Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 13, Problem 21APA
(a)
To determine
The
(b)
To determine
Graphical representation of the new plans and the existing plan.
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The following graph shows the daily demand curve for bippitybops in Detroit.
Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.
Note: You will not be graded on any changes made to this graph.
PRICE (Dollars per bippitybop)
OTAL REVENUE (Dollars)
2400
1600
100
90
1200
80
1000
70
800
60
50
40
30
20
2200 +
10
2000 +
1800 +
0
1400 +
Calculate the daily total revenue when the market price is $90, $80, $70, $60, $50, $40, $30, and $20 per bippitybop. Then, use the green point
(triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph.
(?)
0
**
B
Demand
80
10 20 30 40 50 60 70
QUANTITY (Bippitybops per day)
90 100
Total Revenue
A
?
Total Revenue
8. Examples of price discrimination
Brian and Eleanor are debating the use of coupons by grocery stores. Brian says, "The use of coupons in grocery stores represents a means of price
discrimination. It's pure and simple. Coupons do reduce the price of groceries, but mostly to people who are less likely to buy at the full price." By
contrast, Eleanor contends, "Coupons do not constitute price discrimination. They simply represent a way of temporarily changing the prices of some
grocery items. Coupons reduce the price for everyone, not just for those who are price sensitive."
Economists generally agree with
The following graph shows the daily demand curve for bippitybops in Chicago.
Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.
Note: You will not be graded on any changes made to this graph.
Total Revenue
0
8
16
24
32
40
48
56
64
72
80
200
180
160
140
120
100
80
60
40
20
0
PRICE (Dollars per bippitybop)
QUANTITY (Bippitybops per day)
Demand
A
B
Area: 1280
Calculate the daily total revenue when the market price is $180, $160, $140, $120, $100, $80, $60, and $40 per bippitybop. Then, use the green point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph.
Total Revenue
0
8
16
24
32
40
48
56
64
72
80
3840
3520
3200
2880
2560
2240
1920
1600
1280
960
640
320
0
TOTAL REVENUE (Dollars)
QUANTITY (Bippitybops per day)
According to the midpoints formula, the price elasticity of demand between points A and B on the initial graph is approximately .
Suppose the…
Chapter 13 Solutions
Macroeconomics
Ch. 13.1 - Prob. 1RQCh. 13.1 - Prob. 2RQCh. 13.1 - Prob. 3RQCh. 13.2 - Prob. 1RQCh. 13.2 - Prob. 2RQCh. 13.2 - Prob. 3RQCh. 13.2 - Prob. 4RQCh. 13.3 - Prob. 1RQCh. 13.3 - Prob. 2RQCh. 13.3 - Prob. 3RQ
Ch. 13.3 - Prob. 4RQCh. 13.4 - Prob. 1RQCh. 13.4 - Prob. 2RQCh. 13.4 - Prob. 3RQCh. 13.4 - Prob. 4RQCh. 13.5 - Prob. 1RQCh. 13.5 - Prob. 2RQCh. 13.5 - Prob. 3RQCh. 13.5 - Prob. 4RQCh. 13 - Prob. 1SPACh. 13 - Prob. 2SPACh. 13 - Prob. 3SPACh. 13 - Prob. 4SPACh. 13 - Prob. 5SPACh. 13 - Prob. 6SPACh. 13 - Prob. 7SPACh. 13 - Prob. 8SPACh. 13 - Prob. 9SPACh. 13 - Prob. 10APACh. 13 - Prob. 11APACh. 13 - Prob. 12APACh. 13 - Prob. 13APACh. 13 - Prob. 14APACh. 13 - Prob. 15APACh. 13 - Prob. 16APACh. 13 - Prob. 17APACh. 13 - Prob. 18APACh. 13 - Prob. 19APACh. 13 - Prob. 20APACh. 13 - Prob. 21APACh. 13 - Prob. 22APACh. 13 - Prob. 23APACh. 13 - Prob. 24APACh. 13 - Prob. 25APA
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