The demand for monorail service on the Utarek monorail, which links the three urbynes (or districts) of Utarek on Mars, can be approximated by qlp) = 5.5 + 50 million rides per day (3 sps 8), where p is the cost per ride in zonars (7).t (a) Graph the demand function. q (p) 30 9(p) q(p) 3야 30 25 25 25 20 20 20 15 15 15 10 10 10 5. 5 8. q(p) 30 25 20 15 10 (b) What is the result on demand if the cost per ride is decreased from 7.00 to 7 4.007 (Round your answers to one decimal place.) Since q(7) = | ]and q(4) = [ ], the demand -Select--- : (c) If the demand function is extrapolated, what does its graph suggest will be the effect of increasing the price to extremely large values? Ridership decreases toward 5.5 million rides per day. O Ridership stabilizes at 50 million rides per day. O Ridership increases toward 5.5 million rides per day. O Ridership decreases toward 50 million rides per day. O Ridership increases toward 50 million rides per day.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14: Pricing Techniques And Analysis
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The demand for monorail service on the Utarek monorail, which links the three urbynes (or districts) of Utarek on Mars, can be approximated by
qlp) = 5.5 + 50 million rides per day (3 sps 8),
where p is the cost per ride in zonars (7).t
(a) Graph the demand function.
q (p)
30
9(p)
q(p)
3야
30
25
25
25
20
20
20
15
15
15
10
10
10
5.
5
8.
q(p)
30
25
20
15
10
(b) What is the result on demand if the cost per ride is decreased from 7.00 to 7 4.007 (Round your answers to one decimal place.)
Since q(7) = |
]and q(4) = [
], the demand -Select--- :
(c) If the demand function is extrapolated, what does its graph suggest will be the effect of increasing the price to extremely large values?
Ridership decreases toward 5.5 million rides per day.
O Ridership stabilizes at 50 million rides per day.
O Ridership increases toward 5.5 million rides per day.
O Ridership decreases toward 50 million rides per day.
O Ridership increases toward 50 million rides per day.
Transcribed Image Text:The demand for monorail service on the Utarek monorail, which links the three urbynes (or districts) of Utarek on Mars, can be approximated by qlp) = 5.5 + 50 million rides per day (3 sps 8), where p is the cost per ride in zonars (7).t (a) Graph the demand function. q (p) 30 9(p) q(p) 3야 30 25 25 25 20 20 20 15 15 15 10 10 10 5. 5 8. q(p) 30 25 20 15 10 (b) What is the result on demand if the cost per ride is decreased from 7.00 to 7 4.007 (Round your answers to one decimal place.) Since q(7) = | ]and q(4) = [ ], the demand -Select--- : (c) If the demand function is extrapolated, what does its graph suggest will be the effect of increasing the price to extremely large values? Ridership decreases toward 5.5 million rides per day. O Ridership stabilizes at 50 million rides per day. O Ridership increases toward 5.5 million rides per day. O Ridership decreases toward 50 million rides per day. O Ridership increases toward 50 million rides per day.
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