User Account

All Pages

Calculate consumer surplus and producer surplus

Assignment Help Business Economics
Reference no: EM132789940

1. In his article on Super Bowl pricing, Rishe writes: "Generally speaking,academic investigations of sports ticket pricing have found that professional sports teams typically price their inventory in the inelastic portion of their demand functions." Why would teams charge ticket prices in the inelastic range?

2. Explain why the cross-price elasticity of demand can be a positive or a negative number. Give an example of products whose coefficient of price elasticity of demand would positive.

3. Suppose a demand function is given by, Qd = 60 - 4P. Using the midpoint formula, what is the price elasticity of demand between: (a) $11 and $9; (b) $7 and $5?

4. "Successful advertising makes demand for the product more price elastic." Do you agree or disagree? Explain.

5. Suppose the supply of milk and the demand for milk are given by: Qs = 10 + 2P and Qd = 30 - 3P, respectively. (P is price.)

(a) Calculate consumer surplus and producer surplus at equilibrium.

(b) Suppose a price floor is set at P = 5 and the government buys the surplus. Calculate the new consumer surplus and producer surplus.

Reference no: EM132789940

Questions Cloud

How much total interest revenue will comfort shoes recognize : The terms are 12 months and 8% annual interest. How much total interest revenue will Comfort Shoes recognize for the year ended December 31, 2017?
Draw a graph of the marginal cost curve : Let's pretend the market for Soda is for all intents and purposes a monopoly in our fictional country the Republic of Stark. Stark soda has an overwhelming mark
What is university h new profit at the equilibrium : Imagine a university H that is the monopoly in the market for art degrees, with cost function C(Q) = 25Q^2 + 360. Imagine the inverse demand function
What is the balance of accounts receivable at december : What is the balance of Accounts Receivable at December 31, 2017? Customer accounts written off as uncollectible during 2017 $8,000
Calculate consumer surplus and producer surplus : Suppose a price floor is set at P = 5 and the government buys the surplus. Calculate the new consumer surplus and producer surplus.
What changes would you recommend ?and why : GDP is the sum of all income earned in a country during a year.?Alternatively,?it can be thought of as the value of all production in an economy during a year.
What effect will write-off have on quaint : What effect will this write-off have on Quaint's 2017 net income and balance sheet totals assuming the allowance method is used to account for bad debts?
Explain what motivates you to make the choices : To what extent do you personally make purchasing choices based on a company's social responsibility, brand, or reputation? Explain what motivates you to make.
How to determine the corporation taxable income : The firm sold stock that had been owned for 2 years for $40,000; the original cost of the stock was $30,000. How to determine the corporation's taxable income

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd