Chick-Thai is the only store sells chicken sandwiches around Santa Barabar, where the inverse demand function of chicken sandwiches is p(g) = 50 – 2q. The cost function of the chicken sandwiches is C(q) = $ +11q+ 10. After the protest from the angry crowd, the government decides to grant a $1 subsidy for each unit of sandwiches sold. By how much will the price of chicken sandwiches change after the subsidy? Round your answer to 2 decimal points. (If you find the price will increase by 5 dollars, put in "5"; if you find the price will decrease by 3.15 dollars, put in "-3.15".) Answer:

Chick-Thai is the only store sells chicken sandwiches around Santa Barabar, where the inverse demand function of chicken sandwiches is p(g) = 50 – 2q. The cost function of the chicken sandwiches is C(q) = $ +11q+ 10. After the protest from the angry crowd, the government decides to grant a $1 subsidy for each unit of sandwiches sold. By how much will the price of chicken sandwiches change after the subsidy? Round your answer to 2 decimal points. (If you find the price will increase by 5 dollars, put in "5"; if you find the price will decrease by 3.15 dollars, put in "-3.15".) Answer:

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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