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What is the corresponding price elasticity of demand?

What is the corresponding price elasticity of demand?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose in a monopoly market with linear demand function, the firm produces chocolates with MC = 3.6. The monopolist's profit maximizing price is 13.7. What is the corresponding price elasticity of demand? Round your answer to 2 decimal points. Answer: Chick-Thai is the only store sells chicken sandwiches around Santa Barabar, where the inverse demand function of chicken sandwiches is p(q) 50-5q. The cost function of the chicken sandwiches is C(q) +19g+ 10. After the protest from the angry crowd, the government decides to grant a $2 subsidy for each unit of sandwiches sold. By how much will the price of chicken sandwiches change after the subsidy? Round your answer to 2 decimal points. (f you find the price will increase by 5 dollars, put in '5", if you find the price will decrease by 3.15 dollars, put in -3.15') Answer:
Transcribed Image Text:Suppose in a monopoly market with linear demand function, the firm produces chocolates with MC = 3.6. The monopolist's profit maximizing price is 13.7. What is the corresponding price elasticity of demand? Round your answer to 2 decimal points. Answer: Chick-Thai is the only store sells chicken sandwiches around Santa Barabar, where the inverse demand function of chicken sandwiches is p(q) 50-5q. The cost function of the chicken sandwiches is C(q) +19g+ 10. After the protest from the angry crowd, the government decides to grant a $2 subsidy for each unit of sandwiches sold. By how much will the price of chicken sandwiches change after the subsidy? Round your answer to 2 decimal points. (f you find the price will increase by 5 dollars, put in '5", if you find the price will decrease by 3.15 dollars, put in -3.15') Answer:
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