The movie theater in Glendon has two types of customers: domestic students (group 1) andinternational students (group 2). At a price of p, cents, the number of movie tickets that domesticstudents are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p₂ cents, the number of movietickets that international students are willing to buy per year is given by: 92-87-0.3p₂. The total costs forthe movie theater depend on the total number of tickets sold, q₁+92, and are given by the following totalcost function C(q₁+92)=(91+9₂)².Suppose that the movie theater can identify which students are domestic and which students areinternational, and students are unable to resell movie tickets to each other. This enables the theater tocharge different prices to domestic vs international students.How many movie tickets will domestic students buy (9₁)?How many movie tickets will international students buy (9₂)?

When a monopolist is discriminating prices between two or more markets, the equilibrium prices that…

The movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p, cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p₂ cents, the number of movie tickets that international students are willing to buy per year is given by: q2-87-0.3p2. The total costs for the movie theater depend on the total number of tickets sold, 9₁ +92, and are given by the following total cost function C(q₁+q₂)=(9₁+9₂)². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. How many movie tickets will domestic students buy (9.)? How many movie tickets will international students buy (9₂)?

The movie theater in Glendon has two types of customers: domestic students (group 1) and international students (group 2). At a price of p, cents, the number of movie tickets that domestic students are willing to buy per year is given by: q₁-170-0.7p₁. At a price of p₂ cents, the number of movie tickets that international students are willing to buy per year is given by: q2-87-0.3p2. The total costs for the movie theater depend on the total number of tickets sold, 9₁ +92, and are given by the following total cost function C(q₁+q₂)=(9₁+9₂)². Suppose that the movie theater can identify which students are domestic and which students are international, and students are unable to resell movie tickets to each other. This enables the theater to charge different prices to domestic vs international students. How many movie tickets will domestic students buy (9.)? How many movie tickets will international students buy (9₂)?

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

A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qp = 150 - 50P, where P is the price of a minute. With Provider A, the cost of an extra minute is With Provider B, the cost of an extra minute is S Given your friend's demand for minutes and the cost of an extra minute with each provider, if your friend used Provider A, he would talk for minutes, and if he used Provider B, he would talk for minutes. This means your friend would pay S for service with Provider A and S for service with Provider B. Use the following graph to draw your friend's demand curve for minutes. Then use the green triangle to help you answer the questions that follow. Note: Yo U will not be graded on an. changeS Vou mako to tha 喜G
Gasoline for cars is produced in a market. There are equations for the Supply and Inverse Demand of car gasoline that model its Supply and Demand graph. These equations are (for supply), P = 20 + Qs, and (for Inverse Demand), P = 80 - Qd. Due to gasoline shortages, some sellers may be able to get access to more gasoline and produce it better than others. As a result, the federal government placed a quantity restriction of 15 units on the sellers. (Part I) Draw the market equilibrium with the government intervention (Q** and P**) of the quantity restriction. Please label the graph for slopes, the equilibrium point, etc. (Part II) What is the market equilibrium without the intervention of the government? (Part III) The government decided that the previous quantity restriction was not sufficient. So, it increased the restriction from 15 units to 20 units. Consequently, what is the new market equilibrium point with this new intervention? It is not necessary to label this point on the…
The demand functions for two products are given below. P1, P2, 91, and q2 are the prices (in dollars) and quantities for products 1 and 2. (91 12 = 1200-3p1 - 2p2 ༨༽q 900 4p1-2p2 What is the marginal demand of quantity 1 with respect to price 1? What is the marginal demand of quantity 1 with respect to price 2? What is the marginal demand of quantity 2 with respect to price 17 What is the marginal demand of quantity 2 with respect to price 2? Are these two products complementary goods or substitute goods? Select an answer
Suppose the demand curve for a product is given by: where I is average income measured in thousands dollars. The supply curve is: Q 3P 150. Q=200-2P+41 If1 =25, find the market-clearing price and quantity for the product. The market-clearing price is $ and the market-clearing quantity is (Enter your response as an integer.) 220 200 180 160- 140- 120- 100- 80- 60- 40- 20 100 200 Quantity
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 that the demand curve for a product is given by = 100 – 2 Px+a Py, = £20 is the price of another product, and where a Py %3D where Px = £20, where = 8. a) Calculate the demand for good X in this market at the current price level. How much revenue would the firm make? b) If the firm wishes to increase total revenue, would it need to increase or decrease the current price of good X? c) Calculate the cross-price point elasticity between goods X and Y at the current price level. Are the goods complements or substitutes? Note: The writing is clear and abbreviations are not allowed.
The market for organic and locally sourced foods has skyrocketed over the past decade as consumers focus on improving their eating habits. However, severe droughts have caused organic food prices to rise significantly, forcing many consumers to shop at conventional supermarkets (which are increasingly adding organic food options) instead of organic food markets such as Whole Foods. In response, companies such as Whole Foods have begun offering more nonorganic options on their store shelves in order to provide their consumers with more affordable options. Based on this response, what did companies such as Whole Foods realize about the elasticity of demand for organic foods that caused them to lower their prices by changing the type of foods they sell?
The following estimates have been obtained for the market demand for cereal In Q= 9.01- 0.68 In P+0.75In A-1.3M, where Q is the quantity of cereal,P is the price of cereal,A is the level of adverstising, and M is income. Based on this information,determine the effect on the consumption of cereal of : a: A 5 percent reduction in the price of cereal. b: A 4 percent increase in income. c: A 20 percent reduction in cereal advertising.
The coconut oil demand function (Bushena and Perloff, 1991) is Q=1,200-9.5p+16.2pp +0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, pp is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 50 cents per pound, pp is 29 cents per pound, and Q is 1,325 thousand metric tons per year. Calculate the price elasticity of demand for coconut oil and the cross-price elasticity of demand (with respect to the price of palm oil). The price elasticity of demand is e= (Enter your response rounded to three decimal places and include a minus sign.)
Johnson's Household Products has a division that produces two types of toothpaste: a regular toothpaste and a whitening tooth paste. The demand equations that relate the prices, p and q (in dollars per thousand units), to the quantities demanded weekly, x and y (in units of a thousand), of the regular toothpaste and the whitening toothpaste are given by p=3000-20 x-10 yp=3000−20x−10y and q=4000-10 x-30 yq=4000−10x−30y respectively. The fixed cost attributed to the division is $20,000/week, and the cost for producing 1000 tubes of regular and 1000 tubes of whitening toothpaste is$400 and $500, respectively. a. What is the weekly total revenue function R(x, y)? b. What is the weekly total cost function C(x, y)? c. What is the weekly profit function P(x, y)? d. How many tubes of regular and whitening toothpaste should be produced weekly to maximize the division's profit? What is the maximum weekly profit?