Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
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 dally demand curve for blkes in Denver.
Use the green rectangle (trlangle 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.
120
110
100
Total Revenue
90
80
70
60
50
40
30
20
10
Demand
16 24
32
40 48
56 64 72 80 88
QUANTITY (Bikes)
On the following graph, use the green point (triangle symbol) to piot the annual total revenue when the market price is $20, $30, $40, $50, $60, $70,
and $80 per bike.
2770
2580
Tetal Revenue
2390
2200
W 2010
3 1920
1630
1440
1250
1060
30 40 50 50 70 80 90 100 110 120
PRICE (Dollars per bike)
10 20
According to the midpoint method, the price elasticity of demand between polnts A and B is approximately-
Suppose the price of bikes Is currently $20 per blke, shown as point B on the Initlal graph. Because the demand between polnts A and B is
v
a $10-per-bike Increase in price will lead to
v
In total revenue per day.
In general, In order for a…
Chapter 13 Solutions
Microeconomics (13th Edition)
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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