Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 4, Problem 12APA
(a)
To determine
Changes in revenue.
(b)
To determine
Maximum revenue.
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Students have asked these similar questions
6. Elasticity and total revenue
The following graph shows the daily demand curve for bikes 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.
120
110
Total Revenue
100
90
80
70
60
40
A
30
20
10
Demand
16
24
32
40
48
56
64
72
80
88
96
QUANTITY (Bikes)
PRICE (Dollars per bike)
50
PRICE (Yen per gram)
100
90
80
70
60
40
30
20
10
0
0
0
Demand
+
20 40 60 80 100 120 140 160 180 200
QUANTITY (grams of uff per month)
Graph Input Tool
Demand for Uff
Price of Uff
(Yen per gram)
to eat my uff this morning, but there wasn't any
Quantity
Demanded
DEMAND SHIFTERS
Average Income
-(Yen per month)
Price of Tulg
(Yen per gram)
Price of Snick
(Yen per gram)
Of
Suppose that the price of a gram of uff decreased from 50 yen to 40 yen. This would cause a
an increase in
50
100
100
20
50
Plug any value lower than the current number into the Average Income box. A decrease in average income causes a leftward
the demand curve.
the demand curve and therefore
When the prices of tulg or snick change, there is a shift of the demand curve for uff. The directions of these changes imply that snick and uff are
, and that tulg and uff are
. For example, a Hermetian might say, "I went
in my fridge. So instead of having uff for breakfast, I ate some
Problem The average of price of Guess bag is 45 KD, the average price of Louis Vuiton bag is 2500KD. Use the Supply and Demand to Analyze why the price of these two bags are different.
Chapter 4 Solutions
Macroeconomics
Ch. 4.1 - Prob. 1RQCh. 4.1 - Prob. 2RQCh. 4.1 - What makes the demand for some goods elastic and...Ch. 4.1 - Prob. 4RQCh. 4.1 - Prob. 5RQCh. 4.2 - Prob. 1RQCh. 4.2 - Prob. 2RQCh. 4.2 - What does the cross elasticity of demand measure?Ch. 4.2 - Prob. 4RQCh. 4.3 - Prob. 1RQ
Ch. 4.3 - Prob. 2RQCh. 4.3 - Prob. 3RQCh. 4.3 - Provide examples of goods or services whose...Ch. 4.3 - Prob. 5RQCh. 4 - Rain spoils the strawberry crop, the price rises...Ch. 4 - Prob. 2SPACh. 4 - Prob. 3SPACh. 4 - Prob. 4SPACh. 4 - Prob. 5SPACh. 4 - Prob. 6SPACh. 4 - Prob. 7SPACh. 4 - Prob. 8SPACh. 4 - The table sets out the supply schedule of jeans....Ch. 4 - Prob. 10APACh. 4 - The figure shows the demand for DVD rentals. a....Ch. 4 - Prob. 12APACh. 4 - Prob. 13APACh. 4 - Prob. 14APACh. 4 - Prob. 15APACh. 4 - Prob. 16APACh. 4 - Prob. 17APACh. 4 - Prob. 18APACh. 4 - When Alexs income was 3,000, he bought 4 bagels...Ch. 4 - Prob. 20APACh. 4 - Prob. 21APACh. 4 - Prob. 22APACh. 4 - The table sets out the supply schedule of...Ch. 4 - Prob. 24APACh. 4 - Prob. 25APACh. 4 - Prob. 26APACh. 4 - Prob. 27APA
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- In the given supply schedule, make a supply curve and reflect the following situations by making the curve. Draw also the demand curve to determine the equilibrium. Mark the equilibrium price Situation Price (P) Quantity (Q) A 650 6000 550 5000 450 4000 D 350 3000 E 250 2500 F 150 2000arrow_forwardDemand schedule and supply schedule Price Quantity Demanded Quantity Supplied $ 6 68 28 $10 20 40 a)Using the demand schedule below, write down quantity demanded as a function of price.Using the supply schedule below, write down quantity supplied as a function of price. b)Find equilibrium price and equilibrium quantity. c)Find price elasticity of supply when price changes from $6 to $10. Find price elasticity ofsupply when price changes from $10 to $16.arrow_forwardPlease no written by hand solution Which of the following factors does not affect the price elasticity of demand? A. Share of the good in the budget B. Number of consumers in the market C. Availability of substitutes D. Market level vs. Brand level definitionarrow_forward
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