Pearson eText Economics -- Instant Access (Pearson+)
13th Edition
ISBN: 9780136879459
Author: Michael Parkin
Publisher: PEARSON+
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 19APA
(a)
To determine
Identify the values of
(b)
To determine
Identify the efficiency and inefficiency in the market.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
1. Your younger brother needs $600 to buy a new computer. He has opened a sandwich
stand to make the money he needs. Your father is paying for all of the ingredients. He
currently is charging $2 per sandwich, but he wants to adjust his price to earn the $600
faster. If you know that the demand for sandwich is elastic, what is your advice to him?
Explain.
The graph shows the demand curve for streaming subscriptions. The price of a
subscription is $15 a month.
Price (dollars per month)
30-
25-
20-
15-
10-
5-
5
10 15 20 25 30 35 40
Quantity (millions of streaming subscriptions)
What is the value of the 10 millionth subscription? What is the maximum
amount someone is willing to pay for the 30 millionth subscription?
The value of the 10 millionth subscription is
a month, and the
maximum amount someone is willing to pay for the 30 millionth subscription is
a month.
es
The table below depicts the demand for sunscreen at Daytona Beach.
Demand for Sunscreen
Price (dollars)
$20.00
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
Quantity (bottles) Total Revenue (dollars)
0
800
2,800
4,800
6,800
8,800
10,800
12,800
14,800
1222
Instructions: Enter your answer as a whole number. If you are entering a negative number
include a minus sign.
a. Fill in the total revenue column.
b. When the price of a bottle of sunscreen decreases from $18.00 a bottle to $16.00 a
bottle, what is the change in total revenue?
$
c. When the price of a bottle of sunscreen decreases from $14.00 a bottle to $10.00 a
bottle, what is the change in total revenue?
Chapter 5 Solutions
Pearson eText Economics -- Instant Access (Pearson+)
Ch. 5.1 - Prob. 1RQCh. 5.1 - Prob. 2RQCh. 5.1 - Prob. 3RQCh. 5.1 - Prob. 4RQCh. 5.2 - Prob. 1RQCh. 5.2 - Prob. 2RQCh. 5.2 - Prob. 3RQCh. 5.2 - Prob. 4RQCh. 5.2 - Prob. 5RQCh. 5.2 - Prob. 6RQ
Ch. 5.3 - Prob. 1RQCh. 5.3 - Prob. 2RQCh. 5.3 - Prob. 3RQCh. 5.4 - Prob. 1RQCh. 5.4 - Prob. 2RQCh. 5.4 - Prob. 3RQCh. 5.4 - Prob. 4RQCh. 5 - Prob. 1SPACh. 5 - Prob. 2SPACh. 5 - Prob. 3SPACh. 5 - Prob. 4SPACh. 5 - Prob. 5SPACh. 5 - Prob. 6SPACh. 5 - Prob. 7SPACh. 5 - Prob. 8SPACh. 5 - Prob. 9SPACh. 5 - Prob. 10SPACh. 5 - Prob. 11APACh. 5 - Prob. 12APACh. 5 - Prob. 13APACh. 5 - Prob. 14APACh. 5 - Prob. 15APACh. 5 - Prob. 16APACh. 5 - Prob. 17APACh. 5 - Prob. 18APACh. 5 - Prob. 19APACh. 5 - Prob. 20APACh. 5 - Prob. 21APACh. 5 - Prob. 22APACh. 5 - Prob. 23APACh. 5 - Prob. 24APACh. 5 - Prob. 25APACh. 5 - Prob. 26APACh. 5 - Prob. 27APA
Knowledge Booster
Similar questions
- Please help answer the following questionsarrow_forwardTyped plz and asap please provide me a quality solution take Care of plagiarismarrow_forwardThe following graph shows the daily demand curve for bikes in New York City. Compute the total revenue at various prices along the demand curve.arrow_forward
- A Movie theatre charges $20 for a ticket, with an average daily demand of 600 tickets. The theatre is running a loss and is considering changing its price to increase its revenue. The table below shows the demand schedule estimated by a consultant. Price Quantity of tickets demanded / day 19 620 20 21 600 580 Show all your calculations (either in the answer box below or in the file you will upload). Round your results to two decimal places. a. Using the midpoint method, calculate the percentage change in price and the percentage change in quantity if the movie theatre were to increase the price. b. ased on your answer in part (a) what is the price elasticity of demand? c. (- in order to increase its revenue, and how the elasticity estimate in (b) helps you reach your conclusion. Explain whether the movie theatre should increase or decrease its pricearrow_forwardhow rise in price affect the demand for personal computerarrow_forwardThe figure shows the demand curve for a PlayStation game. The price elasticity of demand when the price increases from $30 to $50 is ________. 5/3 1.67 1 3/5arrow_forward
- The following graph shows the daily demand curve for bikes in San Francisco. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 300 275 250 Total Revenue 225 200 175 150 125 100 75 50 25 Demand 3 9 12 15 18 21 24 27 30 33 36 QUANTITY (Bikes) PRICE (Dollars per bike) B.arrow_forwardEconomics What are two positive and negative externalities that would affect an online subscription box business? What are some solutions to correct those externalities?arrow_forwardThe following graph shows the daily demand curve for bikes in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 240 220 200 Total Revenue 180 160 140 120 100 80 60 40 20 Demand 9 18 27 36 45 54 63 72 81 90 99 108 QUANTITY (Bikes) PRICE (Dollars per bike)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage LearningEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc