A camera company estimates that the demand function for its new digital camera is p = 275e-0.159 and the supply function is p = 25e0.219. Here q is measured in thousands. (a) What are the price and level of sales when the market is in equilibrium? (Recall: equilibrium occurs when demand and supply are equal.) (b) Compute the consumer surplus when the market is in equilibrium. (c) Compute the producer surplus when the market is in equilibrium. (d) Compute the total surplus when the market is in equilibrium. (e) Graph the demand and supply curves. (You may use an electronic device for this if you wish.) Verify that the curves intersect at your answer to (a). Shade regions of the graph whose areas correspond to the consumer surplus and producer surplus, respectively.

Redo Exercise 5, assuming that the house blend contains 300 grams of Colombian beans, 50 grams of Kenyan beans, and 150 grams of French roast beans and the gourmet blend contains 100 grams of Colombian beans, 350 grams of Kenyan beans, and 50 grams of French roast beans. This time the merchant has on hand 30 kilograms of Colombian beans, 15 kilograms of Kenyan beans, and 15 kilograms of French roast beans. Suppose one bag of the house blend produces a profit of $0.50, one bag of the special blend produces a profit of $1.50, and one bag of the gourmet blend produces a profit of $2.00. How many bags of each type should the merchant prepare if he wants to use up all of the beans and maximize his profit? What is the maximum profit?

Suppose the demand equation is: Q= 80 - 1.25p. What is the price elasticity of demand if the price is $40 per unt and output is 30 unites? The price elasticity of demand is-1.67. (Enter a numeric response using a real number rounded to twe decimal placss) This means that if the price increases by B%, the quantity demanded will (Enter a numeric response using a real number rounded to two decimal places.) decrease increase

Last year OHaganBooks.com experimented with an online subscriber service, Red On Line (ROL), for its e-book service. The consumer demand for ROL was modeled by the equation q = 900e−p2 + p, where p was the monthly access charge and q is the number of subscribers. (a)Obtain a formula for the price elasticity of demand, E, for ROL services. E(p) = _____ (b)Compute the elasticity of demand if the monthly access charge is set at $2 per month. E(2) = _____ (c)How much (in dollars) should the company have charged to obtain the maximum monthly revenue? $ _____ How much (in dollars) would this revenue have been? $ ______