Why does the movie theater charge matinee customers a lower price than the night time customers?

Q: Retailers offer massive discounts on Cyber Monday. Does that mean that they price inefficiently…

A: The cost of production is the cost incurred in the process of production in the economy by a firm.…

Q: Two reasons why suppliers tend to supply less at lower prices

A: According to the law of supply there is a direct relationship between prices and quantity supplied…

Q: A theatre that sells a ticket for a comedy show. The ticket price is 3 Rials to have a seat and…

A: The firm sells the tickets to the consumers at the price of $3 per ticket. The cost of the snack…

Q: For an inferior good, the quantity demanded

A: Demand for inferior goods are depending upon consumer's income.

Q: What is the difference between rationing and economic queuing?

A: Economics refer to the study of allocation of scarce resources in the most optimal way when the…

Q: suppose for commodity X, the price elasticity of demand is 3 and the marginal cost is RM200. compute…

A: Given the price elasticity of demand (3) and marginal cost (200), the optimal price could be…

Q: Why does it not charge a price below the market price?

A: In a free market, equilibrium price and equilibrium quantity is determined by the forces of demand…

Q: What is a 'reservation-price curve' and why is different to the ordinary demand curve in many cases?

A: If a person only wants one unit of a good, the quantity desired is either one or zero, and the…

Q: Surpluses and shortages will not occur as long as price can move freely and act as a “rationing…

A: Excess of quantity supplied over quantity demanded results in surplus of the commodity and when…

Q: What would be the impact of introducing a minimum allowable price on a highly desirable product?

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

Q: If you are selling Mercedes-Benz cars in your showroom, what product "substitutes" are available to…

A: Substitutes are those goods that can be used in place of one another. Some goods are perfect…

Q: Which of the following was NOT something that is needed in order to be able to price discriminate?…

A: Price discrimination refers to the policy of a firm to charge different prices for the same product…

Q: Why do suppliers want to create more inelastic demand relationships in the products that they sell?

A: The markets are the place where the buyers and sellers of goods, services, investments, assets, and…

Q: Which products are for you not price sensitive, so that you would buy them even if the price…

A: Price sensitive refers to the situation where the changes in price leads to affect the quantity of…

Q: $$ P R E $$ +++++ Quantity Demanded

A: The demand graph for D1 is as follows.

Q: You are the curator of a museum.  The museum is running short of funds, so you decide to increase…

A: The decision of the curator of a museum will be based on the price elasticity of demand. The price…

Q: Organic eating is the new trend! What is the impact that supply and demand have on pricing?

A: The market is a place where the buyers and the sellers interacts with each other and the exchange of…

Q: Using a product (good or service) of your choice, provide an example of a situation where the demand…

A: Answer to the question is as follows:

Q: How can suppliers impact supply if they do not have the ability to drastically changes prices?

A: There are numerous ways in which suppliers can alter the supply (increase or reduce it) by not…

Q: If one gas station reduces its prices, must other gas stations match the price reduction?  Why or…

A: Price reduction of gas station:If one gas station decreases its price, then the other gas station…

Q: A change in the price of a product will cause: Select one: a. a shift in the supply curve b. a…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose for commodity X, the price elasticity of demand is 3 and the Marginal cost is RM 200.…

A: We use the inverse elasticity rule here.  Which is: (P - MC)/P = 1/elasticity So here we have (P -…

Q: Explain two factors that determine a buyer’s reservation price?

A: Reservation price is the maximum price that a consumer is willing to pay for ownership of a good or…

Q: .In economics, what a consumer is ready to pay minus what he actually pays, is termed as

A: To find : What is ready to pay minus actual pays.

Q: Suppose Brian is in the market for a used textbook and the campus bookstore is having a sale. If the…

A: Percentage change denotes a degree of change over time and is used in finance for a variety of…

Q: in 2015 the average price of housing was $326,000 and went up to almost $500,000 in the last year.…

A: Prices of houses goes up because there is a jump in housing demand, despite a limited amount of a…

Q: Does paperless ticketing benefit consumers more than traditional ticketing that allows tickets to be…

A: The paperless tickets are very nice concept and they can be of greater value to customers. It has…

Q: Explain two factors that determine a buyer’s reservation price? No more than 3 lines

A: A reservation price is a limit on the price of a good or service. It is usually the minimum price at…

Q: A friend of yours is considering two cell phone service providers. Provider A charges $100 per month…

A: To get the cost of an extra minute: With provider A:  There will not be any extra cost here as…

Q: if there is a decrease incomes of consumers,demand for head&shoulder shampoos will increase. True…

A: There are two types of goods in the market: (i) Normal goods: Goods that are positively related to…

Q: the demand equation for a product is q=1.5p+600, where q is the number of a products that can be…

A: A demand function expresses the relationship between quantity demanded of a good and its price. The…

Q: It’s increasingly clear that many postings on blogs and product reviews on Web sites are fake or are…

A: Information asymmetry refers to the phenomenon in which one of the two, or more parties involved in…

Q: Consider the supplier of a product that is an inferior good. For instance, an aluminum supplier for…

A: Inferior Goods: The inferior goods are those commodities that are inversely related to the income of…

Q: Please draw a demand curve. Label everything possible.

A: A demand curve is a graph that depicts the relationship between the price of a commodity and the…

Q: What makes the customer experience and loyalty of shoppers at Trader Joe’s unique?

A: Trader Joe is truly one of a kind. It has an unique approach to shopping as it tends to regularly…

Q: What Is Price Performance Measures?

A: Excluding other factors,products having a lower price/performance ratio are more desirable.

Q: What is the best price that producer must determine so as to achieve maximum revenue

A: Total Revenue is the product of the number of units sold multiplied by the price. Similarly, the…

Q: What Is Price Analysis?

A: Price Analysis refers to the analysis of response of consumer to the theoretical prices in research…

Q: If another phone service provider enters the market and forces Connecting U to drop the price of a…

A: Price elasticity of demand refers to the change in quantity demanded of a good in response to change…