Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 15, Problem 15.2.10PA
To determine
Whether diamond profits forever.
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Students have asked these similar questions
On a graph, show the demand for Elixir water and Elixir Spring’s marginal revenue curve. What are Elixir’s profit-maximizing price, output, and economic profit?
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In 1916, Henry Ford was quoted as saying the following:
"There are men who will pay $360 for a car who would not pay $440. We had in round numbers
500,000 buyers of cars on the $440 basis, and I figure that on the $360 basis we can
increase sales to possibly 800,000 cars for the year - less profit on each car, but more cars,
more employment of labor, and in the end we get all the total profit we ought to make."
If Ford's estimate as correct, what was the price elasticity of demand for his cars?
By how much did total revenue increase?
7
Using the data from question 6, above, write the demand curve equation for Henry Ford's
cars.
8
Using the demand curve equation from question 7, build a graphic to sell Ford cars to the
public in 1916.
6
In 1916, Henry Ford was quoted as saying the following:
"There are men who will pay $360 for a car who would not pay $440. We had in round numbers
500,000 buyers of cars on the $440 basis, and I figure that on the $360 basis we can
increase sales to possibly 800,000 cars for the year - less profit on each car, but more cars,
more employment of labor, and in the end we get all the total profit we ought to make."
If Ford's estimate as correct, what was the price elasticity of demand for his cars?
By how much did total revenue increase?
Chapter 15 Solutions
Microeconomics (7th Edition)
Ch. 15 - Prob. 15.1.1RQCh. 15 - Prob. 15.1.2RQCh. 15 - Prob. 15.1.3PACh. 15 - Prob. 15.1.4PACh. 15 - Prob. 15.1.5PACh. 15 - Prob. 15.1.6PACh. 15 - Prob. 15.2.1RQCh. 15 - Prob. 15.2.2RQCh. 15 - Prob. 15.2.3RQCh. 15 - Prob. 15.2.4RQ
Ch. 15 - Prob. 15.2.5PACh. 15 - Prob. 15.2.6PACh. 15 - Prob. 15.2.7PACh. 15 - Prob. 15.2.8PACh. 15 - Prob. 15.2.9PACh. 15 - Prob. 15.2.10PACh. 15 - Prob. 15.2.11PACh. 15 - Prob. 15.2.12PACh. 15 - Prob. 15.2.13PACh. 15 - Prob. 15.3.1RQCh. 15 - Prob. 15.3.2RQCh. 15 - Prob. 15.3.3RQCh. 15 - Prob. 15.3.4PACh. 15 - Prob. 15.3.5PACh. 15 - Prob. 15.3.6PACh. 15 - Prob. 15.3.7PACh. 15 - Prob. 15.3.8PACh. 15 - Prob. 15.3.9PACh. 15 - Prob. 15.3.10PACh. 15 - Prob. 15.4.1RQCh. 15 - Prob. 15.4.2RQCh. 15 - Prob. 15.4.3PACh. 15 - Prob. 15.4.4PACh. 15 - Prob. 15.4.5PACh. 15 - Prob. 15.4.6PACh. 15 - Prob. 15.4.7PACh. 15 - Prob. 15.5.1RQCh. 15 - Prob. 15.5.2RQCh. 15 - Prob. 15.5.3RQCh. 15 - Prob. 15.5.4PACh. 15 - Prob. 15.5.5PACh. 15 - Prob. 15.5.6PACh. 15 - Prob. 15.5.7PACh. 15 - Prob. 15.5.8PACh. 15 - Prob. 15.5.9PACh. 15 - Prob. 15.5.10PACh. 15 - Prob. 15.5.11PACh. 15 - Prob. 15.5.12PACh. 15 - Prob. 15.5.13PACh. 15 - Prob. 15.1CTECh. 15 - Prob. 15.2CTECh. 15 - Prob. 15.3CTE
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