Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 6, Problem 5DQ
To determine
Price discrimination .
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Students have asked these similar questions
Please refer to the table below
Price of
iPhones.
$700.00
$650.00
$500.00
$450.00
$300.00
$275.00
$250.00
$100.00
$50.00
Christy's
Demand
OA) 5
OB) 8
OC) 28
OD) 45
0
1
1
2
4
5
6
7
10
Lori's
Demand.
0
0
1
2
3
4
4
5
Assume that the market for iPhone has only two consumers: Christy and
Lori. According the table above, if the price of an iPhone is $275, the
market will demand
iPhones.
Macy's adopts a 3-period markdown strategy for a skirt with a selling season of 3 months (each month corresponds to a period). Demand for the skirt is 2000 - 50p, where
stands for the unit selling price. Unit prices in different periods are $20, $10, and $5, respectively.
■
What is the total revenue? Complete the table below.
Period Price Total Demand
Purchase in The Period
Cumulative Revenue
$20
2
$10
3
$5
■ If optimal prices in the three periods are used, how would the total revenue change? Complete the table below.
Price
-
EA
EA
$
N
EA
3
Total Demand
Purchase in The Period
Cumulative Revenue
$
$
$
р
"
Back to the original setting, i.e., ignore the price changes you suggest in part b and use the original prices $20, $10 and $5. But now 10% customers
are patient enough to wait one month for the next lower price, even if the current price is below their willingness to pay. Finish the following table to
compute the total revenue.
Period Price Total Demand
1
$20
2
$10
3
$5
Purchase in…
Q2.
Your brother is considering two cell phone providers i.e. UFONE and MOBILINK.
UFONE charges Rs.520 (super card) per month for the service regardless of the number of phone
calls made. MOBILINK does not have a fixed service fee but instead charges Rs. 1 per minute for
calls. Your brother's monthly demand for minutes of calling is given by the equation
Q = 150 - 50P, where P is the price of a minute
a. With each service provider, what is the cost to your brother of an extra minute on the
phone?
b. In light of your answer to (a) part, how many minutes would your brother talk on the
phone with each service provider?
c. How much would he end up paying each provider every month?
Chapter 6 Solutions
Microeconomics
Ch. 6 - Explain why the choice between 1, 2, 3, 4, 5, 6,...Ch. 6 - Prob. 2DQCh. 6 - The income elasticities of demand for movies,...Ch. 6 - Research has found that an increase in the price...Ch. 6 - Prob. 5DQCh. 6 - Suppose that the total revenue received by a...Ch. 6 - Suppose that the total revenue received by a...Ch. 6 - Calculate total-revenue data from the demand...Ch. 6 - Prob. 4RQCh. 6 - 5. In 2006, Willem de Kooning’s abstract painting...
Ch. 6 - Suppose the cross elasticity of demand for...Ch. 6 - Look at the demand curve in Figure 6.2a. Use the...Ch. 6 - Prob. 2PCh. 6 - Graph the accompanying demand data, and then use...Ch. 6 - Danny Dimes Donahue is a neighborhoods 9-year-old...Ch. 6 - What is the formula for measuring the price...Ch. 6 - ADVANCED ANALYSIS Currently, at a price of 1 each,...Ch. 6 - Prob. 7P
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