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A golf course operator must decide what green fees (prices) to set on rounds of golf. Daily demand during the week is: PD=36-QD/10 where QD is the number of 18-hole rounds and PD is the price per round. Daily demand on the weekend is PW=50-QW/12. As a practical matter, the capacity of the course is 240 rounds per day. Wear and tear on the golf course is negligible.
Can the operator profit by charging different prices during the week and on the weekend? Explain briefly. Illustrate what greens fees should the operator set on weekdays and how many rounds will be played? On the weekend?
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congress decides to reduce our dependence on foreign oil by imposing a $.50 tax on each gallon of gasoline at the pump. Elucidate briefly what kind of supply and demand elasticity for gasoline must be present in the U.S. market, in order for this..
Elucidate how on your diagram also calculate the profit maximizing output also price. Calculate the consumer surplus at the profit maximizing price also quantity.
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