Principles Of Microeconomics
7th Edition
ISBN: 9781260111088
Author: Robert H. Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 3.1CC
To determine
Calculation of marginal buyer’s reservation price when 10,000 slices of pizza are sold and quantity demanded at a price of $2.50 per slice.
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According to the graph above, what is the quantity demanded at $80?
Suppose the following table shows your demand schedule for CDs.
Price
Quantity Demanded
$15
1
12
9.
9:56
6.
4
(a) What is your total utility from four CDs?
Total utility: $
(b) What is your marginal utility from the fourth CD?
Marginal utility: $
(c) If the price is $6, how much will your consumer surplus be?
Consumer surplus: $
A demand schedule for a normal good is as follows:
Price Quantity demanded
Rs.230 70
210 90
190 110
170 130
Do you think that the increase in quantity demanded (say, from 90 to 110 in the table) when price decreases (from Rs.210 toRs.190) is due to a rise in consumers’ income? Explain clearly (and briefly) why or why not.
Now suppose that the good is an inferior good. Would the demand schedule still be valid for an inferior good?
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Principles Of Microeconomics
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