EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
Chapter 11, Problem 6SP
To determine
The reason why students and not other groups of customers offered discounted tickets.
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An advertisement in the local paper offers a "fully loaded" car that is only six months old and has only been driven 5,000 miles at a price that is 20 percent lower than the average selling price of a brand new car with the same options. Use precise economic terminology to explain whether this discount most likely reflects a "fantastic deal" or something else.
Suppose a firm sells two goods, Good A and Good B. Use the following information to Calculate the mark-up and the profit-maximizing price that the firm should change for Good B.
Profit maximizing price of Good A = $6000
MC at profit-maximizing level of output of Good A = $1200
MC at profit-maximizing level of output of Good B = $400
Total revenue of Good A = $80000
Total revenue of Good B = $68000
Rothschild index of Good B = 0.6
Price elasticity of the market demand for Good B = -1.2
Suppose Brian is in the market for a used textbook and the campus bookstore is having a sale. If the initial price of the used book is $75$75 and the discounted price is $50$50, what is the percentage change in the book price? Round your answer to two places after the decimal.
percentage change:
Chapter 11 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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