Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 16, Problem 16.2.2RQ
In 2017, the Rock and Roll Hall of Fame and Museum charged the following admission prices:
| Demographic | Admission |
| Adults | $23.50 |
| College students | $18.00 |
| Seniors (65 and older) | $21.25 |
| Children between 6 and 12 | $13.75 |
| Military personnel | $19.00 |
Use the admission prices to rank these groups based on their
Source: www.rockhall.com.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The table above gives the demand schedule for Maritime Museum in Beşiktaş.
What admission price should the MaritiME Museum charge for getting the maximum total revenue?
Suppose you are a business owner. Discuss how you would use various demand elasticities (own-price, cross-price & income) in your decision making process.
The supply and demand schedules for tickets to basketball games in town of Oakwood are given in the table below.Price Quantity DemandedQuantity Supplied$65,0002,00074,0002,00083,0002,00092,0002,000101,0002,000The stadium owners need to find the optimum price for the games.What are the coefficients of elasticity of supply and demand if the price is raised from $6 to $8?
Chapter 16 Solutions
Microeconomics (7th Edition)
Ch. 16 - What is the law of one price? What is arbitrage?Ch. 16 - Prob. 16.1.2RQCh. 16 - Prob. 16.1.3PACh. 16 - Prob. 16.1.4PACh. 16 - Prob. 16.1.5PACh. 16 - Prob. 16.1.6PACh. 16 - Prob. 16.2.1RQCh. 16 - In 2017, the Rock and Roll Hall of Fame and Museum...Ch. 16 - Prob. 16.2.3RQCh. 16 - Prob. 16.2.4PA
Ch. 16 - Lexmark charges lower prices for its printer...Ch. 16 - Prob. 16.2.6PACh. 16 - Prob. 16.2.7PACh. 16 - Prob. 16.2.8PACh. 16 - Prob. 16.2.9PACh. 16 - Prob. 16.2.10PACh. 16 - Prob. 16.2.11PACh. 16 - Prob. 16.2.12PACh. 16 - Prob. 16.2.13PACh. 16 - Prob. 16.2.14PACh. 16 - Prob. 16.2.15PACh. 16 - Prob. 16.3.1RQCh. 16 - Prob. 16.3.2RQCh. 16 - Prob. 16.3.3RQCh. 16 - Prob. 16.3.4PACh. 16 - Prob. 16.3.5PACh. 16 - Prob. 16.3.6PACh. 16 - Prob. 16.3.7PACh. 16 - Prob. 16.3.8PACh. 16 - Prob. 16.3.9PACh. 16 - Prob. 16.3.10PACh. 16 - Prob. 16.3.11PACh. 16 - Prob. 16.3.12PACh. 16 - Prob. 16.2CTECh. 16 - Prob. 16.3CTE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- The supply and demand schedules for tickets to basketball games in town of Oakwood are given in the table below.Price Quantity DemandedQuantity Supplied$65,0002,00074,0002,00083,0002,00092,0002,000101,0002,000The stadium owners need to find the optimum price for the games.What are the coefficients of elasticity of supply and demand if the price is raised from $6 to $8? Characterize the demand and supply for tickets based on the calculated elasticies. What is the optimum price that the stadium owners can set for the tickets? Why is the selected price for the tickets better than other prices given in the table above?arrow_forwardApplication 1.7, In fall 2006, Pace University in New York raised its annual tuition from $24,500 to $29,400. Freshman enrollment declined from 1,450 in fall 2005 to 1,150 in fall 2006. Assuming that the demand curve for places in the freshmen class at Pace did not shift between 2005 and 2006, use this information to calculate the price elasticity of demand. Use the midpoint formula in your calculation. Source: Karen W. Arenson, "At Universities, Plum Post at Top Is Now Shaky," New York Times, January 9, 2007. The price elasticity of demand for Pace University for the fall of 2006 is. (Hint: Be sure to include the negative sign, and enter your response rounded to two decimal places.) The demand for places in Pace's freshman class is price Calculate the total revenue generated from Pace's freshman class in 2005 $ Calculate the total revenue generated from Pace's freshman class in 2006 $. The total amount of tuition Pace received from its freshman class in 2006 compared with 2005.arrow_forwardThe following figure depicts the supply curve of a certain firm. Price 70 60 50 40 30 20 10 0 0 Refer to the figure above. If the elasticity of supply is 0.5 when the quantity changes from 100 to 150, what is the price at the quantity 100? $2,50 $4 $5 50 100 150 200 250 300 Quantity $6arrow_forward
- What is price discrimination? Explain how the theories of elasticity, if used, can help suppliers make decisions on product prices.arrow_forwardWhat is the relationship between price elasticity, revenue and marginal revenue?arrow_forwardSupply, Demand, and Elasticity Briefly summarize recent trends in demand on both your company and the overall industry. ( Coca-Cola would analyze the impact of trends in demand on both Coca-Cola and the soft drink market.) Who are the company’s main competitors? Be sure to evaluate the non-price determinants of demand in this section. Which factors have an impact on consumer responsiveness to changes in the price of your company’s goods and/or services? Would you consider the company’s goods and/or services to be price elastic or price inelastic? Why?arrow_forward
- As the lockdown around the traveling destinations of the world began to ease and there is an increase in the demand for tourism services. Following is the demand schedule for the two traveling destinations Turkey and Malaysia. Price Quantity Demanded Turkey Quantity Demanded Malaysia 150,000 65,000 50,000 300,000 48,000 55,500 450,000 30,000 58,000 Using the midpoint formula calculate the price elasticity of demand when price increased from 150,000 to 300,000. Also explain and illustrates if the demand is elastic or inelastic. Find the cross-price elasticity of demand if the price of turkey package increased from 300,000 to 450,000. Explain if the two goods in question are substitute and complements. With the reference to your answer in part (a), suppose you are asked as a manager of traveling company to ensure maximum revenue generation for your firm in Turkey. Justify how you would increase the firm revenues.arrow_forwardAgricultural economists at the Department of Agriculture have estimated the following elasticities. If you are a beef producer, which is a more threatening competitor for you—the poultry, pork, or fish industry? Explain why. b) Use the elasticities in the table below to answer questions. Own Price Elasticity of Beef Demand 0.56 Own Price Elasticity of Beef Supply 0.15 Cross Price Elasticity of Beef Supply with respect to mutton 0.10 Interpret the three measures of elasticity A new mutton processing technology is expected to reduce the cost of processing mutton, and subsequently, reduce mutton prices to consumers by 25%. Using an equilibrium displacement model, estimate the impact of this new technology on beef prices and production levels. Page 4 of 7arrow_forwardA dog rescue operation finds when it sets its adoption fee at $140 in a month, 200 dogs are adopted, but when they drop the price to $60, 300 dogs are adopted. What does that mean about the demand elasticity in their area? Question 4 options: The elasticity of demand is 0.5 and its relatively elastic The elasticity of demand is 0.5 and its relatively inelastic none of these answers are accurate The elasticity of demand is 2 and its relatively inelastic The elasticity of demand is 2 and its relatively elasticarrow_forward
- The table above gives the demand schedule for Maritime Museum in Beşiktaş. Calculate the elasticity of demand between $6 and $4?arrow_forwardHomework (Ch 05) The following graph shows the daily demand curve for bikes in Miami. 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. ? 300 275 250 225 200 175 150 A 125 100 75 50 25 77°F Sunny PRICE (Dollars per bike) B Demand a Total Revenue 21 Starrow_forwardYour father owns a tourist site. He currently charges $5 per person who visits the site. Both Ghanaians and foreigners visit the site. The first demand curve is foreigners and the second is for Ghanaians. After your Econs 101 course you have realized that there may be a way to increase total revenue for your father. Using the demand curves below, answer the following questions. What is your father’s current total revenue for the 2 groups? The elasticity of demand is more elastic in which group or market? Which market has the more inelastic demand? 1 mark What is the elasticity of demand between the prices of $5 and $2 in the foreign market? Is this elastic or inelastic? What is the elasticity of demand between $5 and $3 in the Ghanaian market? Is this elastic or inelastic? Given the graphs and what you studied about economics, you recommend to your father to increase the price of foreigners to $8 each and lower the price of a Ghanaians to $3. How much could your father increase total…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Elasticity of Demand- Micro Topic 2.3; Author: Jacob Clifford;https://www.youtube.com/watch?v=HHcblIxiAAk;License: Standard YouTube License, CC-BY