per room) Quantity Demanded (Hotel rooms per night) Demand Factors Average Income (Thousands of dollars) Airfare from LAX to LAS (Dollars per roundtrip) Room Rate at Exhilaration (Dollars per night) 350 150 50 250 200 For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Triple Sevens is charging $350 per room per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevens rooms per night. Therefore, the income elasticity of demand is from rooms per night to , meaning that hotel rooms at the Triple Sevens are If the price of an airline ticket from LAX to LAS were to increase by 20%, from $250 to $300 roundtrip, while all other demand factors…
The following graph displays four demand curves (PP, QQ, RR, and SS) that intersect at point V. PRICE (Dollars per unit) 100 90 80 70 60 8 50 40 30 20 10 4 0 + 0 P 10 20 a R +* * W + S + S Z 8 30 40 50 60 QUANTITY (Units) R O P + 70 80 90 100 Statement Between points V and W, curve PP is perfectly elastic. Between points V and Y, curve RR is elastic. ? Using the graph, complete the table that follows by indicating whether each statement is true or false. Curve RR is less elastic between points V and Y than curve QQ is between points V and X. True False O O
Reid has determined that the daily demand for doughnuts at his favorite bakery is described by the following equation: Qd = 3,300 - 3000P where Qd is the daily quantity demanded in number of doughnuts and P is the price per doughnuts in dollars. a. What is the point price elasticity of demand at a price of $0.70? b. Assume the price is currently $0.70. What is the marginal revenue obtained by selling one additional doughnut? c. The marginal cost of producing an additional doughnut is $0.10. What price should the bakery establish in order to maximize profits?
Suppose a movie theater determines that the elasticity of demand for movie tickets is -2.0 for senior citizens and –1.5 for adults under age 65, and the marginal cost is $2 per consumer. Use the Lerner index to determine how much senior citizens should be charged and how much adults under age 65 should be charged. A different movie theater, which faces the same marginal costs, charges consumers $6 for matinee movies and $10 for evening movies. Use the Lerner Index to calculate the price elasticity of demand for matinee consumers and evening consumers.
Suppose the demand for crossing the Golden Gate Bridge is given by Q = 10,000 − 1,000P. a. If the toll (P) is $3, how much revenue is collected? b. What is the price elasticity of demand at this point? c. Could the bridge authorities increase their revenues by changing their price? d. In 2019, the San Francisco Bay area Water Emergency Transportation Authority (WETA) announced it was considering the implementation of hovercraft service as a supplement to existing ferries. Suppose that a fast hovercraft alternative to the Golden Gate Bridge is implemented between Marin County and San Francisco. How would the new service affect the elasticity of demand for trips across the Golden Gate Bridge?

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Suppose that the demand curve for movies for college students is Q, = 80 - 1.00p and for other town residents is Q2 = 20-0.25p. %3D The town's total demand curve is