MICROECONOMICS-ACCESS CARD <CUSTOM>
11th Edition
ISBN: 9781266285097
Author: Colander
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 2QE
(a)
To determine
Determination of market
(b)
To determine
Illustration of individual and market demand curve.
(c)
To determine
Explain the changes in market demand if the current market price is $4 and increases to $8.
(d)
To determine
Effect of advertising in individual and market demand curve.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You are the manager of a firm that receives revenues of $40,000 per year from product X and $70,000 per year from product Y. The
own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is 1.6.
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?
Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (-) sign.
$
You are the manager of a firm that receives revenues of $20,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is −3, and the cross-price elasticity of demand between product Y and X is −1.6.How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (−) sign.
$ _____________
Individual and market demand
Suppose that Sean and Yvette are the only consumers of ice cream cones in a particular market. The following table shows their monthly demand schedules:
Price
Sean’s Quantity Demanded
Yvette’s Quantity Demanded
(Dollars per cone)
(Cones)
(Cones)
1
8
16
2
6
12
3
4
8
4
2
6
5
0
4
On the following graph, plot Sean’s demand for ice cream cones using the green points (triangle symbol). Next, plot Yvette’s demand for ice cream cones using the purple points (diamond symbol). Finally, plot the market demand for ice cream cones using the blue points (circle symbol).
Note: Line segments will automatically connect the points. Remember to plot from left to right.
Sean’s DemandYvette’s DemandMarket Demand048121620246543210PRICE (Dollars per cone)QUANTITY (Cones)
Chapter 4 Solutions
MICROECONOMICS-ACCESS CARD <CUSTOM>
Ch. 4.1 - Prob. 1QCh. 4.1 - Prob. 2QCh. 4.1 - Prob. 3QCh. 4.1 - Prob. 4QCh. 4.1 - Prob. 5QCh. 4.1 - Prob. 6QCh. 4.1 - Prob. 7QCh. 4.1 - Prob. 8QCh. 4.1 - Prob. 9QCh. 4.1 - Prob. 10Q
Ch. 4 - Prob. 1QECh. 4 - Prob. 2QECh. 4 - Prob. 3QECh. 4 - Prob. 4QECh. 4 - Prob. 5QECh. 4 - Prob. 6QECh. 4 - Prob. 7QECh. 4 - Prob. 8QECh. 4 - Prob. 9QECh. 4 - Prob. 10QECh. 4 - Prob. 11QECh. 4 - Prob. 12QECh. 4 - Prob. 13QECh. 4 - Prob. 14QECh. 4 - Prob. 15QECh. 4 - Prob. 16QECh. 4 - Prob. 17QECh. 4 - Prob. 18QECh. 4 - Prob. 19QECh. 4 - Prob. 20QECh. 4 - Prob. 21QECh. 4 - Prob. 22QECh. 4 - Prob. 23QECh. 4 - Prob. 24QECh. 4 - Prob. 1QAPCh. 4 - Prob. 2QAPCh. 4 - Prob. 3QAPCh. 4 - Prob. 4QAPCh. 4 - Prob. 5QAPCh. 4 - Prob. 6QAPCh. 4 - Prob. 1IPCh. 4 - Prob. 2IPCh. 4 - Prob. 3IPCh. 4 - Prob. 4IPCh. 4 - Prob. 5IP
Knowledge Booster
Similar questions
- Suppose that Felix and Janet represent the only two consumers of iced coffee in some hypothetical market. The following table presents their monthly demand schedules for iced coffee: Price (Dollars per cup) Felix's Quantity Demanded Janet's Quantity Demanded (Cups) (Cups) 1 8 12 2 5 8 3 3 6 4 1 4 5 0 2 On the following graph, plot Felix's demand for iced coffee using the green points (triangle symbol). Next, plot Janet's demand for iced coffee using the purple points (diamond symbol). Finally, plot the market demand for iced coffee using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. PRICE (Dollars per cup) 0 5 6 8 12 QUANTITY (Cups) 16 20 20 24 Felix's Demand Janet's Demand Market Demandarrow_forwardYou are the manager of a firm that receives revenues of $50,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -3, and the cross-price elasticity of demand between product Y and X is 1.8. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?arrow_forwardAriya likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Ariya's income and the cost of other types of entertainment-in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the table below show how many rounds of golf per year Ariya will demand at each price under three different scenarios. In scenario D1, Ariya's income is $80,0o00 per year and movies cost $15 each. In scenario D2, Ariya's income is also $80,000 per year, but the price of seeing a movie rises to $17. And in scenario D3, Ariya's income goes up to $100,000 per year, while movies cost $17. Scenario D1 D2 D3 Income per year $80,000 $80.000 $100,000 Price of movie ticket $15 $17 $17 Price of Golf Quantity Demanded $55 15 10 15 $40 25 15 30 $25 40 20 50 Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of…arrow_forward
- Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena’s income and the cost of other types of entertainment—in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the table below show how many rounds of golf per year Lorena will demand at each price under three different scenarios. In scenario D1, Lorena’s income is $50,000 per year and movies cost $9 each. In scenario D2, Lorena’s income is also $50,000 per year, but the price of seeing a movie rises to $11. And in scenario D3, Lorena’s income goes up to $70,000 per year, while movies cost $11. a. Using the data under D1 and D2, calculate the cross-elasticity of Lorena’s demand for golf at all three prices. (To do this, apply the midpoints approach to the cross-elasticity of demand.) Is the cross-elasticity the same at all three prices? Are movies and golf substitute goods, complementary goods, or…arrow_forwardYou run a shop that sells everything connected with coffee. Currently, you sell 21 coffee makers per month, but you would like to increase this to 55. Knowing that coffee makers and coffee beans are complements, you have decided to stimulate demand for coffee makers by decreasing the price of coffee beans. Given that you achieved your sales target for coffee makers by reducing the price of coffee beans from $1.10 to $0.89, what is the cross-price elasticity of demand between the two goods? Use the midpoint method, and round all intermediate calculations and your final answer to two decimal places if necessary.arrow_forwardConsider the downward-sloping linear demand curve in the figure at the right. Use the line drawing tool to draw and label another straight-line downward-sloping demand curve, D₁, that intersects point A and is relatively more inelastic than the original demand curve. Be sure to draw your new demand curve intersecting point A, but do not draw a vertical or horizontal line. Carefully follow the instructions above, and only draw the required object. 50- 40- 30- 20- 10- (0,33.96) 10 A 20 Quantity 30 Demand 40 50arrow_forward
- Consider the demand for shrimp shown in Figure 2. Suppose the current demand for shrimp is D (in black), the current price of a pound of shrimp is $10, and the current quantity demand of shrimp is 200K. Which of the following correctly describes an increase in the demand for shrimp, assuming the price of a pound of shrimp remains at $10? A) The demand curve for shrimp shifts right from D to D' (blue), and the quantity demand for shrimp decreases from 200K pounds to 150K pounds. B) The demand curve for shrimp shifts left from D to D'' (red), and the quantity demand for shrimp decreases from 200K pounds to 150K pounds. C) The demand curve for shrimp shifts right from D to D' (blue), and the quantity demand for shrimp increases from 200K pounds to 270K pounds. D) The demand curve for shrimp shifts left from D to D'' (red), and the quantity demand for shrimp increases from 200K pounds to 270K pounds.arrow_forwardExpress the market demand curve in equation form. Interpret the slope and the intercept of the market demand Compute the point elasticity of market demand for Krispy Kreme as price increases from PhP 20 to PhP Compute the point elasticity of market demand for Krispy Kreme as price decreases from PhP 40 to PhParrow_forwardSuppose that Tim and Alyssa are the only consumers of pizza slices in a particular market. The following table shows their annual demand schedules:arrow_forward
- Below are the supply and demand schedules for a video game. Price $200 $180 $160 $140 $120 $110 $100 $90 $80 $60 Quantity Demanded 10 15 20 25 30 35 40 45 50 55 Quantity Supplied 100 90 80 70 60 50 40 30 20 10 a) What is the equilibrium price? $ b) What is the equilibrium quantity? Assume that this video game receives a poor rating and consumers decide to purchase 45 less at each price. c) What is the new equilibrium price? $ d) What is the new equilibrium quantity? 100 40 units unitsarrow_forwardAsaparrow_forwardSuppose that Paolo and Sharon are the only consumers of ice cream cones in a particular market. The following table shows their monthly demand schedules: Price Paolo’s Quantity Demanded Sharon’s Quantity Demanded (Dollars per cone) (Cones) (Cones) 1 8 16 2 5 12 3 3 8 4 1 6 5 0 4 On the following graph, plot Paolo’s demand for ice cream cones using the green points (triangle symbol). Next, plot Sharon’s demand for ice cream cones using the purple points (diamond symbol). Finally, plot the market demand for ice cream cones using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning