Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 6, Problem 19P
To determine
The effect of price rise on total revenue in long run and short run.
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Demand for Corn Flakes is: P = 11 - Q. Supply of Kellogg's Corn Flakes is: P = 2 + Q. Now a generic company enters the market, selling generic Corn Flakes for $8. Assume consumers are indifferent between generic and Kellogg's Corn Flakes. How many boxes of corn flakes will sell in total (both brand and generic)? Enter as a value.
Chapter 6 Solutions
Exploring Economics
Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Explain why using the midpoint formula for...Ch. 6 - Prob. 7PCh. 6 - If the elasticity of demand for hamburgers equals...Ch. 6 - Evaluate the following statement: Along a...Ch. 6 - If the midpoint on a straight-line demand curve is...
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Similar questions
- If the midpoint on a straight-line demand curve is at a price of $7, what can we say about the elasticity of demand for a price change from $12 to $10? What about from $6 to $4?arrow_forwardIf the demand for the product/service you are selling is inelastic, would you increase the price? Why or why not?arrow_forwardWhat is the impact of market imperfections on the price elasticities of demand? What is the impact of market imperfections on the price elasticities of supply?arrow_forward
- Mandy has a lemonade stand. Her mother pays for all of her supplies, so she only cares about maximizing her revenue. An economist tells Mandy that at her current price, the demand for her lemonade is inelastic. To maximize revenue, Mandy shouldarrow_forwardFactors affecting change in demandarrow_forwardTwo drivers-Kenji and Lucia-each drive up to a gas station. Before looking at the price, each places an order. Kenji says, "I'd like 5 gallons of gas." Lucia says, "I'd like $20 worth of gas." Which of the following statements is correct? Check all that apply. Kenji's price elasticity of demand is 1. Lucia's price elasticity of demand is 0. Lucia's price elasticity of demand is 1. Kenji's price elasticity of demand is between 0 and 1.arrow_forward
- Which product likely has a more in elastic demand, a movie ticket or lifesaving medication? Why?arrow_forwardJim saw a decrease in the quantity demanded for his firm’s product from 8000 to 4000 units a week when he raised the price of the product from $200 to $250. What is Jim’s own price elasticity of demand?arrow_forwardDemand for a product is price inelastic. What effect will a rise in price have on demand and total revenue? Pick a, b, c, or darrow_forward
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