11. Suppose that you develop a software product called "EconSolver" which takes in the parameters of an economic problem and first determines how to solve it and then solves it. You have two potential markets for this product: corporations (c) and students (s). The demand schedules you have estimated are: Price Dc 300 10 275 11 250 12 225 13 200 14 175 15 150 16 Ds 0 2 4 6 8 10 12 Production, distribution and software support costs are estimated to be $50 per copy for each type of customer. (i) Assume that you could only charge one price for this product regardless of customer type. What would that price be and how much profit would you make? (ii) Assume that you could practice 3rd degree price discrimination in this market. What price would you charge each customer type and what would your total profits be? (iii) Use the language of economics to explain why 3rd degree price discrimination works in this example.

11. Suppose that you develop a software product called "EconSolver" which takes in the parameters of an economic problem and first determines how to solve it and then solves it. You have two potential markets for this product: corporations (c) and students (s). The demand schedules you have estimated are: Price Dc 300 10 275 11 250 12 225 13 200 14 175 15 150 16 Ds 0 2 4 6 8 10 12 Production, distribution and software support costs are estimated to be $50 per copy for each type of customer. (i) Assume that you could only charge one price for this product regardless of customer type. What would that price be and how much profit would you make? (ii) Assume that you could practice 3rd degree price discrimination in this market. What price would you charge each customer type and what would your total profits be? (iii) Use the language of economics to explain why 3rd degree price discrimination works in this example.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Quiz: Demand i 5 2 Question 18- Module 3 Quiz: Demand - Connect W An increase in the demand for music downloads indicates that more music downloads are Multiple Choice #3 demanded because music download prices have decreased. demanded because sellers are putting music downloads on sale. demanded because sellers are selling more music downloads. demanded even if prices of music downloads stay the same. Q E $ 4 R % 5 T Saved U * 8 + ( ( 9 0 0
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
12- 11- Price of Santa hats (5) 9. 2 1 2000 4000 6000 8000 Quantity of Santa hat Supply Demand 10000 Suppose a 3 dollar tax is imposed on the market for Santa hats depicted above. Consumers will then pay a post-tax price of dollars (give a whole number).
Derive the following with complete solution a. supply equationb. demand equationc. equilibrium quantityd. equilibrium price
PRICE (Dollars per unit) 100 90 80 70 60 50 40 30 20 10 0 0 Statement H 10 J K B A C +D + E K J H Đ 20 30 40 50 60 70 80 90 100 QUANTITY (Units) Using the graph, complete the table that follows by indicating whether each statement is true or false. (Hint: You can display the coordinates by clicking on the points.) Curve KK is less elastic between points A and C than curve JJ is between points A and D. Between points A and B, curve II is perfectly inelastic. Between points A and C, curve KK is elastic. True O O False O O
The following table contains a monthly demand and supply schedule for large. single-topp• ng, carry-out pizza Price of pizza (per pack) Quantity demanded for pizza (per pack) Quantity supplied for pizza (per pack) Quantity demanded for good Y $21 6000 7900 6000 $17 7000 7200 8000 $19 8000 6500 10000 (A) Derive the market demand and market supply function for the carry-out pizza? (B) What Is the equilbrium price and quantity for the above market? Leave your answer in 2 decimal place (if any) C Suppose the price of a conplement good to pizza has fallen. Sketch a diagram that shows the effect of the above to the market equilbnum for pizza. Briefly explan the changes
MICROECONOMICS
9. Let (inverse) demand be Pb = 84 - 1 Qb and (inverse) supply be Pv = 20 + 2 Qv. What quantity will buyers purchase if the market is competitive? Answer: your answer Submit Price ($) $200 $ 180 $ 160 $140 $120 $100 $80 $ 60 $40 $20 $0 0 10 20 Demand 30 40 Supply 50 Eqm 60 70 80 90
1. Exercise 14.1 The price elasticity of demand for a textbook sold in the United States is estimated to be -2, whereas the price elasticity of demand for books sold overseas is -3. The U.S. market requires hardcover books with a marginal cost of $40; the overseas market is normally served with softcover texts on newsprint, having a marginal cost of only $15. The profit-maximizing price in the U.S. market is that MR P× (1+ × (1+)) and the profit-maximizing price in the overseas market is (Hint: Remember
A1). The price, p, that a bookstore charges for a special gift edition of a popular trilogy is related to the demand, q, by the equation 100pq + q? = 5,000,000. Suppose the price is currently set at $40. (a). At what rate is the demand currently changing with respect to this price? (Include units) (b). At what rate is the revenue currently changing with respect to this price? (Hint: use the chain rule). (Include units). (c). Suppose the demand is currently increasing at a rate of 50 copies per month. How fast is the price currently changing per month? (again, assume the price is currently $40).Include units.
Questions 2 What happens to the price and quantity demanded of peanuts when a new study finds peanuts are higher in saturated fats than other nuts. Also, a drought hurts peanut production. Data suggests a smaller supply change than demand change. If applicable, explain supply and demand curve movements in your response. (assume upward sloping supply curve and downward sloping demand curve) (assume similar elasticities-slopes).
Q4) Assume a market of a specific good. The demand and supply equation is as shown below: Pp = 70 – 3QD Ps = 5 + 20s The demand price elasticities is inelastic. From the firms' perspective, the revenue would be higher if price increases. Let's assume that the market is currently not at the equilibrium with the market price being higher by 2 units than the equilibrium price. 1. Find the market quantity 2. Find the new Consumer Surplus 3. Find the new Producer Surplus