Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 6, Problem 11QE
Once a book has been written, would an author facing an
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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.
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Chapter 6 Solutions
Microeconomics
Ch. 6.1 - If when price rises by 4 percent, quantity...Ch. 6.1 - Prob. 2QCh. 6.1 - Prob. 3QCh. 6.1 - Prob. 4QCh. 6.1 - Prob. 5QCh. 6.1 - Prob. 6QCh. 6.1 - Prob. 7QCh. 6.1 - Prob. 8QCh. 6.1 - Prob. 9QCh. 6.1 - Prob. 10Q
Ch. 6 - Determine the price elasticity of demand if, in...Ch. 6 - A firm has just increased its price by 5 percent...Ch. 6 - When tolls on the Dulles Airport Greenway were...Ch. 6 - Prob. 4QECh. 6 - Prob. 5QECh. 6 - Prob. 6QECh. 6 - Prob. 7QECh. 6 - Economists have estimated the following...Ch. 6 - Prob. 9QECh. 6 - A newspaper recently lowered its price from 5.00...Ch. 6 - Once a book has been written, would an author...Ch. 6 - Prob. 12QECh. 6 - Prob. 13QECh. 6 - Suppose average movie ticket prices are 8.50 and...Ch. 6 - Which of the following producers would you expect...Ch. 6 - Prob. 16QECh. 6 - Prob. 17QECh. 6 - Prob. 18QECh. 6 - Prob. 19QECh. 6 - Prob. 20QECh. 6 - Prob. 21QECh. 6 - Prob. 22QECh. 6 - Prob. 1QAPCh. 6 - Prob. 2QAPCh. 6 - Prob. 3QAPCh. 6 - Prob. 4QAPCh. 6 - Prob. 5QAPCh. 6 - Price elasticity is not just a technical economic...Ch. 6 - Prob. 1IPCh. 6 - Prob. 2IPCh. 6 - Prob. 3IPCh. 6 - Prob. 4IPCh. 6 - Prob. 5IPCh. 6 - In 2004, Congress allocated over 20 billion to...Ch. 6 - In 2004, (Congress allocated over 20 billion to...Ch. 6 - Prob. 8IPCh. 6 - Prob. 9IPCh. 6 - Prob. 10IP
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- You 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_forwardGiven his current income, Rico’s demand for bagels is related to the price of bagels by the equation Q = 540 − 16P. Rico’s income elasticity of demand for bagels is known to be equal to 0.5 at all prices and incomes. If Rico’s income quadruples, his demand for bagels will be related to the price of bagels by the equation: (choose and explain one option from below) a. Q = 540 − 16P b. Q = 2,160 − 64P c. Q = 540 − 32P d. Q = 1,080 − 32P e. Q = 1,080 − 16Parrow_forward
- Viking InterWorks is one of many manufacturers that supplies memory products to original equipment manufacturers (OEMS) of desktop systems. The CEO recently read an article in a trade publication that reported the projected demand for desktop systems to be: addesktop = 1600 – 2Pdesktop + 0.6M (in millons of units), where Pdesktop is the price of a desktop system and M is consumer Income. The same article reported that the incomes of the desktop system's primary consumer demographic would increase 4.2 percent this year to $61,300 and that the selling price of a desktop would decrease to $980, both of which the CEO viewed favorably for Viking. In a related article, the CEO read that the upcoming year's projected demand for 32 GB desktop memory modules is: admemory = 1,200 - 100Pmemory - 2Pdesktop (n thousands of units), where Pmemory is the market price for a 32 GB memory module and Pdesktop is the selling price of a desktop system. The report also indicated that five new, small…arrow_forwardLorena'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. D1 Scenario D2 D3 Income per year $50,000 $50,000 $70,000 Price of movie ticket $9 $11 $11 Quantity Demanded Price of Golf $50 15 10 15 $35 25 15 30 $20 40 20 50 Instructions: Round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. a. Using the data under Di and D2, calculate the cross elasticity of Lorena's demand for golf at all three prices. (To do…arrow_forwardI'm confused with this question.arrow_forward
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