Suppose the market for cars has two segments, businesses and home users. The demand curve for cars by businesses is p=120-40gb where q, is the quantity of cars demanded by businesses with the price is p. The demand curve for cars by home users is p= 40 - 10gh where q is the quantity of cars demanded by home users when the price is p. Both businesses and home users will never demand negative amounts of cars, so for sufficiently high prices, the demand will be 0. Which of the following figures represent the market demand curve for cars? a. b. C. P 120 110 100 90 P P 120 120 110 110 100 100 882 8 2 2 2 2 2 90 90 80 80 70 70 70 60 60 60 50 50 40 40 30 30 30 20 20 20 10 10 10 1 2 3 4 5 6 7 B 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Q Q d. e. P P 120 120 110 100 90 80 70 60 50 40 30 20 10 110 100 90 80 70 60 50 40 30 & 28 28 &&&& + 20 10 6 7 8 9 10 11 12 Q 1 2 3 4 5 1 9 с P a 12 3 4 5 6 7 8 9 10 11 12 Q 1 2 3 4 5 6 7 8 9 10 11 12 Q

Suppose the market for cars has two segments, businesses and home users. The demand curve for cars by businesses is p=120-40gb where q, is the quantity of cars demanded by businesses with the price is p. The demand curve for cars by home users is p= 40 - 10gh where q is the quantity of cars demanded by home users when the price is p. Both businesses and home users will never demand negative amounts of cars, so for sufficiently high prices, the demand will be 0. Which of the following figures represent the market demand curve for cars? a. b. C. P 120 110 100 90 P P 120 120 110 110 100 100 882 8 2 2 2 2 2 90 90 80 80 70 70 70 60 60 60 50 50 40 40 30 30 30 20 20 20 10 10 10 1 2 3 4 5 6 7 B 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Q Q d. e. P P 120 120 110 100 90 80 70 60 50 40 30 20 10 110 100 90 80 70 60 50 40 30 & 28 28 &&&& + 20 10 6 7 8 9 10 11 12 Q 1 2 3 4 5 1 9 с P a 12 3 4 5 6 7 8 9 10 11 12 Q 1 2 3 4 5 6 7 8 9 10 11 12 Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose the demand function for smart phones is given by Q(P) = AP¹-a 1-a where A> 0 and a > 1. Use calculus to show that the price elasticity is equal to 1 — a everywhere along the whole curve. (Hint: Recall that if f(x) = x³, then ƒ'(x) = ßxß-¹). Interpret this result.
Suppose we have two people in the market for good x: Adam, Barbara. Their demand functions are as follows: A = = max {0, 20 2p}, x³ = max{ — XB 0,30 - 2p). Find market demand and the price elasticity of demand at p = 40.
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.
Can I get the answer for 3,4&5 please
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)?
Suppose a firm sells a product that has many close substitutes and is seen as a luxury item. The demand for the good is likely to be _______and the price elasticity of demand (in absolute value) would be ________ a)inelastic, greater than one b)elastic, greater than one c)elastic, less than one d)inelastic, less than one
Demand Factor Initial Value Average American household income $40,000 per year Round trip airfare from Los Angeles (LAX) to Las Vegas (LAS) $200 per round trip Room rate at the Lucky Hotel and Casino, which is near the Big Winner $200 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Big Winner's Hotel Rooms 500 I Price (Dollars per room) 450 200 400 Quantity Demanded (Hotel rooms per night) 300 350 300 250 Demand Factors 200 150 Average Income (Thousands of dollars) Demand 40 100 50 Airfare from LAX to LAS (Dollars per round trip) 200 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Room Rate at Lucky (Dollars per night) 200 PRICE (Dollars per room)
Since the supply curve intersects the horizontal axis, all of the points along the supply curve shown are inelastic: True or false and Explain your choice Most likely, the elasticity of demand for transportation is greater than the elasticity of demand for cars. Revenue remains unchanged along a straight-line demand curve.
The diagram to the right shows a hypothetical demand curve for apples. The slope of this curve is response rounded to two decimal places. Include minus sign if appropriate.) (Enter your Price (dollars per bushel) 100.00 90.00 80.00- 70.00- 60.00- 50.00 40.00 30.00 20.00- 10.00+ Demand Curve for Apples 0.00 0 10 20 30 40 50 60 70 80 90 100 Quantity (bushels per week)
You own a bakery and shop that makes and sells gourmet doggie treats. You have done market research and you know with certainty that your product is a normal good, not an inferior good. The current demand function for your gourmet doggie treats is: QD = 480 -6*P which of course means the equation for your current demand curve is: P = 80 -(1/6)*Q You are opening a new shop in a new part of town, and you know that incomes in that part of town are much lower than incomes are where your shop is now. Which of the following is most likely the demand curve in your new shop? Multiple Choice O P=68- (1/6)*Q P = 102 - (1/6)*Q P=92-(1/6)*Q P = 88 - (1/6)*Q
DINKs are households with "double income, no kids", and such households are invading your neighbourhood. You decide to take advantage of this influx by starting a gourmet take-away food store. Assume that these DINKs in your neighbourhood are your only potential customers.You know that the price elasticity of demand for your food from DINKs is 0.5, and their income elasticity of demand is 1.5.From the standpoint of the quantity that you sell, explain which of the following changes would concern you most.First, the number of DINKs in your neighbourhood falls by 10 percent.Second, the average income of DINKs falls by 5 percent.
suppose the demand curve for a product is given by Q=10-2P+Ps1,where P is the price of the product and Ps is the price of a substitute good. the price of the substitute good is $2.00. a)suppose P=$1.00, what is the price elasticity of demand?what is the cross- price elasticity of demand? b)suppose the price of the good, P, increases to $2.00. Now what is the price elasticity of demand, and what is the cross-prices elasticity of demand?