Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 4, Problem 2QE
(a)
To determine
Determination of market
(b)
To determine
Illustration of individual and market demand curve.
(c)
To determine
Explain the changes in market demand if the current market price is $4 and increases to $8.
(d)
To determine
Effect of advertising in individual and market demand curve.
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You are the manager of a firm that receives revenues of $40,000 per year from product X and $70,000 per year from product Y. The
own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is 1.6.
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?
Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (-) sign.
$
You are the manager of a firm that receives revenues of $20,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is −3, and the cross-price elasticity of demand between product Y and X is −1.6.How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (−) sign.
$ _____________
Individual and market demand
Suppose that Sean and Yvette are the only consumers of ice cream cones in a particular market. The following table shows their monthly demand schedules:
Price
Sean’s Quantity Demanded
Yvette’s Quantity Demanded
(Dollars per cone)
(Cones)
(Cones)
1
8
16
2
6
12
3
4
8
4
2
6
5
0
4
On the following graph, plot Sean’s demand for ice cream cones using the green points (triangle symbol). Next, plot Yvette’s demand for ice cream cones using the purple points (diamond symbol). Finally, plot the market demand for ice cream cones using the blue points (circle symbol).
Note: Line segments will automatically connect the points. Remember to plot from left to right.
Sean’s DemandYvette’s DemandMarket Demand048121620246543210PRICE (Dollars per cone)QUANTITY (Cones)
Chapter 4 Solutions
Microeconomics
Ch. 4.1 - Prob. 1QCh. 4.1 - Prob. 2QCh. 4.1 - Prob. 3QCh. 4.1 - Prob. 4QCh. 4.1 - Prob. 5QCh. 4.1 - Prob. 6QCh. 4.1 - Prob. 7QCh. 4.1 - Prob. 8QCh. 4.1 - Prob. 9QCh. 4.1 - Prob. 10Q
Ch. 4 - Prob. 1QECh. 4 - Prob. 2QECh. 4 - Prob. 3QECh. 4 - Prob. 4QECh. 4 - Prob. 5QECh. 4 - Prob. 6QECh. 4 - Prob. 7QECh. 4 - Prob. 8QECh. 4 - Prob. 9QECh. 4 - Prob. 10QECh. 4 - Prob. 11QECh. 4 - Prob. 12QECh. 4 - Prob. 13QECh. 4 - Prob. 14QECh. 4 - Prob. 15QECh. 4 - Prob. 16QECh. 4 - Prob. 17QECh. 4 - Prob. 18QECh. 4 - Prob. 19QECh. 4 - Prob. 20QECh. 4 - Prob. 21QECh. 4 - Prob. 22QECh. 4 - Prob. 23QECh. 4 - Prob. 24QECh. 4 - Prob. 1QAPCh. 4 - Prob. 2QAPCh. 4 - Prob. 3QAPCh. 4 - Prob. 4QAPCh. 4 - Prob. 5QAPCh. 4 - Prob. 6QAPCh. 4 - Prob. 1IPCh. 4 - Prob. 2IPCh. 4 - Prob. 3IPCh. 4 - Prob. 4IPCh. 4 - Prob. 5IP
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