Amtrak has a monopoly on rail travel in the U.S. It uses price discrimination to offer a discounted price for adults who are currently enrolled students. The marginal cost per train ticket from Baltimore to New York is 100. The demand for regular tickets is P=1000-5Q and the demand for student tickets is P=500-Q. b. Find the monopoly price and quantity for regular adult tickets? c. Find the monopoly price and quantity for discounted student tickets.
Q: Suppose that the picture below shows market demand and costs for a monopolist. price 9 8 7.00 6.50…
A: In a monopoly market structure, There exists a single seller. There exists high barriers to entry…
Q: The following four figures show the utility of wealth functions for 4 different consumers. Which…
A: This question focuses on finding the most likely candidate to accept a coin toss gamble, we'll…
Q: QUESTION 26 (Quantity of Money in circulation) x (Velocity of money) (Price) x (Real output)…
A: The image contains a question that involves the equation of exchange in economics, which is…
Q: If the economy's full-employment output is $5 trillion, actual output is $5 trillion, and the budget…
A: A structural deficit happens when a government's expenditures consistently exceed its revenues, even…
Q: 11, 2023 at 12:33 PM Harry owns a barber shop and charges $6 per haircut. By hiring one barber at…
A: Profit:The economic profit is calculated by subtracting all cost that is incurred in an economy as…
Q: Consider a data set with 15 observations and consider a multiple linear regression model with 7…
A: We have the following information:Sum of squares total (SST) = 1325Sum of squares regression (SSR) =…
Q: 2. Fill in the following table for a product in a perfectly competitive market. The market price for…
A: Total Revenue is the total earnings that the producer earns from the sale of the output produced.…
Q: The Apple Pie Factory produces apple pies. The firm sells its product and hires its workers in…
A: Under such market, price equals marginal revenue. As firms produce identical products and consumers…
Q: 19. A possible explanation for supply shifting from $1 to S2 is O a) an improvement in technology.…
A: In the image you gave, there are two questions about supply and demand curves in economic…
Q: Suppose that a country's inflation rate increases sharply. As a result, the inflation tax on holders…
A: Inflation means an increase in the general price level in the economy. Inflation tax refers to the…
Q: Monopolists can practice price discrimination in all monopoly markets. O a. True Ob. False
A: b. False
Q: Price $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 300 MR 800 units of output per day. O 700 units of…
A: A monopolist maximizes profit when it produces and sells the quantity of goods or services at which…
Q: What is GST in Canada? How does it works? and it's Importance?
A: The Goods and Services Tax (GST) in Canada is a value-added tax introduced by the federal government…
Q: According to Census data, in 2020, what percent of households had annual before - tax incomes of…
A: Census data refers to the vast amount of information collected by governments about their…
Q: QUESTION 12 wine Portugal 90 80 70 60 50+ 40- 30 20 10- 0 0 10 20 30 40 50 60 cloth PPF CPF wine 90…
A: PPF refers to the curve on a graph that shows the possible units that can be produced of 2 goods if…
Q: Which of these graphs shows the effect on the Phillips curve in Ethiopia of an appreciation of the…
A: The relation between inflation rate and unemployment of an economy is shown by the Phillips curve.…
Q: If the federal government wishes to combat inflation with a policy that has the smallest impact on…
A: If the federal government wishes to combat inflation with a policy that has the smallest impact on…
Q: You are the manager of a monopoly. Your analytics department estimates that a typical consumer's…
A: Demand function : P = 300 - 20QCost function : C (Q) = 60Q
Q: One of the problems present during the Nixon Administration was high levels of inflation. O True O…
A: Significant economic obstacles that came from both internal and foreign sources beset the Nixon…
Q: Home's import demand curve (shown on the graph to the right) for wheat is Quo 80-40P. Foreign's…
A: Global economic interdependence is strengthened by international trade, cultivating shared…
Q: Table 10-4 Quantity 1 a tax of $6 2 3 14 6 7 a tax of $4 per unit of output a subsidy of $4 per unit…
A: Private cost refers to the expenses or costs incurred by an individual or a firm in carrying out a…
Q: Which of the following is correct? $1,400 1,200 1,000 800 600 400 200 0 100 Total cost 320 Output…
A: This question asked us to determine the correct statement based on the graph illustrating total cost…
Q: PRICE LEVEL O a. C to D. O b. D to C. c. B to A Od. A to B. D LRAS O AD QUANTITY OF OUTPUT SRAS,…
A: Aggregate Demand and Supply:Aggregate Demand and Supply are the macroeconomic curves, showing the…
Q: The total amount owed by the federal government to the public is known as the O A) federal budget…
A: The federal government plays a central role in managing fiscal policy, influencing economic activity…
Q: 2. Problems and Applications Q2 If the Fed wants to increase the money supply, it can If the Fed…
A: "Fed" is a colloquial term often used as an abbreviation for the Federal Reserve System of the…
Q: Step by step answers
A: The objective of the question is to understand the impact on the marginal revenue productivity of a…
Q: Answer the question on the basis of the following cost data. Output Total Fixed Cost Total Variable…
A: Marginal cost:Marginal cost is the additional unit that is added to the total cost. It is…
Q: You have access to two N-fertilizer sources. Which is the more economical option? urea (46-0-0):…
A: To determine the most economical option ascertain the cost per pound of nitrogen from both sources.…
Q: If we see that the Federal Funds Rate equilibrium is equal to the Discount rate, which one of the…
A: If the Federal Funds Rate equilibrium is equal to the Discount rate, the most appropriate Fed action…
Q: 11. Bond prices and interest rates Suppose the following diagram represents the money market in the…
A: Money is anything that is accepted by all as a medium of exchange as it is a legal tender. Money is…
Q: 2. Calculating the debt to GDP ratio The following calculations help you see how the ratio of debt…
A: The debt to GDP ratio is the ratio indicating the total debt and total GDP of the country. The debt…
Q: 34. Discretionary fiscal policy refers to A) deliberate government efforts to stabilize the…
A: Discretionary fiscal policy refers to the deliberate actions taken by the government, through…
Q: Intended Spending (billions) $2,300 $2,100 $1,900 $1,700 $1,500 The marginal propensity to consume…
A: The marginal propensity to consume will be defined as change in consumption spending with respect to…
Q: 3. Changes in the money supply The following graph represents the money market for some hypothetical…
A: Money market shows the money demand and money supply. Money market shows the equilibrium condition…
Q: An ambiguous change in quantity and a decrease in price is most likely caused by A leftward…
A: Graphing the supply and the demand bend helps us to calculate whether a market is in equilibrium or…
Q: Question 8 Purchasing power parity (PPP) is the idea that one dollar buys you the same amount of…
A: Exports and Imports:In macroeconomics, the value of all the final products and services that are…
Q: Discuss some of the difficulties that may arise from enacting and carrying out fiscal policy and why…
A: Macroeconomic analysis provides a comprehensive picture of the financial status of an economy. It…
Q: Refer to the figure at right showing the market for nuts. The loss of consumer surplus associated…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve.The…
Q: Jisoo plants a number of trees in her garden every week, which keeps her neighborhood cool. Which of…
A: Externalities: When a firm produces a good, sometimes it creates costs or benefits for other firms.…
Q: product Y 28 24 20 16 2 8 4 0 0 4 Production Possibilities Frontier point A e) none of the above. 8…
A: The correct answer is:a) to produce more of product Y, some of product X has to be sacrificed.The…
Q: QUESTION 31 LAST CHANCE BANK OF TOMBSTONE ASSETS cash in the vault: deposits at Fed US treasury…
A: Given:Demand deposits = $5,000,000Required reserve ratio = 5%Excess reserves =?
Q: If the federal government wishes to combat inflation with a policy that has the smallest impact on…
A: Inflation, the rise in the general Price level of goods and services, is a concern for governments…
Q: Which expression best describes the ordinary least squares estimate for B₁? (a) b₁ = -11.111 (b) b₁…
A: We have been given the following data,ixiyi11-2.523-0.75351.347-1.55591.25Here x is the independent…
Q: Refer to the Laffer curve below. Which of the following is true? A) At A there will be a budget…
A: This problem focuses on determining the true statement among the provided options A, B, and C…
Q: Suppose the kohlrabi industry is a natural monopoly facing the following (inverse) market demand…
A: In economic theory, Ramsey's pricing regulation seeks to establish prices for monopolies to optimize…
Q: 39) The figure above illustrates the marginal private cost and the marginal social cost to the city…
A: The extra cost imposed on society for every extra unit of an item or service is shown in the MSC…
Q: In the following graph, the price of capital is $100 per unit; the price of labor is $25 per unit.…
A: Production refers to the process of creating goods or services by utilizing various resources such…
Q: 1. Write a short case that must cover 3 different risk types and 3 different loss types. 2.…
A: The objective of the question is to create a hypothetical scenario that includes three different…
Q: Domestic producers gain P/$ 25 15 10 a. $120,000 b. $75.000 because of the tariff. 10 20 30 40 50 c.…
A: A tariff is a kind of tax or duty imposed by the government on imports or exports of goods to…
Q: 25 20 15 10 5 O P 3 CO S 9 12 15 18 21 24 IP D 25. If the free trade price is IP and this country…
A: An import quota is a trade restriction that sets a limit on the quantity of goods that can be…
Step by step
Solved in 4 steps with 8 images
- Exercise A.2 Explain why monopoly means less social welfare. Is there any kind of price discrimination that does not generate loss of social welfare? Graphically represent the two situations.I understand how to compute the revenue but I'm stuck on computing the elasticity.If Omer has sport hall for adults and children. The currently price per ticket is OR 5 for everyone (adults and children). His friend Ali who studied economics course in CCBA advises him that there may be another way of increasing your total revenue. Given the demand curves (adult demand and child demand) shown, Adult Demand Child Demand Price Price $10 $10 8. 7 7 6 5 4 3 3 2 1 1 10 20 30 40 50 60 70 80 90 100 Quantity 10 15 20 25 30 35 40 45 50 Quantity Answer the following questions from the above two curves. a. What is Omer's current total revenue for both groups (adults and children)? b. Which market has the more inelastic demand? d. Given the graphs and what your friend knows about economics, he recommends you increase the price of adult's ticket to $8 and lower the price of a child's ticket to $3. How much could you increase total revenue if you take his advice?
- Space Spider Airline is the only airline in Spiderland. The airline has two majorgroups of passengers – business travelers and vacation travelers. One group of themhas its price elasticity of demand at -1.8 and another group has -3.0 respectively.a. Which group, business travelers or vacation travelers, is more likely havingits price elasticity of demand at -3.0? Briefly explain your answer.b. Which traveler group will be charged a higher fare by Space Spider Airlineunder price discrimination? Suggest THREE practical ways for SpaceSpider Airline to identify this group of passengers. Explain your answersbriefly.Please solve Fast i give 2 like The managers of Movies Plus, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 1.5 for tickets at Movies Plus and adults have an own price elasticity of 1.2. If the managers have correctly determined the third-degree profit-maximizing price for adults is $15, what is the third-degree profit-maximizing price to charge students? Group of answer choices (1)$13.50 (2)$10.00 (3)$7.50 (4)$8.50Hi I need help with this gr 11 economic question. Could someone explain the elasticity of demand and supply for Luxottica's product/industry?
- IN OWN WORDS, about 200 to 400, Discuss the price elasticity of liquor products of.a liquor company. Explain how the company's strategies (revenue and profit) would be affected by price elasticity. will give a downvote for plagiarised answer.nd ID! But it is also so you can get some pr The diagram shows the market for Film circa 1925, when Kodak ruled the industry. Price of roll 50 40 30 20 10 0 MR D 1. What is the monopoly price of a roll of film? 2. What is the monopoly quantity of film sold? 3. What is the competitive price of a film roll? 4. What is the competitive quantity of film sold? 500 600 700 800 S 006 Quantity per day (thousands), rolls 1,000Price EQ A Market for Product X B S Quantity If the market for Product X is a monopoly, how might the business that produces Product X raise the equilibrium price of the product? D The business can increase production of product X, because doing so would shift the supply curve left and create a surplus. The business can increase production of product X, because doing so would shift the supply curve right and create
- Snooki, a new marketing intern, was a little scatterbrained during the first meeting with her manager, when she made four statements about pricing. Which one of her four statements about pricing was correct? a. A product with an elastic demand is likely to face little competition. b. An EDLP retailer offers many price promotions. c. A product with an elasticity of demand of -0.7 will enjoy increases in revenue when prices are cut. d. Cost-plus pricing is not the perfect pricing strategy because the pricing method ignores customers’ willingness to pay and competitors’ pricing strategy.A town of 2000 households constitutes a market for eggs. Current sales are 2400 dozen eggs per week at aprice of $1.25 per dozen. 1200 households living on the west side of the river buy 1600 dozen eggs and their elasticity of demands is -1.5. The remaining households live on the east side of the river, buy the rest of the eggs and have an elasticity of demand of -3. Calculate the elasticity of market curve for the town as a whole.K The table shows a sample of prices and the quantity sold by a monopolist. What is the price elasticity of demand at a price of $97? A. 1 B. 1.04 OC. 0.89 OD. O Price 100 99 98 97 96 95 94 Quantity 95 96 97 98 99 100 101