The following graph shows the demand curve Shen faces. As you can see, to sell the additional engine, Shen must lower his price from $125,000 to $75,000 per fire engine. Note that while Shen gains revenue from the additional engine he sells, he also loses revenue from the initial three engines because he sells them all at the lower price.   True or False: If Shen's Fire Engines were a competitive firm instead and $125,000 were the market price for an engine, decreasing its price from $125,000 to $75,000 would result in the same change in the production quantity and, thus, total revenue.   Should Shen increase production from 3 to 4 fire engines?

Healy Ltd is a paper merchant. The company sellsstandard A4 paper to a wide variety of stationers, other retailers and office equipment suppliers. In 2014, incomes rose by two per cent, as a result demand for paper rose from 2,000,000 reams to 2,030,000 reams. Calculate the income elasticity of demand for paper in this case and  explain whether (i) demand for paper in this case is income elastic or income inelastic and (ii) whether paper is a normal good or an inferior good.

Edison's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Edison produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Edison faces. As you can see, to sell the additional engine, Edison must lower his price from $80,000 to $60,000 per fire engine. Note that while Edison gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $60,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $60,000. 100 90 PRICE (Thousands of dollars per fire engine) 8 80 70 60 50 40 30 10 0 Edison 0 1 O True 2 O False + 6 3 4 5 7 QUANTITY (Fire…

Sam's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Sam produced seven fire engines, but he has decided to increase production to eight fire engines. The following graph shows the demand curve Sam faces. As you can see, to sell the additional engine, Sam must lower his price from $100,000 to $50,000 per fire engine. Note that while Sam gains revenue from the additional engine he sells, he also loses revenue from the initial seven engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial seven engines by selling at $50,000 rather than $100,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. 250 225 Revenue Lost 200 175 150 Revenue Gained 125 Demand 100 75 50 25 + 1 2 3 4 5 6 7 8 10 QUANTITY (Fire engines) PRICE (Thousands of dollars per…

Please....... Solve this with proper. Calculation

You sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is -2.5. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for both of the goods. [Anda menjual dua barang berbeza: pencetak dan kartrij toner. Keanjalan harga permintaan untuk pencetak adalah -3.4, dan anda memperoleh jumlah hasil sebanyak RM15,000 sebulan memperoleh jumlah hasil RM5,000 sebulan untuk kartrij toner. Keanjalan permintaan silang bagi kedua-dua barang adalah -2.5. Sekiranya anda membuat keputusan untuk menurunkan harga pencetak sebanyak 5%, hitung jumlah hasil baharu anda untuk kedua-dua barang tersebut.] (c) untuk barang tersebut. Anda

Charles's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Charles produced five fire engines, but he has decided to increase production to six fire engines. The following graph shows the demand curve Charles faces. As you can see, to sell the additional engine, Charles must lower his price from $160,000 to $120,000 per fire engine. Note that while Charles gains revenue from the additional engine he sells, he also loses revenue from the initial five engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $120,000 rather than $160,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $120,000. PRICE (Thousands of dollars per fire engine) 8 8 8 8 8 8 200 180 160 140 120 100 8 8 8 8 60 20 0 1 Demand 3 4 5 6 7 QUANTITY (Fire…

Suppose that at a price of $2,300 apples are sold per day. The elasticity of supply is 1 when the price increases from $2 to $4 in the short run and the elasticity of supply is 1.5 when the price increases from $2 to $4 in the long run. (Use midpoint elasticity formula). How much seller will sell the apples if the price increases from $2 to $4 in the short run?

Tim True increase production from 4 to 5 fire engines because the True or False: If Tim's Fire Engines were a competitive firm instead and $105,000 were the market price for an engine, increasing its production would not affect the price at which he can sell engines. False dominates in this scenario.

3. The effects of price changes on total revenue Edison's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Edison produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Edison faces. As you can see, to sell the additional engine, Edison must lower his price from $105,000 to $90,000 per fire engine. Note that while Edison gains revenue from the additional engine he sells, he also loses revenue from the initial four engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. (Note: Area is shown in thousands.) ICE (Thousands of dollars per fire engine). 150 135…