If the price charged for a candy bar is p(x) cents, then x thousand candy bars will be sold in a certain city, where p(x) = 157 – 10 a. Find an expression for the total revenue from the sale of x thousand candy bars. b. Find the value of x that leads to maximum revenue. c. Find the maximum revenue. а. R(x) 3D b. The x-value that leads to the maximum revenue is c. The maximum revenue, in dollars, is $
Q: Suppose the demand function of a product is given by q = 14-5/p. 1 1, the demand is elastic, and…
A: Demand Function is the equation that shows how the quantity of a good demanded by the consumers in a…
Q: A. Is product X a normal or an inferior product? Justify. B. How are product X and product Y related…
A: The supply curve shows the positive relationship between the price and quantity supplied. It means…
Q: In advertising, a business is not only making consumers aware of the existence of the product and…
A: Income elasticity is a parameter that measures how the demand for a service fluctuates to a change…
Q: Supply and Demand Q2 The demand curve for tickets at an amusement park is:…
A: Answer - Given in the question - Q = D(p) = 1900 - 45p , P> 0 .............(1) Inverse Demand -…
Q: Dogo, a town on the Japanese island of Shikoku, is a renowned hot springs resort that hosts two…
A: Externalities refer to the cost or benefit of an economic transaction, imposed on a third party that…
Q: The demand for good X is estimated to be Qxd = 10, 000 − 4Px + 5Py+ 2M + Ax, where Px is the price…
A: The demand of the good can be used to estimate the rate of change as well as the possible changes in…
Q: A downtown bar serves a drink that UCSB students love. The profit-maximizing owner knows that any…
A: Student demand, p = 14-q Non-student demand, p = 6-q Large package of 12 drinks Small package of 4…
Q: Marcella owns a sandwich shop. She decides to charge different prices to groups of customers. She…
A: The lower the elasticity of demand, the higher would be the final price paid by customer
Q: Imagine the market for Good X has a demand function of QDX = 100 – 2PX – 4PY + 0.05M + 0.1AX and a…
A: The equilibrium price is the price where the quantity demanded and quantity supplied is equal and…
Q: Consider the demand function for bicycles in South Florida: Q = 24 + 3Y – 1.2P…
A: Q = 24 + 3Y – 1.2P where: Q is quantity demanded, Y is monthly income, and P is the price per unit.…
Q: snip
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Suppose the average age of Stanford Alumni increased at the same time the smaller stadium was built…
A: The income elasticity would result in the ratio of the percentage change in the demand because of…
Q: D. Suppose the demand for X is given by Q, = 100 – 2Px+ 4Py + 10M + 2A, where Px represents the…
A: The demand for the good depends on the price of good, income, price of related goods and…
Q: h marginal cost at the initial elasticity of -2. What should the promotional price be when the…
A: Price elasticity of demand is a measurement of the change in the consumption of a product with…
Q: In the town of "One Horse" there is one movie theater. Two groups of consumers, adults (A) and…
A: “Since you have posted multiple questions, as per the guidelines we would only be able to solve the…
Q: Gridiron University is a North Carolina state university that wants to attract both undergraduate…
A: Maximum Revenue Maximum revenue is the prices of goods and services which may cause the maximum…
Q: The demand for soft drinks is given by the equation: Q = 100 − 2P where P pence is the price per can…
A: Revenue is maximised at a point where marginal revenue is equal to 0. Marginal revenue is calculated…
Q: Rational ignorance results from: A) People deciding to over‐search for price information B)…
A: Rational behavior is the decision-making process based on making choices from different options.
Q: At the Super Bowl, the demand for game-day t-shirts is given by p = 50 – 4 In (t1) where p is the…
A: We have demand function, p=50-4lnx100+1 Here, p = price of the shirt and x = Quantity for the shirt…
Q: Why do the prices offered to business customers differ from those offered to "individuals"? a.…
A: In a market, firms have an opportunity to use price discrimination between business customers and…
Q: A downtown bar serves a drink that UCSB students love. The profit-maximizing owner knows that any…
A: Student demand, p = 14-q Non-student demand, p = 6-q Large package of 12 drinks Small package of 4…
Q: Mobile internet provider knows that there are two types of users with 1000 users of each type. Type…
A: Given that; There are two type of users Type A and Type B For Type A q1=q(p)=100-2p For Type B…
Q: The price p (in dollars) and the quantity x sold of a certain product obey the demand equation. x -…
A: Given: x = -7p + 210 Total revenue is the total income earn by the firm after selling its goods.…
Q: Maximizing Revenue The price p (in dollars) and the quantity x sold of a certain product obey the…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: For the demand function Q = 700 – 7P + 3A +0.008Y2 where P is the price of the good, A is the…
A: Positive cross price elaticity implies that goods are substitutes and positive income elaticity…
Q: Q= 700 7P+3A³ +0.008Y? %3D where P is the price of the good, A is the alternative price of an…
A: Since you have posted a question with multiple subparts, we have answered the first three subparts…
Q: The monopoly can verify consumers to decide which market they belong to so that it charge different…
A: Monopoly is a situation where there is a single seller in the market. In conventional economic…
Q: An end-of-aisle price promotion changes the price elasticity of a good from −4 to −5. Suppose the…
A: Elasticity of Goods: It refers to the responsiveness of the quantity demanded of the goods and…
Q: Suppose the demand function of a product is given by q = 14-5 p.1 1, the demand is elastic, and the…
A: The price elasticity of demand, also known as demand elasticity, is defined as the percentage change…
Q: A downtown bar serves a drink that UCSB students love. The profit-maximizing owner knows that any…
A: Demand function refers to the relation between the price and quantity that shows how individuals or…
Q: Price, dollars per pound Quantity, thousand pounds per day 1.90 1.35 1.25 1.20 0.95 0.85 0.73 1.5 22…
A: The demand shows the negative relationship between the price level and quantity demand. It is…
Q: An end-of-aisle price promotion changes the price elasticity of a good from -2 to -3. Suppose the…
A: The marginal revenue (MR) conveys the increment in business income from selling an additional unit…
Q: A discount shoe store always runs a ’buy one, get one free (limit one free pair per customer)’…
A: a) Opportunity cost of a commodity is what an individual gives up to get that commodity. In the…
Q: If the demand function of a product is p - 0.5x + 90 where p denotes unit pric and x shows quantity,…
A: Demand function: p = -0.5x +90 Total revenue = Price* Quantity Here, Price = p and Quantity = x So…
Q: There are two types of consumers in Melbourne: students and non-students. The student population is…
A: Given; Student population= 10 Demand of each student for printing paper; Q=1-P Aggregate demand of…
Q: For the demand function Q = 700 – 7P+3A³ + 0.008Y2 where P is the price of the good, A is the…
A: Q = 700-7P+3A3+0.008Y2 3. Q = 700 - 7(6) + 3(3)3 + 0.008(90)2 Q = 700 - 42 - 27 + 64.8 Q = 695.8 ep…
Q: Mobile internet provider knows that there are two types of users with 1000 users of each type. Type…
A: Total demand is communicated as the aggregate sum of total money spent on those labor and products…
Q: Under what assumption is the equilibrium in a differentiated goods market Pareto inefficien
A: Pareto efficiency refers to the situation where if there is any change occurs, it is not possible to…
Q: Suppose that the total revenue received by a company selling basketballs is $960 when the price is…
A: Elasticity of demand refers to how responsive a good's quantity demanded is to changes in any of its…
Q: There are two brands of cigarettes X, Y. The demand for each is as follows: Qx = 80 - 2p Qy = 60…
A: a) The horizontal axis shows the quantity of a pack of cigarette. The vertical axis shows the price…
Q: The price p (in dollars) and the quantity q sold of a certain product obey the demand equation q −…
A: Revenue is the product of price and quantity. To get revenue function, first derive the inverse…
Q: ify the following statement as true or false. Justify the answer. The justification is more…
A: Utility function shows the functional relationship between the consumption goods and utility.
Q: All of the following are true, except
A: Price is defined as the monetary value of all goods and services which are established during a…
Q: Suppose the demand function of a product is given by q = 14-5/p.1 1, the demand is elastic, and the…
A: Demand function : q = 14 - 5p31<p<10 p = 8
Q: A medical device manufacturer sells its sterilization equipment in a market with an inverse demand…
A: Monopoly refers to the market in which there is one seller who sells a heterogeneous product at…
Q: For each of the following situations, state whether total revenue received by the seller increases,…
A: a)Increases b)Decreases
Q: . American Girl doll has an inverse demand curve of P= 150 - 0.25Q, where Q measures the quantity of…
A: A firm will maximise profit at a point where marginal revenue is equal to marginal cost and price is…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- P Q $156.00 9344 $151.32 10040 $146.64 10544 $141.96 11047 $137.28 11483 $127.92 11691 $123.24 11753 A. Use your first demand function to determine an equation for TR and MR as a function of Q, and create a graph of P and MR on the vertical and Q on the horizontal axis. B. What is the total-revenue maximizing price and quantity, and how much revenue is earned there? (Round your price to the nearest cent, your quantity to the nearest whole unit, and your TR to the nearest dollar.) Compare that to the TR when P= $127.92 and P= $149.00In a small college town there is only one movie theater. In a given month, if the theater is open, the owners have to pay a fixed amount of $6,000 for the films, ushers, etc., regardless of how many people come to the movies. For simplicity, assume that if the theater is closed, its costs are zero. The demand function for movie tickets in the town is characterized by ??= 45−QT/60 a. Find the profit-maximizing price and quantity of movie tickets, and indicate them on the graph above. How much would the theater make in profits? b. Suppose the local government implements a property tax, so that each month the theater now must pay a lump sum tax of $700. What will be the price and quantity of movie tickets under this tax?There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student's demand of printing paper is Qs, = 1-p, for p<1. The non-student population is 40, and each non-student's demand of printing paper is Qa =3-p. for p <3. Suppose OfficeMax is the only seller of printing paper in Melboume Assume zero production cost. a. Suppose OfficeMax offers a student discount, d, so students only pay d*p and non-students pay the full price, What are the profit maximizing price p and discount d? b. Suppose OfficeMax cannot offer student discounts, and every customer has to pay the same price p. What is the total demand if p 1.5? What is the total demand if p=0.5? c. Suppose OfficeMax cannot offer student discounts, and every customer has to pay the same price p. Derive the aggregate demand curve (for both students and non-students), and illustrate it in a diagram.
- There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student's demand of printing paper is Qs, = 1-p, for p<1. The non-student population is 40, and each non-student's demand of printing paper is Qa =3-p. for p <3. Suppose OfficeMax is the only seller of printing paper in Melboume Assume zero production cost. a. Suppose OfficeMax offers a student discount, d, so students only pay d*p and non-students pay the full price, What are the profit maximizing price p and discount d? b. What is the deadweight loss in Question 2.1? What is the deadweight loss in part a? c. The monopolist OfficeMax claims that the student discount improves social welfare Is it true? Explain why it is (not) trueSuppose in the market for tickets, Demand is given by Qd=100,000-100P. Suppose producers can practice 1st degree price discrimination. What will the consumer surplus be?the price in p (in dollars) and the quantity in q sold of a certain product obey the equation q=800-20p a express the revenue R as a function of q b. what is the revenue if 20 units are sold ? c. what quantity q maximises revenue ? what is the maximum revenue ? d. what price should the company charge to maximize revenue e. what price should the company charge to earn at least $3500?
- A discount shoe store always runs a ’buy one, get one free (limit one free pair per customer)’ campaign. A customer asked a clerk, if he would sell her one pair for half price. The clerk answered, ”I’m sorry, I can’t do that.” but when the customer decided to leave the store, the clerk hastily offered, “However, I think I can give you a 40% discount on any pair in the store.” Assuming the consumer has $200 to spend on shoes (X) or all other goods (Y ), and that shoes cost $100 per pair: a. Illustrate the consumer’s opportunity set with the ”buy one, get one free” deal and with a 50 percent discount. b. Why was the 40 percent discount offered only after the consumer rejected the ”buy one, get one free” deal and started to leave the store? c. Why was the clerk willing to offer a ”buy one, get one free” deal, but unwilling to sell a pair of shoes for half price?There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student's demand of printing paper is Qs, = 1-p, for p<1. The non-student population is 40, and each non-student's demand of printing paper is Qa =3-p. for p <3. Suppose OfficeMax is the only seller of printing paper in Melboume Assume zero production cost. a. OfficeMax introduces printing paper in smaller packages targeting the students. The non-students are willing to pay 5 for a smaller package and 7 for a standard package, and the students are willing to pay 3 for a smaller package and 4 for a standard package. If a consumer does not purchase, her utility is zero. Find all the prices, Ps, for a smaller package and Pn, for a standard package, so that the students choose the smaller packages and the non-students choose the standard ones. b. What is the profit maximizing prices Ps, and Pn? Given those prices, what is a student's utility from purchasing a smaller…Alex owns a mineral water spring that provides him with an unlimited supply of water at no cost. He can bottle the water at a cost of $2 per litre. Alex's neighbour, Scrooge, found a mineral spring of his own, that provides him with the same water quality as that of Alex. It also costs him $2 per litre to get his water out of the ground and bottle it. The inverse demand curve for mineral water is given by P(Q)=20−0.2Q, where P is the price per litre and Q is the number of litres sold. How many litres will each of them sell in the Cournot equilibrium?
- 1.) GM’s Food Shops has completed a study of weekly demand for its “new-fashioned” tacos in 53 regional markets. The study revealed that where Q is the number of tacos sold per store per week, A is the level of local advertising expenditure, Pop denotes the local population (in thousands), and Pr is the average taco price of local competitors. For the typical GM’s outlet, P = P1.50, A = P1,000, Pop = 40, and Pr = P1. Q = 400 - 1,200P + 0.8A + 55Pop + 800Pr Estimate the weekly sales for the typical GM’s outlet. Determine the equilibrium price and equilibrium quantity, if supply is Qs = 700 + 1,200P considering the general demand function of GM’s outlet Should GM raise its taco prices? Why or why not?The price p (in dollars) and the quantity q sold of a certain product obey the demand equation q p = − 800 20 and 0 40 p (i) Express the revenue R as a function of q. (ii) What is the revenue if 20 units are sold? (iii) What quantity q maximizes revenue? What is the maximum revenue? (iv) What price should the company charge to maximize revenue? (v) What price should the company charge to earn at least $3500 in revenue? Please answer with step by step process1) The quantities demanded, q1 and q2, of two products depend on their unit prices, p1 and p2, as follows q1 = 135 − 2p1 − p2, q2 = 205 − p1 − 3p2. The total revenue is defined as R = q1p1 + q2p2. A. How should the prices be set to generate the maximum possible revenue? Apply the Second Derivative Test to show that your answer yields the maximum and not the minimum revenue. B. What is the maximum possible revenue and what are the corresponding values of q1 and q2? 2) Find the maximum and minimum values of the function f(x, y, z) = ax + by + cz, where a, b, c are three positive numbers, on the unit sphere x^2 + y^2 + z^2 = 1.