Concept explainers
The current toll for the use of a certain toll road is $2.50. A study conducted by the state highway department determined that, with a toll of
Compute the elasticity of demand at
Want to see the full answer?
Check out a sample textbook solutionChapter 5 Solutions
Calculus & Its Applications (14th Edition)
Additional Math Textbook Solutions
Intro Stats, Books a la Carte Edition (5th Edition)
Elementary & Intermediate Algebra
APPLIED STAT.IN BUS.+ECONOMICS
Calculus for Business, Economics, Life Sciences, and Social Sciences (14th Edition)
Beginning and Intermediate Algebra
Precalculus: A Unit Circle Approach (3rd Edition)
- Estimate the age of a newly discovered fossil for which the ratio of carbon-14 to carbon-12 is R=1/1014.arrow_forwardTable 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to 2012. a. Let x represent time in years starting with x=0 for the year 1997. Let y represent the number of seals in thousands. Use logistic regression to fit a model to these data. b. Use the model to predict the seal population for the year 2020. c. To the nearest whole number, what is the limiting value of this model?arrow_forwardWhat is the y -intercept on the graph of the logistic model given in the previous exercise?arrow_forward
- Use the table of values you made in part 4 of the example to find the limiting value of the average rate of change in velocity.arrow_forwardAssume that the production of 1 unit of magnesium requires 0.8 units of magnesium and 0.2 units of aluminum, and that the production of 1 unit of aluminum requires 0.3 units of magnesium and 0.2 units of aluminum.arrow_forwardThe population of mosquitoes in a certain area increases at a rate proportional to the current population, and in the absence of other factors, the population doubles each week. There are 400,000 mosquitoes in the area initially, and predators (birds, bats, and so forth) eat 50,000 mosquitoes/day. Determine the population of mosquitoes in the area at any time. (Note that the variable t represents days.)arrow_forward
- The population of the city of Bingville increases at a rate proportional to the numbers of itsinhabitants present at any time t. If the population of Bingville was 30,000 in 1970 and 35,000 in1980, what will be the population of Bingville in 1990?arrow_forwardConsider the Cobb-Douglas model for a certain manufacturing plant, 60H0.610.4 W where W is the number of washing machines produced per year, I is the annual investment in capital (in thousands of dollars), and H is the total number of work hours. The annual budget, that pays capital and employees, must be 1 million dollars. Also, employees are paid 10 dollars per hour. Work hours: = Find the number of work hours and annual capital investment that will maximize production. machines. hours. Capital Investment: dollars (in thousands) How many washing machines are produced when production is maximized:arrow_forwardThe output of an economic system Q, subject to two inputs, such as labor L and capital K, is often modeled by the Cobb-Douglas production function Q=cLakb. When a + b = 1, the case is called constant returns to scale. Suppose Q = 7200, a = b= and c = 18. Complete parts (a) and (b). 1 2 " 3 3 a. Find the rate of change of capital with respect to labor, (Type an equation.) ... " dk -. First substitute the given values of Q, a, b, and c into the production function. dLarrow_forward
- Shan Foods estimated the following demand equation for its product using data from 26 supermarkets around the country for the month of April: Q = - 10,400 - 84P + 40PX + 10.4 l + 0.40 A + 0.50 M (4.002) (34.5) (12.2) (5.04) (0.18) (0.42) R2 = 0.67 n = 47 F = 3.78 Assume the following values for the independent variables: Q = Quantity sold per month P(in cents) = Price of the product = 1000 PX (in cents) =Price of leading competitor’s product = 1200 I(in dollars) = Per capita income of residents = 11,000 A (in dollars) = Monthly advertising expenditure = 20,000 M = Number of microwave ovens sold in the SMSA in which the supermarket is located = 10,000 Using this information, answer the following questions: Compute T stats of each variable Compute elasticities for each variable. How concerned do you think this company would be about the impact of a recession on its sales? Explain. Do you think that this firm should cut its price to increase its market share? Explain.…arrow_forwardShan Foods estimated the following demand equation for its product using data from 26 supermarkets around the country for the month of April: Q = - 10,400 - 84P + 40PX + 10.4 l + 0.40 A + 0.50 M (4.002) (34.5) (12.2) (5.04) (0.18) (0.42) R2 = 0.67 n = 47 F = 3.78 Assume the following values for the independent variables: Q = Quantity sold per month P(in cents) = Price of the product = 1000 PX (in cents) =Price of leading competitor’s product = 1200 I(in dollars) = Per capita income of residents = 11,000 A (in dollars) = Monthly advertising expenditure = 20,000 M = Number of microwave ovens sold in the SMSA in which the supermarket is located = 10,000 Using this information, answer the following questions: Compute T stats of each variable Compute elasticities for each variable. How concerned do you think this company would be about the impact of a recession on its sales? Explain. Do you think that this firm should cut its price to increase its market share? Explain. e.…arrow_forwardIn a hybrid-engine vehicle, energy from battery (“b" in Amperes) and from 95 octane unleaded gasoline ("g" in liters) are used intermittently to maximize the distance to be travelled (mileage) between fill- ups and charge-ups. If mileage (M) in kilometers is found out to be: M= 90 b+ 100 g - 3 b' - 5 g? - 2 b g find the values of “b" and “g" that will maximize mileage M, find the maximum mileage and prove that this is a maximum.arrow_forward
- Functions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage LearningAlgebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage
- Trigonometry (MindTap Course List)TrigonometryISBN:9781337278461Author:Ron LarsonPublisher:Cengage LearningAlgebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning