EBK ECONOMICS
21st Edition
ISBN: 8220106637173
Author: McConnell
Publisher: YUZU
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Question
Chapter 6, Problem 5DQ
To determine
Price discrimination .
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Students have asked these similar questions
Q2.
Your brother is considering two cell phone providers i.e. UFONE and MOBILINK.
UFONE charges Rs.520 (super card) per month for the service regardless of the number of phone
calls made. MOBILINK does not have a fixed service fee but instead charges Rs. 1 per minute for
calls. Your brother's monthly demand for minutes of calling is given by the equation
Q = 150 - 50P, where P is the price of a minute
a. With each service provider, what is the cost to your brother of an extra minute on the
phone?
b. In light of your answer to (a) part, how many minutes would your brother talk on the
phone with each service provider?
c. How much would he end up paying each provider every month?
On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $30, $45, $60, $75, $90,
$105, and $120 per bike.
1280
1200
Total Revenue
1120 -
1040
980
880
800
720
640
560
o15 30
45
60
75
90
105 120
135
150 165
180
PRICE (Dollars per bike)
According to the midpoint method, the price elasticity of demand between points A and B is approximately ▼
Suppose the price of bikes is currently $30 per bike, shown as point B on the initial graph. Because the demand between points A and B is
a $15-per-bike increase in price will lead to
in total revenue per day.
In general, in order for a price decrease to cause a decrease in total revenue, demand must be
TOTAL REVENUE (Dollars)
The following chart tells you the willingness to pay (WTP) for generic and custom refrigerators for three types and
the number of each type on your market. Each refrigerator costs $200 to make the generic and $250 to make
the custom.
High Value
Medium Value
Low Value
#of each type
20
30
30
Value for generic
600
500
175
Total value for Custom
750
575
200
If you were only to sell the generic refrigerator, what price should you set?
If you were to sell both refrigerator types, what price should you set for the custom refrigerator?
Chapter 6 Solutions
EBK ECONOMICS
Ch. 6 - Explain why the choice between 1, 2, 3, 4, 5, 6,...Ch. 6 - Prob. 2DQCh. 6 - The income elasticities of demand for movies,...Ch. 6 - Research has found that an increase in the price...Ch. 6 - Prob. 5DQCh. 6 - Suppose that the total revenue received by a...Ch. 6 - What are the major determinants of price...Ch. 6 - Calculate total-revenue data from the demand...Ch. 6 - Prob. 4RQCh. 6 - In 2015, Paul Gauguins painting When Will You Many...
Ch. 6 - Suppose the cross elasticity of demand for...Ch. 6 - Look at the demand curve in Figure 6.2a. Use the...Ch. 6 - Prob. 2PCh. 6 - Graph the accompanying demand data, and then use...Ch. 6 - Danny Dimes Donahue is a neighborhoods 9-year-old...Ch. 6 - What is the formula for measuring the price...Ch. 6 - ADVANCED ANALYSIS Currently, at a price of 1 each....Ch. 6 - Lorena likes to play golf. The number of times per...
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