MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
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Question
Chapter 11, Problem 2QAP
(a)
To determine
Determine whether the given statement is correct.
(b)
To determine
Identify if the given statement is necessary for an economy.
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DN1(b, c)
Amtrak has a monopoly on rail travel in the U.S. It uses price discrimination to
offer a discounted price for adults who are currently enrolled students. The
marginal cost per train ticket from Baltimore to New York is 100. The demand for
regular tickets is P=1000-5Q and the demand for student tickets is P-500-Q.
b. Find the monopoly price and quantity for regular adult tickets?
c. Find the monopoly price and quantity for discounted student tickets.
-x
230.
If the demand Curve is the form of P= 10e ? where P is the price and x is the demand,
what is the Price elasticity of Demand?
(a) Kx
(b) 는
(c) 5x
(d) None
QUESTION 48
48. Assuming the demand for illegal drugs is inelastic in the relevant range of prices and the supply of illegal drugs is
relatively elastic, what will be the impact of a government drug policy that is aimed at curtailing the flow of drugs into
the country?
a) the quantity of drugs consumed will not change very much while the price will increase significantly, and the policy will
be, to a large extent, self-defeating, as the increase in price will increase the suppliers' financial resources.
b) the quantity of drugs consumed will be significantly reduced.
c) the price of drugs will not be affected very much.
d) none of the above.
Chapter 11 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 11.1 - Prob. 1QCh. 11.1 - Prob. 2QCh. 11.1 - Prob. 3QCh. 11.1 - Prob. 4QCh. 11.1 - Prob. 5QCh. 11.1 - Prob. 6QCh. 11.1 - Prob. 7QCh. 11.1 - Prob. 8QCh. 11.1 - Prob. 9QCh. 11.1 - Prob. 10Q
Ch. 11 - Prob. 1QECh. 11 - Prob. 2QECh. 11 - Prob. 3QECh. 11 - Prob. 4QECh. 11 - Prob. 5QECh. 11 - Prob. 6QECh. 11 - Prob. 7QECh. 11 - Prob. 8QECh. 11 - Prob. 9QECh. 11 - Prob. 10QECh. 11 - Prob. 11QECh. 11 - Prob. 12QECh. 11 - Prob. 13QECh. 11 - Prob. 14QECh. 11 - Prob. 15QECh. 11 - Prob. 16QECh. 11 - Prob. 17QECh. 11 - Prob. 18QECh. 11 - Prob. 19QECh. 11 - Prob. 1QAPCh. 11 - Prob. 2QAPCh. 11 - Prob. 3QAPCh. 11 - Prob. 4QAPCh. 11 - Prob. 5QAPCh. 11 - Prob. 1IPCh. 11 - Prob. 2IPCh. 11 - Prob. 3IPCh. 11 - Prob. 4IPCh. 11 - Prob. 5IP
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- urgentttt needarrow_forwardQuestion 3 A local tailor has two types of customers, private customers and department stores. The market of private customers has a demand given by Qp = 2000 – 100P, and the market of department stores = has a demand given by Qs equal to zero. 4000 100P. The marginal cost of one more alteration is constant and (a) (b) What is the value of each demand's elasticity at the optimal price level? (c) What is the total consumer surplus (for both groups)? (d) Suppose that the tailor can charge different prices to each type of customer. What are the optimal prices? What is the total profit? Suppose that a regulation prohibits price discrimination. What is the optimal (uniform) price when the markets are combined? How much does the regulation cost the tailor in terms of forgone profits? (e) What happens to consumer surplus?arrow_forward(a) By how much do revenues increase if this firm sells one more (small) unit of output?By how much does its cost go up if it produces one more (small) unit of output? (b) What is the optimal price and quantity the monopolist should charge and sell? (c) What is the profit the monopolist makes? Should the firm shut down in the short or long run? (d) If the company increases its price by a small fraction (let us say 1%), by what proportion does demand go down?arrow_forward
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