The demand for a 12-ounce bottle of sparkling water is given in the table. Demand Schedule for Sparkling Water in 12-ounce Bottles Price (dollars per bottle) Demand (million bottles) 2.29 25 2.69 9 3.09 3 3.49 2 3.89 4.29 1 0.5 (a) Write the function for the exponential model that gives demand in million bottles, as a function of price per bottle p, with data from 2.29 ≤ p ≤ 4.29. (Round all numerical values to two decimal places. Be sure you use the correct input variable p.) D(p) = 1520.42 .15P Does the model indicate a price above which consumers will purchase no bottles of water? The model is exponential and does not cross the horizontal axis. Therefore there is no price above which consumers will not purchase water. (b) What quantity of water will consumers purchase when the market price is $2.67? (Round your answer to two decimal places.) million bottles (c) Calculate the amount that consumers willing and able to spend to purchase the quantity found in part (b). (Round your answer to one decimal place.) $ × million (d) Calculate consumer surplus when the market price is $2.67. (Round your answer to two decimal places.) × million +A
The demand for a 12-ounce bottle of sparkling water is given in the table. Demand Schedule for Sparkling Water in 12-ounce Bottles Price (dollars per bottle) Demand (million bottles) 2.29 25 2.69 9 3.09 3 3.49 2 3.89 4.29 1 0.5 (a) Write the function for the exponential model that gives demand in million bottles, as a function of price per bottle p, with data from 2.29 ≤ p ≤ 4.29. (Round all numerical values to two decimal places. Be sure you use the correct input variable p.) D(p) = 1520.42 .15P Does the model indicate a price above which consumers will purchase no bottles of water? The model is exponential and does not cross the horizontal axis. Therefore there is no price above which consumers will not purchase water. (b) What quantity of water will consumers purchase when the market price is $2.67? (Round your answer to two decimal places.) million bottles (c) Calculate the amount that consumers willing and able to spend to purchase the quantity found in part (b). (Round your answer to one decimal place.) $ × million (d) Calculate consumer surplus when the market price is $2.67. (Round your answer to two decimal places.) × million +A
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
am. 108.
Transcribed Image Text:The demand for a 12-ounce bottle of sparkling water is given in the table.
Demand Schedule for Sparkling Water in
12-ounce Bottles
Price
(dollars per bottle)
Demand
(million bottles)
2.29
25
2.69
9
3.09
3
3.49
2
3.89
4.29
1
0.5
(a) Write the function for the exponential model that gives demand in million bottles, as a function of price per bottle p, with data from 2.29 ≤ p ≤ 4.29. (Round all numerical values to two decimal places. Be sure
you use the correct input variable p.)
D(p) = 1520.42 .15P
Does the model indicate a price above which consumers will purchase no bottles of water?
The model is exponential and does not cross
the horizontal axis. Therefore there is no price
above which consumers will not purchase water.
(b) What quantity of water will consumers purchase when the market price is $2.67? (Round your answer to two decimal places.)
million bottles
(c) Calculate the amount that consumers willing and able to spend to purchase the quantity found in part (b). (Round your answer to one decimal place.)
$
× million
(d) Calculate consumer surplus when the market price is $2.67. (Round your answer to two decimal places.)
× million
+A
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