Bundle: Microeconomics, Loose-leaf Version, 10th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
10th Edition
ISBN: 9781305782570
Author: William Boyes; Michael Melvin
Publisher: Cengage Learning
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Chapter 15, Problem 3E
To determine
To explain:
The number of units of resources the firm will want to acquire.
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Kendra bought 208 donuts for $80. Her profit was $45 once she had sold 100 donuts. Which equation
below represents Kendra's profit P(n).
as a function of the number sold, n?
A local firm produces three types of Pizza, for delivery to homes in the area. The owners have completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week).
Price
Pizza A (Qd)
Pizza B (Qd)
Pizza C (Qd)
12
800
0
100
11
840
0
200
10
880
400
300
9
920
800
400
8
960
1200
500
7
1000
1600
600
6
1040
2000
700
5
1080
2400
800
Calculate price elasticity demand for all three pizzas over the price range £9 to £10.
Why does a firm want to know cross elasticity demand?
A local firm produces three types of pizza, for delivery to homes in the area. The owners have completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week).
Price
Pizza A (Qd)
Pizza B (Qd)
Pizza C (Qd)
12
800
0
100
11
840
0
200
10
880
400
300
9
920
800
400
8
960
1200
500
7
1000
1600
600
6
1040
2000
700
5
1080
2400
800
Plot the three demand curves, on one graph.Calculate PED for all three pizzas over the price increases from £9 to £10. For pizza C only, what price must be charged if the firm wishes to maximize its sales revenue? (Hint: more elastic demand will affect the revenue adversely).
Chapter 15 Solutions
Bundle: Microeconomics, Loose-leaf Version, 10th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
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