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- Nonearrow_forwardWhen the price of a gallon of milk increases from $6 to $8, quantity demanded decreases to 27 gallons. Assuming the price elasticity of demand for milk is -0.3, what is the original quantity demanded? (assuming further that this is the point elasticity relative to the original point on the demand curve.) Please make sure you give a numerical answer with no units and/or space or period (.) or comma (,) before or after your answer. Enter your answer herearrow_forwardThe Vista TV Cable Co. currently has 100,000 subscribers who are each paying a monthly rate of $40. A survey reveals that there will be 1000 more subscribers for each $0.25 decrease in the rate. At what rate will maximum revenue be obtained, and how many subscribers will there be at this rate?arrow_forward
- Your friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, what is the relationship between Claire's selling price per hoodie and profit margin? (Please plot a graph dipcting the relationship) Costs ($) Base Hoodie Cost $30 Craft Supplies to design $10 Selling Website Service Charge 5%arrow_forwardAn electric power distributor charges residential customers $0.10 per kilowatt-hour (kWh). The company advertises that "green power" is available in 150 kWh blocks for an additional $4 per month. (Green power is generated from solar, wind power, and methane sources.). a. If a certain customer uses an average of 400 kWh per month and commits to one monthly 150 kWh block of green power, what is her annual power bill? b. What is the average cost per kWh with green power during the year?arrow_forwardYour friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, please choose the graph that shows the relationship between CLaire's selling price per hoodie and profit margin? Costs ($) Base Hoodie Cost $30 Craft Supplies to Design $10 Selling Website Service Charge 5%arrow_forward
- i need the answer quicklyarrow_forwardA used car dealership rents 210 cars for $9 a day. They want to increase the price to maximize their profits. They notice that if they increase the price by $1.25 that they have fewer rentals. Create an equation for profit for the car dealership rental sales. Determine the price of the rental that maximizes profitarrow_forwardJust 2.3arrow_forward
- How has technology eased the task of assessing actual food costs and actual beverage costs?arrow_forwardAn electric power distributor charges residential customers $0.10 perkilowatt-hour (kWh). The company advertises that “green power” is available in 150 kWh blocks for an additional $4 per month. (Green power is generated from solar, wind power, and methane sources). Solve, a. If a certain customer uses an average of 400 kWh per month and commits to one monthly 150 kWh block of green power, what is her annual power bill? b. What is the average cost per kWh with green power during the year? c. Why does green power cost more than conventional power?arrow_forwardShow transcribed image text Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $30,100 to $28,100. The marketing group estimates that this rebate will increase sales over the next year from 42,000 to 54,400 vehicles. Suppose Honda's profit margin with the rebate is $5,260 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea? Hint: View this question in terms of incremental profits. The cost of the rebate will be $ ____ million. (Round to one decimal place.) The benefit of the rebate will be $ _____ million. (Round to one decimal place.) Is it a good idea? does or does not Offering the rebate ____ look attractive.arrow_forward
- Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning