If Clytemnestra consumes nothing but Purple Carpets and Eggs, and Carpets are an inferior good, then Eggs are cannot be determined (ambiguous) normal O inferior O complementary to carpets
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- Suppose a manufacturer of exercise equipmentsets a suggested price to the consumer of $395 fora particular piece of equipment to be competitivewith similar equipment. The manufacturer sells itsequipment to a sporting goods wholesaler who receives 25 percent of the selling price and a retailerwho receives 50 percent of the selling price. Whatdemand-oriented pricing approach is being used,and at what price will the manufacturer sell theequipment to the wholesaler?It costs $250 to produce an X-Box. We are trying todetermine the selling price for the X-Box. Prices between$200 and $400 are under consideration, with demand forprices of $200, $250, $350, and $400 given below. SupposeMSFT earns $10 in profit for each game that an X-Boxowner purchases. Determine the optimal price andassociated profit for the case in which an average X-Boxowner buys 10 games. Console Price ($) Demand200 2.00E06250 1.20E06350 6.00E05400 2.00E05Unit cost $250When trying to assess differences in her customers, Claire—the owner of Claire’s Rose Boutique—noticed a difference between the typical demand of her female versus her male customers. In particular, she found her female customers to be more price sensitive in general. After conducting some sales analysis, she determined that her female customers have the following demand curve for roses: QF = 24 − 2P. Here, QF is the quantity of roses demanded by a female customer and P is the price charged per rose. She determined that her male customers have the following demand curve for roses: QM = 27 − P. Here, QM is the quantity of roses demanded by a male customer. If two unaffiliated customers walk into her boutique, one male and one female, determine the demand curve for these two customers combined (i.e., what is their aggregate demand?).
- Genovia has experienced exceptional growth in recent years. Its GDP per capita (orIncome) has increased from around $30,000 to $50,000 in last 5 years. Over theperiod quantity demanded of personal cars has increased from 450,000 units per yearto 600,000 units. Quantity demanded of public transport, however, has declined from10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell whichproduct is a normal good and which one is inferior.In Autarka 2 amusement parks, Alfonso's wonderland and Bernice's rides there are 9600 people who like to visit an amusement park. Each of these consumers wants to visit one park once. The consumers' homes are evenly spaced across the island, and they each suffer a disutility of $24 for each kilometre they travel to reachan amusement park. With their current technology, it costs an amusement park $12 for each customer theyhost. At present, the equilibrium price for an amusement park ticket is $36, and each firmhas a profit of $115,200. This market is best modelled as Hotelling competition. Fixed costs should be neglected. Treat this market as a one-shot game. Do not consider repetition or associated phenomena such as collusion or predatory pricing. Assuming the profit function for Alfonso's Wonderland is Na(Pa,Pb) = 200(PaPb - Pb^2 + 30Pb -6Pa - 144) Find their best-response function in which their marginal cost is $6.itle A reliable 15-year-old babysitter can be a price maker within her own neighborhood. Suppose that th Description A reliable 15-year-old babysitter can be a price maker within her own neighborhood. Suppose that this babysitter wishes to implement a Multipart Pricing Plan. Customers who use her services less than L hours per month will pay a high price of PH dollars per hour. Customers who use her services more than L hours per month will still pay PH dollars for the first L hours, but for any additional hours they can then pay the lower price PL dollars per hour which she will generously set equal to her marginal cost. Assume that market demand is QD = 60 – 10P and her total costs are C = 3Q; so PL = $3 per hour. If she set her high price at $4 per hour, would her customers accept a limit of L = 24 hours per month in order to use the remainder of her services at a price of $3 an hour? Provide a labelled diagram and briefly explain. Suppose that this talented babysitter was…
- Make graph for demand curve of:1. When good x is normal and y is bad.2. When good one good is normal and other is neutral. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Suppose you are the managing director of a firm that produces two goods: A and B. The priceelasticity of demand for good A is 0.75 and for good B it is 2.5. The firm is experiencing seriouscash flow problems and you have to increase total revenue as soon as possible. If you were ina position to set the price for these two goods, what would be your pricing strategy for eachproduct?Suppose a perfectly competitive market for hotdog stands in New York City becomes monopolistically competitive when gourmet, discount, andethnic hot-dog retailers show up, making eachcart slightly different. If hot dogs from differentstands are now imperfect substitutes and there arenumerous carts in the city, compare the producerand consumer surplus and total social welfarebefore and after the change
- Only typed answer Uver is a new car ride service in town. The market demand function for Uver rides is estimated to be q = 148 × p −31u, where pu is the price of an Uver ride. Part 1. The absolute value of the price elasticity of demand for Uver rides is ________. Part 2 This demand function is a) always elastic b) always inelastic c) always unit elastic d) elastic at high prices, inelastic at low prices, and unit elastic at one point.Answer ASAP dont copy paste from other site Two goods brand A and brand B, have the following demand function: Qa = 800 - 0.09Pa2 + 0.08Pb2️Qb = 1500 + 0.04Pa2 - 0.03Pb2️Define:a. The elasticity of demand for each of these goodsb. The cross elasticity of demand for brand A against brand B.c. Determine the relationship between the demand for the product2. The transport authority of the city corporation areas has experimented with the fare structure for the city’s public bus system after the Covid-19 pandemic. The new system is fixed fare system in which a passenger may travel between two points in the city for the same fare. From the survey results, system analysis has determined an appropriate demand function, q=400− p 2 where Q equals to the average number of riders per hours and p equals the fare in taka a. Find the elasticity of demand when the fare is BDT 5 and when the fare is BDT 15. b. What impact does it have in the elasticity and on the revenue for the fare increase? Will the price increase help the transport authority to increase its revenue? c. Determine the fare which should be charged to maximize hourly bus for revenue. (Use graph) d. How many riders are expected per hour under this fare? e. What is the expected maximum annual revenue?