Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 1.A, Problem 4SPA
To determine
Graphical illustration of the relationship between revenue received from theaters and number of theaters.
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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 scooter)
TOTAL REVENUE (Dollars)
195
180
165
910
150
1130
800
1020
090
135
580
120
470
105
360
On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $30, $45, $60, $75, $90,
$105, and $120 per scooter.
250
75
140
60
45
30
15
0
Demand
03 6 9 12 15 18 21 24 27 30 33 36 39
QUANTITY (Scooters)
0 15 30 45
Total Revenue
60 75 90 105 120 125 150 165 180 195
PRICE (Dollars per scooter)
A
Total Revenue
?
(?)
According to the midpoint method, the price elasticity of demand between points A and B is approximately
Suppose the price of scooters is currently $30 per scooter, shown as point B on the initial graph. Because the demand between points A and B is
in total revenue per week.
a $15-per-scooter increase in price will lead to
In general,…
[2nd_itemEF] *problem situation in the photo below*
Required:
Derive the demand curve formula.
Derive the inverse demand formula.
Microeconomics
Assignment 5 Elasticity and its Application [10 points]
Johnson & Johnson recently reduced the price of "Generic A" from $100 to $60 in New Jersey
area market and enjoyed a resulting increase in sales from 600 to 1800 units per day. Sales of
"Generic B" also increased from 300 to 1500 units per day.
1
Calculate the arc-price elasticity of demand for Generic A. You also need to interpret the
elasticity.
2
Calculate the arc-cross-price elasticity of demand for Generic B. You also need to interpret the
elasticity.
3
Is Generic B a "complement" or a "substitute"?
Chapter 1 Solutions
Macroeconomics
Ch. 1.1 - Prob. 1RQCh. 1.1 - Prob. 2RQCh. 1.1 - Prob. 3RQCh. 1.2 - Prob. 1RQCh. 1.2 - Prob. 2RQCh. 1.3 - Prob. 1RQCh. 1.3 - Prob. 2RQCh. 1.3 - Prob. 3RQCh. 1.3 - Prob. 4RQCh. 1.3 - Prob. 5RQ
Ch. 1.4 - Prob. 1RQCh. 1.4 - Prob. 2RQCh. 1.4 - Prob. 3RQCh. 1.4 - Prob. 4RQCh. 1.5 - Prob. 1RQCh. 1.5 - Prob. 2RQCh. 1.5 - Prob. 3RQCh. 1.A - Prob. 1RQCh. 1.A - Prob. 2RQCh. 1.A - Prob. 3RQCh. 1.A - Prob. 4RQCh. 1.A - Prob. 5RQCh. 1.A - Prob. 6RQCh. 1.A - Prob. 7RQCh. 1.A - Prob. 8RQCh. 1.A - Prob. 9RQCh. 1.A - Prob. 10RQCh. 1.A - Prob. 11RQCh. 1.A - Prob. 1SPACh. 1.A - Prob. 2SPACh. 1.A - Prob. 3SPACh. 1.A - Prob. 4SPACh. 1.A - Prob. 5SPACh. 1.A - Prob. 6SPACh. 1.A - Prob. 7SPACh. 1.A - Prob. 8SPACh. 1.A - Prob. 9SPACh. 1.A - Prob. 10SPACh. 1.A - Prob. 11SPACh. 1.A - Prob. 12APACh. 1.A - Prob. 13APACh. 1.A - Prob. 14APACh. 1.A - Prob. 15APACh. 1.A - Prob. 16APACh. 1.A - Prob. 17APACh. 1.A - Prob. 18APACh. 1.A - Prob. 19APACh. 1.A - Prob. 20APACh. 1.A - Prob. 21APACh. 1.A - Prob. 22APACh. 1.A - Prob. 23APACh. 1 - Prob. 1SPACh. 1 - Prob. 2SPACh. 1 - Explain how the following news headlines concern...Ch. 1 - Prob. 4SPACh. 1 - Prob. 5SPACh. 1 - Prob. 6SPACh. 1 - Prob. 7APACh. 1 - Prob. 8APACh. 1 - Prob. 9APACh. 1 - Prob. 10APACh. 1 - Prob. 11APACh. 1 - Prob. 12APACh. 1 - Prob. 13APA
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