Macmillan LearningCola DUDDies, L.e., cola encased in cuivie membranes, emmnaung the need for plastic Dotties. The patem once awards patents toideas it considers useful, novel, and non-obvious-products for which demand would be strong and inelastic. This leads to alarge consumer surplus, even when price is high. The office also seeks products that would likely not reach the market in theabsence of a guaranteed privileged market position for a period of time-products with a long time-to-market and high R&Dcosts. The patent office uses the level of fixed costs to apply the latter criterion.The patent office has estimated the demand and total cost curves for these products as follows:•gene predictor: QD = 241 -0.5P; TC = 1002 +20 + 1,000•⚫cola bubbles: QD = 184 P; TC = 902 +40 + 450meat printer: QD = 178-2P; TC = 802 + 40+ 120a. Calculate the consumer surplus for each product. (Round your answer to two decimal places, if possible.)CS gene predictor=SCS meat printer$CS cola bubbles= $b. In light of the consumer surplus associated with each product and the fixed costs involved in creating them, which twoproducts should the patent office grant patents for?meat printergene predictorcola bubbles

b.The patent office should grant patents for the gene predictor and the cola bubbles. This is…

Answered: Macmillan Learning Cola DUDDies, L.e.,…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 8P

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In Class, 10–25 Minutes for Teams For each of thefollowing products, determine at least three differentprices that might be charged. Then survey each of theindividuals within your group to find out how much ofeach product they would buy at each price point foreach of the products. For each product, calculate theprice elasticity of demand to determine whether thedemand is elastic or inelastic.a. Cheese pizzas per monthb. Movie tickets per monthc. Concert tickets per year
demand equations QD = 3550 - 20P supply equations QS = 1800 + 30P Calculate initial consumer surplus for the above firm.
Which of the following statements is true? a) If the PED for a product is less than zero, the demand for the product is said to be inelasticb) If the PED for a product is greater than zero, the demand for the product is said to be elasticc) The flatter the demand curve the more inelastic the demand for the productd) If the product is a necessity, then the demand tends to be more inelastic The Consumer Surplus is a) the difference between what a consumer wishes to buy and what he can afford to buyb) the difference between what the consumer plans to buy and what he actually buysc) the difference between what the consumers is willing to pay for a product and what he paysd) the difference between what the consumer is able to pay and what he actually pays
a. Assume that the elasticity of demand for Fanta is -0.5 while the elasticity of supply is 0.7. Assuming further that a tax of K10 is applied on each bottle of Fanta sold, how much of this will be borne by producers. b. Assume that the price of good X is K10 while that of good Y is K20. A consumer has allocated consumption between the two goods in such a way that the marginal utility of X is 15 utils and that of Y is 25 utils. Is this an optimal consumption bundle? If not, what should the consumer do to reach the optimum?
(2) In a fictitious town of Fruitlandia, 4 individuals each buy apricots following their individualdemands P = 6 – Q and 1 individual buys following individual demand P = 11 – Q, where Pdenotes the price and Q denotes the quantity. For the price range between $0 to $6, the town’saggregate demand is given by(a) P = 35 – 5Q(b) P = 17 – 2Q(c) P = (17/2) – (Q/2)(d) P = 7 – (Q/5)(e) None of the above
The demand for a good is given by QD = 800 – 0.5P. What is consumer surplus at P = $400? Group of answer choices $187,500. $781,000. $644,405. $720,000. $360,000.
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.
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 product
Taiwan is a major world supplier of semiconductor chips. A recent earthquake severely damagedthe production facilities of Taiwanese chip-producing companies, sharply reducing the amount of chipsthey could produce.a. Assume that the total revenue of a typical non-Taiwanese chip manufacturer rises due to theseevents. In terms of an elasticity, what must be true for this to happen? Illustrate the change in totalrevenue with a diagram, indicating the price effect and the quantity effect of the Taiwan earthquake onthis company’s total revenue.b. Now assume that the total revenue of a typical non-Taiwanese chip manufacturer falls due to theseevents. In terms of an elasticity, what must be true for this to happen? Illustrate the change in totalrevenue with a diagram, indicating the price effect and the quantity effect of the Taiwan earthquake onthis company’s total revenue.
What is the highest price consumers would be willing to pay forthis product? Also called the reservation price in the market.
The demand curve for product X is given by QXd = 380 − 5PX.a. Find the inverse demand curve. Instruction: Enter all values as integers, or if needed, as a decimal. PX = ____−____QXdInstructions: Enter your responses to the nearest penny (two decimal places).b. How much consumer surplus do consumers receive when Px = $55?c. How much consumer surplus do consumers receive when Px = $35?
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.

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