6. A record company estimates the industry demand for "hard alternative rock" albums to be: QD = 1000 -125-P. It estimates the industry supply to be: QS = 125-P. a. Given these estimates, what does it expect the industry output and price to be? b. A government commission announces that lyrics on "hard alternative rock" albums are offensive and should be banned. This causes consumers to purchase 20% more of such albums at any given price, compared to question 6a. What effect will this have on industry output and the price? c. Calculate the consumer surplus for parts a and b above. Are consumers better or worse off given the commission's recommendation?

An end-of-aisle price promotion changes the price elasticity of a good from −3 to −4. Suppose the normal price is $18, which equates marginal revenue with marginal cost at the initial elasticity of –3. What should the promotional price be when the elasticity changes to –4? (Hint: In other words, what price will equate marginal revenue and marginal cost?)

500-QD where P is the price of oPad and QD is 10 the quantity of oPad. What is the price elasticity of demand when the price is $30? (Please keep 1 decimal place in your answer) Suppose the demand curve for oPad is P = 9

The diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). 100- 90- Total revenue is $ (Enter your response as an integer.) 80- 70- 60 60- 50- 40- 30- 20- 10- D 30 0- 10 20 30 40 50 60 70 80 90 100 Quantity (1,000s of units per unit of time) Price (dollars per unit)

What is the difference between social and industrial regulations? Give examples of each.

George has been selling 7,000 T-shirts per month for $7.00. When he increased the price to $9.00, he sold only 6,000 T-shirts. Which of the following best approximates the price elasticity of demand? -0.6769   -0.6154   -0.3077   -0.5538     Suppose George's marginal cost is $4 per shirt. Before the price change, George's initial price markup over marginal cost was approximately    . George's desired markup is    .   Since George's initial markup, or actual margin, was   than his desired margin, raising the price was

A dog rescue operation finds when it sets its adoption fee at $140 in a month, 200 dogs are adopted, but when they drop the price to $60, 300 dogs are adopted.  What does that mean about the demand elasticity in their area?   Question 4 options:   The elasticity of demand is 0.5 and its relatively elastic   The elasticity of demand is 0.5 and its relatively inelastic   none of these answers are accurate   The elasticity of demand is 2 and its relatively inelastic   The elasticity of demand is 2 and its relatively elastic

Suppose that you are in charge of a toll bridge over the Mississippi River. The demand for bridge crossing Q is given by the following: 2P = 20 - Q a) How many people would cross the bridge if there were no toll? (YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT) b) The toll bridge operator is considering setting up a price of $5.00. At that price, how many people will cross the bridge? (YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT) c) How many people would cross the bridge if the toll is set at $10.00? (YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT)

Which of the following is most likely to have a low price elasticity of demand? A good that is very expensive. A good with no close substitutes. A good that most people consider a luxury. All are equally likely to have a low price elasticity of demand.

DINKS are households with "double income, no kids", and such households are invading your neighbourhood. You decide to take advantage of this influx by starting a gourmet take-away food store. Assume that these DINKS in your neighbourhood are your only potential customers. You know that the price elasticity of demand for your food from DINKS is 0.5, and their income elasticity of demand is 1.5. From the standpoint of the quantity that you sell, explain which of the following changes would concern you most. First, the number of DINKS in your neighbourhood falls by 10 percent. Second, the average income of DINKS falls by 5 percent.