22) Assume your demand for Tango remains constant, but the price of Tango increases. Your consumer surplus A) increases. B) decreases. C) remains constant. D) may increase or decrease depending on the amount of the price decrease
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22) Assume your demand for Tango remains constant, but the
- A) increases.
- B) decreases.
- C) remains constant.
- D) may increase or decrease depending on the amount of the price decrease
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- If the supply schedule for tin is relatively inelastic to price changes , a decrease in the demand schedule for tin-will cause a: a) Increase in price and a increase in sales revenue. b)Increase in price and decrease in sales revenue. c)Decrease in price and increase in sales revenue. d) Decrease in price and a decrease in sales revenue.Pricing Scenario: You just won a new laptop in a contest, and you decide to sell your old one. You do not have a lot of money and want to get the highest price possible for your old laptop. It is a Mac that you bought brand new last year. You are listing the laptop online, and you need to identify the price a. What price would you list your laptop for? b. Explain why the price you proposed would maximize your revenue using the principles of supply and demand. c. Do you believe the demand for your laptop will be elastic or inelastic?(a) Find the point (A, B, C, D, or E) that corresponds to the profit maximizing price and quantity. (Select only one letter.) (b) Which number corresponds to consumer surplus on the graph?
- a) The demand function for a product is p = 60 3-9/15) where q is the number of units and p is the price of one unit. At what price will the demand be 15 units? How many units will be demanded if the price is $41.60?If demand increases, at the new equilibrium: a) the price of the good decreases and the amount purchased increases. b) producers will produce less of the product than before. c) more of the product will be purchased at a higher price. d) less of the product will be purchased at a lower price.Assume that the supply and demand equations for 1-shirts at store A and 2 in a particular week are. = .7q+ 3 offer p= - 1.7q + 15 Demand Determine the equilibrium quantity and price that stabilizes the T-shirt market. (1) (4$5.5) (2) (7, $8) (3)($9.5) (4) (5, $6.5)
- Assuming this market is at equilibrium, the consumer surplus is $ _______. a) 9 b) 12 c) 21 d) 54 e) 72 f) 102 g) 126 h) 144 i) 156 j) 228 k) 252Problem 04-06 At point A on the demand curve shown below, how will a 1 percent increase in the price of the product affect total expenditure on the product? Price (S/week) 7 6 5 4 3 2 1 Demand 0 2 4 6 8 10 12 14 16 18 20 Quantity (units/week) Instructions: Enter your response rounded to the nearest whole number. Total expenditure will (Click to select) by about [ %Type the correct answer in the box. Spell all words correctly. Vivian conducted market research on her company’s products. She found that after the company raised the price of its product by $1.50, the demand in the uptown region remained the same with only minor fluctuations. However, she found that the demand in the downtown region dropped by 20 percent after the price change. How should Vivian take these demands into consideration? In a situation where demand differs in different areas, Vivian should consider the demand.
- Part 1. The demand for a commodity is given by Q = β0 + β1P + u, where Q denotes quantity, P denotes price, and u denotes factors other than price that determine demand. Supply for the commodity is given by Q = g0 + g1P + v, where v denotes factors other than price that determine supply. Suppose u and v both have a mean of 0, have standard deviations su and sv, respectively, and are mutually uncorrelated.a) Solve the two simultaneous equations to show how Q and P depend on u and v.b) Derive the means of P and Q.c) Derive the variance of P, the variance of Q, and the covariance between Q and P.You are the manager of a firm that receives revenues of $50,000 per year from product X and $50,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is 3. How much will your firm's total revenues (revenues from both products) change if you reduce the price of good X by 2 percent?(a) During the period of low demand (October to June) please determine the price Heathrow would charge for landings, and how many airplanes will land. (b) During the period of high demand (July to September) please determine the price Heathrow would charge for landings and how many planes will land.