Scenario: The market demand for soccer balls in a small town is 2,500 units. There are two rival sports brands selling soccer balls - "Sporty" and "Go!". The products of the two brands are identical. The quantity demanded for Sporty's soccer balls is 2,500 units if the price charged by Sporty is higher than the price charged by Go! the price charged by Sporty is equal to the price charged by Go! O the price charged by Go! is higher than the unit cost of producing a ball O the price charged by Go! is higher than the price charged by Sporty

10) The proprietor of the Shaw Music Mania Store calculates the demand equation for a certain brand of CDs to be q = -50p + 2000 , where p is the price it charges per disc and q is the number of discs sold in a day. Determine the maximum total annual revenue and the price at which the max revenue occurs.

3. Consider the Smith family who have the following demand for rental housing (q, measured in square feet): q=0.5*(y/p), where y is the Smith family income and p is the price of housing per square foot. The Smith's income is $4000 per month and initially the price of housing is $2 per square foot per month. a. If the Smiths are operating on their demand curve, how much housing are they consuming? b. How much is the Smith family's monthly rent? How much does the Smith family spend on other consumption? c. Starting from the initial equilibrium, the government now grants the Smiths a proportional rent subsidy with B=0.5. How much housing does the Smith family purchase given the subsidy? d. What is the gross market rent per month paid by the Smith family? What is the net rent (after deducting the subsidy) paid by the Smith family? How much does the Smith family spend on other consumption in its new equilibrium? e. What is total dollar outlay of the government for the Smith's housing…

Suppose Nationwide increases the insurance premium they charge for their auto policies by 8 percent. In response, the demand for State Farm auto policies in a small town increases from 6,000 to 6,900. What is the cross-price elasticity of demand for State Farm auto policies in this town? Using the midpoint formula, the cross-price elasticity of demand for State Farm auto policies (Enter your response rounded to three decimal places) In this instance, auto insurance from Nationwide and auto insurance from State Farm are

Your firm has a monopoly over of two products, Good 1 and Good 2. Both products are produced at a constant marginal cost of $25. You face four consumers (or groups of consumers) with the following reservation prices: (Image)Suppose that you have three alternative pricing strategies: i) individual pricing, ii) pure bundling, and iii) mixed bundling. For each strategy, determine the optimal prices to be charged, which consumer buys which product and the resulting profit. Which pricing strategy would yield the largest profit? Consumer B C D Good 1 (S/unit) 15 40 70 85 Good 2 (S/unit) 90 45 30 20

please answer D and E

01 Question Hugh, Frank, and Luis are the only three buyers of gold in a small mining town. Their inverse demand functions for gold are as follows: Hugh: p=240.00-40.00 × Qu. Frank: p= 48.00-8.00 × QF. Luis: p= 12.00-2.00 × QL Se QH-QF, and QL are the quantities (in ounces) demanded by Hugh, Frank, and Luis, respectively.

An analyst for FoodMax estimates that the demand for its “Brand X" potato chips is given by: InQx = 10.34 – 3.2 In Px+ 4Py+ 1.5 In Ax where Qx and Px are the respective quantity and price of a four-ounce bag of Brand X potato chips, Pyis the price of a six-ounce bag sold by its only competitor, and Ax is FoodMax's level of advertising on brand X potato chips. Last year, FoodMax sold 5 million bags of Brand X chips and spent $0.25 million on advertising. Its plant lease is $2.5 million (this annual contract includes utilities) and its depreciation charge for capital equipment was $2.5 million; payments to employees (all of whom earn annual salaries) were $0.5 million. The only other costs associated with manufacturing and distributing Brand X chips are the costs of raw potatoes, peanut oil, and bags; last year FoodMax spent $2.5 million on these items, which were purchased in competitive input markets. Based on this information, what is the profit-maximizing price for a bag of Brand X…

You are working trying to estimate the proper price to charge a market for the firm that sells beer in Lancaster Pennsylvania. They estimated that the demand curve for the market is Quantity demanded=20-2P. The firm currently prices the good at 8 dollars. They want to move the price to 6 dollars in a attempt to increase profits. 1) What is the elasticity for this move in price (Use the midpoint method for elasticity) make sure you show your work?  2) Now you are contacted by a different branch of this company that is in a lower priced (Scranton P.A.) market with the same demand curve. They want to move the price from 2 to 5 dollars. What is the elasticity of this change (Use the midpoint method)? 3) Now suppose you find out that there is a similar product that impacts the Quantity demanded for a product. The relationship is Qd=15+Pb. Now suppose the price (Pb) of the other good is 5 and goes to 6. What is the Cross-price elasticity of the good?

There are several close substitutes for Bayer aspirin but fewer substitutes for a complete medical examination. Therefore, all other things equal, you would expect the demand for: O Bayer aspirin to be more perfectly price-inelastic. the two to be equally price-elastic. Bayer aspirin to be more price-elastic than is the demand for medical examinations. O medical examinations to be more price-elastic than is the demand for Bayer aspirin.