Question

1/Consider the demand curve Q=100-50P. Draw the demand curve and indicate which portion of the curve is elastic, which portion is inelastic, and which portion is unit elastic.

2/

Suppose the demand for crossing the Golden Gate Bridge is given by Q=10,000 – 1000P.

If the toll (P) is $3, how much revenue is collected? (15 points)

What is the price elasticity of demand at this point? (10 points)

Could the bridge authorities increase their revenues by changing their price? How? (15 points)

Answer #1

1) Q=100-50P.

P=2-(Q/50)

The point of intersection between the vertical axis and the demand curve is perfectly elastic.

The point of intersection between the horizontal axis and the demand curve is perfectly inelastic.

Exactly middle of the demand curve is unit elastic.

The segment between the price axis intercept and the middle point is relatively elastic. And the segment between the quantity axis and the middle point is relatively inelastic.

Suppose you are in charge of a toll bridge that costs
essentially nothing to operate. The demand for bridge crossings Q
is given by P = 15 − Q/2, where P is the price of the toll and Q is
the number of vehicles crossing the bridge.
(a) (2.5 points) Draw the demand curve for bridge crossings as a
function of the toll price.
(b) (2.5 points) How many people would cross the bridge if there
were no toll?
(c)...

Draw the demand curve of Apple and calculate the price
elasticity for their main product or service. Determine if they
have an elastic or inelastic demand curve.

how
do you draw the demand curve q=250-10p
calculate the price elasticity of demand at prices of $5, $10, and
$15 to show how it changes as you move along this linear demand
curve

For the demand curve Q=50−P, what is the own-price elasticity of
demand when P=16 2/3 (that is, 50/3)? Is demand elastic, inelastic,
or unit elastic at that point?
a) -0.5, inelastic
b) -1, unit elastic
c) -0.5, elastic
d) 33.3, inelastic
e) 33.3, elastic

The table below shows monthly individual consumer demand
schedule for gasoline. Without calculating the price elasticity of
demand coefficients find out on which portion of the curve demand
is elastic and on which portion it is inelastic. Prove the answers
with corresponding calculations in the blank table column below (5
points).
Points
Price/gallon ($)
Qd (gallons)
Corresponding Calculations
A
6
20
B
5
38
C
4
54
D
3
72
E
2
95
F
1
120
Portion AB (underline the...

Given a demand curve of Q=100−4P: 1st attempt Part 1 (1
point)See Hint Calculate the price at which demand is unit elastic.
This price is $ . (Round your answer to two decimal places.)
Part 2 (1 point)See Hint Find the quantity where demand is unit
elastic. This quantity is 25 units . (Round your answer to two
decimal places.)
Part 3 (1 point)See Hint At quantities lower than the value
found in Part 2, the demand curve is Choose...

The table below shows monthly individual consumer demand
schedule for gasoline. Without calculating the price elasticity of
demand coefficients find out on which portion of the curve demand
is elastic and on which portion it is inelastic. Prove the answers
with corresponding calculations in the blank table column
below.
Points
Price/gallon ($)
Qd (gallons)
Corresponding Calculations
A
6
20
B
5
38
C
4
54
D
3
72
E
2
95
F
1
120
Portion AB (underline the appropriate answer):...

Demand elasticity and social loss. Consider two
vaccines for different viruses ? and ?. Assume that the marginal
cost of producing both drugs is constant and that the fixed cost is
small. In other words, assume that the supply curve for both drugs
is flat (horizontal).
Market for Vaccine ? Market for Vaccine ?
Suppose that demand for vaccine ? is price elastic, whereas
demand for vaccine ? is relatively inelastic. Using the graphs
above, draw two demand curves: one...

(60)A perfectly inelastic demand curve has an elasticity
coefficient of:
(a)1
(b)0.25
(c)∞
(d)None of the above
Akal mn wahed
Extra Credit Questions-Optional
(61)If the percentage change in the quantity supplied of
a good is less than the percentage change in price, price
elasticity of supply is:
(a)Inelastic
(b)Perfectly inelastic
(c)Elastic
(d)Unitary elastic
(62)If the percentage change in the quantity demanded of
a good is equal to the percentage change in price, price elasticity
of demand is:
(a)Inelastic
(b)Perfectly inelastic...

Complete Part 1 and 2 below:
Part 1:
Suppose the market demand curve for a product is given by
Q=800-10P. Which statement is true?
the demand for this product is unit-elastic when P=30
more than one of the other options
the price elasticity of demand for this product can be written
as a function of P
the price elasticity of demand for this product is a
constant
Part 2:
Suppose the market demand curve for a product is given by...

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