If the demand function of a product is p - 0.5x + 90 where p denotes unit pric and x shows quantity, determines the selling price, at what price level is the revenue maximized? 43 90 135
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- Wonopoly and natural resource prices Suppose that a firm is the sole owner of a stock of a natural resource. a. How should the analysis of the maximization of the discounted profits from selling this resource (Equation 17.63 be modified to take this fact into account? b. Suppose that the demand for the resource in question had a constant elasticity form q(t)=a[p(t)]b . How would this change the price dynamics shown in Equation 17.67? c. How would the answer to Problem 17.7 be changed if the entire crude oil supply were owned by a single firm?Please no written by hand solution Instead of assuming a linear demand curve, suppose we assume that demand is char- acterized by the following demand function qD = 13.572P −1.5 (a) Suppose the current price is $5. What is the price elasticity of demand at this price? (b) Over what range of prices is demand elastic? Inelastic? Unit elastic?Suppose a firm has the following demand equation: Q(P) = 100 - 30P + 4A Where Q(P) = quantity demanded at the market price P P = product price (in S) A = advertising spending (in $) Assume for the following questions that initial values of P = $2.00 and A = $1.5,000 No 1--- Suppose the firm dropped the price to $2.60. Would this be beneficial. Explain. (Hint: investigating the link between revenue and price elasticity of demand is the best approach -for this question.) No 2--- Supposed the firm raised the price to $5.00 while increasing its advertising expenditure by $200. Would this be beneficial? REQUIRED 2B: a--- Construct the demand schedules (in a table) of Q, P and A (before and after the increase in advertising spending) -using Excel (detailed steps are optional b----Graph the demand curves (before and after the increasing in advertising spending) -using Excel (details of steps are required. no chatgpt or any ai tool and should be in excel with details of formula
- The following estimates have been obtained for the market demand for cereal In Q= 9.01- 0.68 In P+0.75In A-1.3M, where Q is the quantity of cereal,P is the price of cereal,A is the level of adverstising, and M is income. Based on this information,determine the effect on the consumption of cereal of : a: A 5 percent reduction in the price of cereal. b: A 4 percent increase in income. c: A 20 percent reduction in cereal advertising.a)Use the following demand and supply functions to calculate the elasticity of demand at market equilibrium QD=-53P+355 Qs=32P+65 Round your answer to the nearest hundredthb)Jack is looking to determine the difference in the cost of capital of debt between two debt issuers: Issuer One is selling the bond at par, with a face value of $1000, and semi-annual coupon payments of $60 Issuer Two is selling his bond at par, with a face value of $1100 and coupon payments of $50 every six months. However, Issuer Two must pay issuing expenses of $40 per bond, and a discount of $20. Both bonds term to maturities are expected to be 10 years. Help Jack to determine the difference in the cost of capital between these two bonds? Assume a tax rate of 40% A 2.34% B 0.02% C 6.34% D 7.37% E 1.31%The demand for Amazon 's Kindle e-reader can be approximated by q(p)=21e−0.01pmillionunitsperyear(50≤p≤400), where p is the price charged by Amazon. Obtain a formula for price elasticity of demand E, and calculate its value at the two endpoints of the given range of prices. Is the price that would maximize annual revenue within the range of prices shown? How would you know this without calculating that price?
- Ll.47. Market demand is given as Qd = 750 – 2P. Market supply is given as Qs = 3P - 15. What is the point elasticity of demand at the equilibrium price, and if the firm could change its price, would the firm increase or decrease the price in order to increase total revenue? a. 5.80, the firm will decrease the price b. 0.69, the firm will decrease the price c. 0.69, the firm will increase the price d. 5.80, theThe estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 95ep − 3p2⁄2, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a)Determine the price elasticity of demand E when the retail price is set at ¥300. E = Interpret your answer. The demand is going by % per 1% increase in price at that price level. Thus, a large price ___ is advised. (b)At what price will revenue be a maximum? (Round your answer to the nearest integer.) yen (c)Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) paint-by-number sets per monthConsider the following demand and supply function of product ZT: Qd = 25 - 1.25 P Qs = -9 + 3 P Note: Determine the equilibrium point first to answer the following question. 9. What is the elasticity of demand at the original equilibrium point? Use a number, 2 decimal values, no commas, no space, no signs. * 10. How much is the change in the price for the producer, when additional sales tax is 0.85 per unit? Use a number, 2 decimal values, no commas, no space, no signs.
- the demand for boneless chicken breast, in dollars per pound, is given by q=-0.7p+5, where p represents the price per pound and q represents the average number of pounds purchased per week per customer. Determine the price at which the demand for boneless chicken breast is unit elastc.Px = 666 -0.5Qx - 2Qy Py = 484.5 -1.5Qy - 0.25Qx MCx = 20 +2Qx MCy = 4 + Qy What are the profit-maximizing prices for the two goods? 1). Px = $375, Py = $284 2). Px = $423, Py = $712 3). Px = $166, Py = 324 4). Px = 481, Py = 588 [ i will upvotes 5]Determine the point elasticity η of the demand equation 3p^2q = 5000 + 2000p^2, when p = 50. ?
