Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134421315
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 20, Problem 4.2P
(a)
To determine
Identify the
(b)
To determine
Identify the domestic price, domestic supply, domestic
(c)
To determine
Identify the changes in domestic price, domestic supply, domestic demand, and imports due to the imposition of the tariff.
(d)
To determine
Calculate the value of government revenue after the imposition of the tariff.
(e)
To determine
Identify the impact of tariff.
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HW Ch5
Calculate the daily total revenue when the market price is $180, $160, $140, $120, $100, $80, $60, and $40 per bippitybop. Then, use the green
point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph.
2
@
3840
3520
3200+
2880
2560+
2240
TOTAL REVENUE (Dollars)
1920
1600
1280
960 +
640+
0
0 8
16
24
32
40 48 56
64
72
80
QUANTITY (Bippitybops per day)
Total Revenue
?
According to the midpoints formula, the price elasticity of demand between points A and B on the initial graph is approximately .
Suppose the price of bippitybops is currently $60 per bippitybop, shown as point A on the initial graph. Because the price elasticity of demand between
points A and B is
, a $20-per-bippitybop decrease in price will lead to
MacBook Air
in total revenue per day.
F2
80
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5
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F6
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F7
* 8
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27
DII
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F9
F10
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Chapter 20 Solutions
Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
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