Demand for blue-fin tuna Price ($/lb) Quantity demanded (lbs) 30 700 60 600 90 500 120 400 150 300 180 200 A fishing boat just returned from the sea with its hold full of blue-fin tuna. The demand for blue-fin tuna is given in the table above. This boat is the only one that has blue-fin tuna for sale this day. The boat captain is considering asking $ 150 per pound of his tuna. His first mate disagrees and argues for asking $120 per pound. What is the elasticity of demand for tuna between the price/quantity point the captain prefers and the one the first mate prefers? Is the demand between the two points from part (a) elastic or inelastic? Which price would result in higher sales revenue? Suppose the total amount of tuna they have to sell is 500 lbs. and all unsold fish will spoil overnight. Given this new information, what should the fishermen charge for their tuna? Assume they are trying to maximize revenue from selling their catch (since they already have incurred all the costs of catching the fish).
Demand for blue-fin tuna Price ($/lb) Quantity demanded (lbs) 30 700 60 600 90 500 120 400 150 300 180 200 A fishing boat just returned from the sea with its hold full of blue-fin tuna. The demand for blue-fin tuna is given in the table above. This boat is the only one that has blue-fin tuna for sale this day. The boat captain is considering asking $ 150 per pound of his tuna. His first mate disagrees and argues for asking $120 per pound. What is the elasticity of demand for tuna between the price/quantity point the captain prefers and the one the first mate prefers? Is the demand between the two points from part (a) elastic or inelastic? Which price would result in higher sales revenue? Suppose the total amount of tuna they have to sell is 500 lbs. and all unsold fish will spoil overnight. Given this new information, what should the fishermen charge for their tuna? Assume they are trying to maximize revenue from selling their catch (since they already have incurred all the costs of catching the fish).
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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- A fishing boat just returned from the sea with its hold full of blue-fin tuna. The demand for blue-fin tuna is given in the table above. This boat is the only one that has blue-fin tuna for sale this day. The boat captain is considering asking $ 150 per pound of his tuna. His first mate disagrees and argues for asking $120 per pound. What is the elasticity of demand for tuna between the price/quantity point the captain prefers and the one the first mate prefers?
- Is the demand between the two points from part (a) elastic or inelastic? Which price would result in higher sales revenue?
- Suppose the total amount of tuna they have to sell is 500 lbs. and all unsold fish will spoil overnight. Given this new information, what should the fishermen charge for their tuna? Assume they are trying to maximize revenue from selling their catch (since they already have incurred all the costs of catching the fish).
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