1. A suburban tennis club rents its courts for $25 per person per hour. Eva’s demand curve for court time is given by P= 50 – ¼ Q, where Q is measured in hours per year. a) How many hours of court time will Eva rent per year? b) Assuming there are no other tennis clubs nearby, what is the maximum annual membership fee Eva would be willing to pay for the right to buy court time for $25/hour? Show your results graphically.

1. A suburban tennis club rents its courts for $25 per person per hour. Eva’s demand curve for court time is given by P= 50 – ¼ Q, where Q is measured in hours per year. a) How many hours of court time will Eva rent per year? b) Assuming there are no other tennis clubs nearby, what is the maximum annual membership fee Eva would be willing to pay for the right to buy court time for $25/hour? Show your results graphically.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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