Principles of Microeconomics (12th Edition)
12th Edition
ISBN: 9780134081199
Author: CASE
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 3.3P
To determine
Increase in prices.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In Southeast Asia, Grab, the Singapore-based ride-hailing company, forced Uber out of the region in 2018 and acquired its local operations. A few months later, it expanded its app to offer its 130 million users not only food delivery and travel booking, but also financial and other services. These efforts helped Grab hit $1 billion in revenue in 2018 and attract more than $3 billion in fresh funding to expand. Later this year, it’ll add healthcare services from Ping An, the Chinese digital health giant. To Uber, Grab is a typical example of _________. *
bargaining power of suppliers to the industry
threat of substitute products or services
rivalry among companies competing in the industry
threat of new entrants to the industry
provide an economic explanation for the provided text below
While on vacation, you go to a miniature golf course on a weekday and notice no other customers there while you golf. Why do you think a miniature golf course would stay open during the week when it seems like the revenue from so few customers could not possibly cover the costs of running the golf course? What is an example of another business that stays open even when it's slow, and their revenue does not seem like it could cover their costs?
make sure to use concepts from either of the following topics (minimum of two from the list provided rest may be from own knowledge): externalities, public goods and common resources, understanding costs, business behaviour and businesses in competitive markets.
For the three-part question that follows, provide your answer to each question in the given workspace. Identify each part with a coordinating response. Be sure to clearly label each part of your response as Part A, Part B, and Part C.Suppose you are saving your money to pay for a vacation for your family. So far, you have $400 saved. You plan on saving more each month so you can pay for the vacation at the end of the year. Assume that you save 10%more each month than the previous month.Part A: Write a formula that would show the amount you will have saved after 1 year.Part B: If the vacation costs a total of $8,000, will you be able to pay for it after 1 year?Part C: Explain why or why not. Show your work to support your answer.
Chapter 9 Solutions
Principles of Microeconomics (12th Edition)
Knowledge Booster
Similar questions
- Julia runs her own business. Historically, she knows that when she sends emails to customers that 40 percent of those emails are never opened, 40 percent are opened but with low interaction, and 20 percent are opened and customers follow up on the links in the emails. Julia is able to link customer spending in the following days to data on emails. She gets $0 from customers that did not open emails, $50 from customers who opened emails with low interaction, and $100 from customers who opened the email and followed up on the links. What is the expected value of an email? 20 24 36 40arrow_forwardSuppose the campus dining facility at Mines Market offers weekend meals for the Mines community. The following table shows your willingness to pay for each additional meal during a typical weekend. Meal Willingness to Pay for this Meal 1 $12 2 8 3 6 4 4 5 2 6 0 There are two ways to purchase meals. You may either pay $10 for each meal or you may pay a fixed fee and eat as many meals as you like during the weekend. What is the most that you would be willing to pay for a meal plan that allows you to eat unlimited meals during a weekend at no cost for each meal?arrow_forwardEconomists typically assume that when making decisions, the owners of firms wish to maximize A. production efficiency B. short-term accounting profits. C. sales revenues. D. long-term economic profits.arrow_forward
- Need asap... My husband is sick of me drinking Coke every day. He tells me that if I give up drinking it for 6 months, he'll buy me a new car. I want a new car, so I agree to the deal, and I don't drink any Coke during that time. At the end of the six months, I tell him it's time to go get my new car. He balks and says no, explaining that not drinking Coke has actually been beneficial for me, so there's no consideration for the deal. Is he right? Explain.arrow_forwardQ. In an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paper's publisher rejected the idea, saying that circulation could drop sharply after a price increase, citing the Wall Street Journal's experience after it increased its price to 75 cents. What implicit assumptions are the publisher and the analyst making about price elasticity? Thank you for your answer.arrow_forwardWe R' Write currently purchases the wood used to make their pencils, the rubber used to make erasers for their pencils, and the lead for the pencils from other firms. However, We R' Write is considering purchasing these firms so they can personally produce all the components used for making pencils. As an economist, what would you call the current way We R' Write is acquiring the products needed to make their pencils (purchasing from other firms)? What benefits and problems could We R' Write have with the current way of doing business? As an economist, what would you call We R' Write's proposal to purchase the firms that make the pencil components? What benefits and problems could We R' Write have concerning the purchase of these other firms?arrow_forward
- Your health club offers you “free” parking and unlimited use of its facilities seven days a week if you buy an annual membership for $3,650, to be paid at the time the membership is taken out. Otherwise, you buy daily passes for $10 per day for the use of the facilities, plus pay for your parking. Is your parking truly “free” if you buy the annual membership? Explain. A newspaper report states that chocolate production is failing to keep up with worldwide consumption and could fall behind by 2 million metric tons annually by 2030. Does this create an excess demand or excess supply situation? Explain how it will affect the price of chocolates in the future. The news report further goes on and states that adverse weather and fungal disease are partly to blame. Explain how that affects the supply curve. How will your answer in b. above change if innovation of disease resistant and higher yielding cocoa trees replace their traditional counterparts? Read the 2018 article…arrow_forwardYou own a company that produces widgets. You currently produce 100 widgets; each widget sells for $100 and costs $80 to produce. You are considering increasing your company's production by one unit, upping the total to 101 widgets. At this level of production, total revenue will increase to $10,100, and total costs will increase to $8,120. Based on the given information, and considering you are a good entrepreneur and economist who wants to maximize profit, you should... A. Sell less than 100 units B. Not produce unit 101 C. Produce unit 101 D. Produce 150 unitsarrow_forwardAfter viewing the film Back to the Future, Matt takes a nap but has a disturbing dream. He sees himself 50 years into the future, and his town has become a large city. Dozens of computer businesses exist in the city. However, he is still selling only 1200 computers a year at his store. He observes that computer prices are now $900 and his ATC is still $1000. His AVC is $750 and his AFC is $250. In a panic, Matt closes his store immediately rather than continue to lose money. Did he do the right thing? Why, or why not? Illustrate numerically to support your answer. In desperation, Matt considers raising his price back to the $1,300 that he charged in the “good old days.” Without any more information than the fact that computers now sell in a perfectly competitive market, can you tell Matt what the outcome of his price change will be? Perplexed about whether his proposed action is the right approach and uncertain about your advice, Matt calls in a consultant who tells him that he…arrow_forward
- In September 2020, Ms. Sarah arranged health insurance. In 2021, Ms. Sarah made a claim for the costs of an MRI and a cortisone injection, because she had a cyst on the left side of her spine. The insurer requested Sarah's medical notes and found she hadn’t disclosed 2 previous spinal injuries from 2013 and 2016. Ms. Sarah didn't inform her insurance company the full details of her medical history and she said that she wasn't aware that she has to disclose her health situation to the insurance company. Therefore, she Made a claim to her insurance company to cover these bills. Required: Determine whether she can claim the hospital expenses under her insurance policy? And justify your answer with reasonable justifications?arrow_forwardWhich of the following is a typical concept discussed in Microeconomics and not Macroeconomics? 1. Profit maximization in a monopolistically competitive industry 2. Causes of our country's unemployment 3. The average increase in prices of all goods and services 4. The total amount of goods and services produced in a nationarrow_forwardIn an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paper’s publisher rejected the idea, saying that circulation could drop sharply after a price increase, citing The Wall Street Journal’s experience after it increased its price to 75 cents. 1- What implicit assumptions are the publisher and the analyst making about price elasticity?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning