Question

Given a demand curve for blueberries: Qd = 5,000 – 2,000P, graph the demand curve making...

Given a demand curve for blueberries: Qd = 5,000 – 2,000P, graph the demand curve making sure to label the horizontal axis in 1,000 unit increments (1K, 2K, 3K, etc.) Calculate the total revenue (TR) for each of the 1,000 unit increments on your x-axis and plot a TR curve directly below your demand curve so that the horizontal axes match up. This is called stacking the graphs and is a common technique in economics. Using the midpoint formula (arc elasticity), calculate the price elasticity of demand between each quantity interval on your demand curve (example from 0 to 1,000 units, then from 1,000 to 2,000 units and so on.) Show your calculations. On both of your graphs (demand & TR) provide labels that correspond to type of elasticity you calculated (elastic, unitary elastic or inelastic).

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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 the following schedule represents the demand curve for a non- discriminating, single price monopolist: P...
Suppose the following schedule represents the demand curve for a non- discriminating, single price monopolist: P Q TR MR 18 0 15 1 12 2 9 3 6 4 3 5 0 6 a. Complete the table. b. Plot the demand and MR curves below. c. Explain why the MR of the third unit is less than its price ($9). d. Calculate the Elasticity of Demand at the price of $12? e. Label the elastic, unitary elastic, and inelastic segments...
. Monopoly. Suppose the following schedule represents the demand curve for a non-       discriminating, single price...
. Monopoly. Suppose the following schedule represents the demand curve for a non-       discriminating, single price monopolist:             P          Q         TR       MR             18        0             15        1             12        2             9        3             6        4             3        5             0        6 a.         Complete the table. b.         Plot the demand and MR curves below. c.         Explain why the MR of the third unit is less than its price ($9). d.         Calculate the Elasticity of Demand at the price of...
2. Monopoly. Suppose the following schedule represents the demand curve for a non- discriminating, single price...
2. Monopoly. Suppose the following schedule represents the demand curve for a non- discriminating, single price monopolist: P Q TR MR 18 0 15 1 12 2 9 3 6 4 3 5 0 6 a. Complete the table. b. Plot the demand and MR curves below. c. Explain why the MR of the third unit is less than its price ($9). d. Calculate the Elasticity of Demand at the price of $12? e. Label the elastic, unitary elastic, and...
1) Answer 1-3 based on the Demand curve for normal good X is given by Qd...
1) Answer 1-3 based on the Demand curve for normal good X is given by Qd = 40,000 - 10,000Px The Total revenue (TR) function based on the above demand is TR = 4Q - 0.0001Q2 A) True B) False 2) Based on the above, the Marginal Revenue, MR, function is MR = 4 - 0.0002Q A) True B) False 3) Based on the above, TR is maximized at Q = 20,000 units A) True B) False 4) 55.57% of...
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...
2.)       For a price-searcher, assume the demand curve is Q = 20 - P. a.)       ...
2.)       For a price-searcher, assume the demand curve is Q = 20 - P. a.)        Construct a four-column table of P and Q with P ranging from 20 to 0. Calculate TR and MR and add them to your table. b.)       Graph D and MR. (Plot points—with $ on the vertical axis and Q on the horizontal axis.) c.)        Why is P > MR (after the first unit) 3.)       Using the same price-searcher, assume the firm faces the...
19.   Assume a competitive firm is charging a price of $20 and is selling 275 units....
19.   Assume a competitive firm is charging a price of $20 and is selling 275 units. It has an ATC (incorporating opportunity cost) of $14 per unit. Calculate their level of economic profits. (Hint: Go back to your notes and find the equation for profits...plus in what you know. You have to do some calculations to get tot the answer.) $   20.   If a competitive industry is enjoying economic profits > 0, also called supranormal profits. We learned that in...
An income consumption curve shows what happens to the consumer's consumption of good X as nominal...
An income consumption curve shows what happens to the consumer's consumption of good X as nominal income increases and Group of answer choices the price of X falls. the prices of X and Y stay constant. the price of Y falls. real income stays constant. Flag this Question Question 5 5 pts If you were selling a product in a setting where incomes were rapidly rising, which of the 4 Engel curve slopes listed below would you prefer for your...
The band Atomic Rooster has gotten back together and recorded a new album, "Home To Roost."...
The band Atomic Rooster has gotten back together and recorded a new album, "Home To Roost." Below is demand and supply information at different prices for downloads: PRICE DEMAND SUPPLY $4                    1400    50 8             1150     150 12                   900    250 16                     650 350 20                    400 450 24                     150 550 A) Using excel or done neatly by hand, draw demand and supply curves using the information above. B) Label and state the equilibrium point and explain...
Awesome Apples Orchard sells tree fruit at farm markets. Based on their years of sales experience,...
Awesome Apples Orchard sells tree fruit at farm markets. Based on their years of sales experience, the owners have mapped the demand for apples in the table below, where Price is in $/box (2 lbs) and Quantity refers to boxes of apples sold daily. In particular, they have learned that the Demand for Apples (holding constant other factors) takes the form: QAd= 400 - 40PA For your marketing analysis, please complete the table below. Use the point elasticity formula and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT