Question

1/Consider the demand curve Q=100-50P. Draw the demand curve and indicate which portion of the curve...

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)

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose you are in charge of a toll bridge that costs essentially nothing to operate. The...
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)...
Given a demand curve of Q=100−2P. 1.Calculate the price at which demand is unit elastic. This...
Given a demand curve of Q=100−2P. 1.Calculate the price at which demand is unit elastic. This price is___ (Round your answer to two decimal places.) 2. Find the quantity where demand is unit elastic. This quantity is___ (Round your answer to two decimal places.) 3.At quantities lower than the value found in Part 2, the demand curve is Choose one: A. perfectly elastic. B. relatively elastic. C. relatively inelastic. D. perfectly inelastic. 4.At quantities higher than the value found in...
Draw the demand curve of Apple and calculate the price elasticity for their main product or...
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...
how do you draw the demand curve q=250-10p calculate the price elasticity of demand at prices of $5, $10, and $15 to show how it changes as you move along this linear demand curve
For the demand curve Q=50−P, what is the own-price elasticity of demand when P=16 2/3 (that...
For the demand curve Q=50−P, what is the own-price elasticity of demand when P=16 2/3 (that is, 50/3)? Is demand elastic, inelastic, or unit elastic at that point? a) -0.5, inelastic b) -1, unit elastic c) -0.5, elastic d) 33.3, inelastic e) 33.3, elastic
The table below shows monthly individual consumer demand schedule for gasoline. Without calculating the price elasticity...
The table below shows monthly individual consumer demand schedule for gasoline. Without calculating the price elasticity of demand coefficients find out on which portion of the curve demand is elastic and on which portion it is inelastic. Prove the answers with corresponding calculations in the blank table column below (5 points). Points Price/gallon ($) 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...
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...
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...
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...
(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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT