Suppose that at the equilibrium price and quantity

Assignment Help Business Economics

Reference no: EM131244680

Suppose that at the equilibrium price and quantity, the marginal revenue is -$36 and the price elasticity of demand for a linear demand function is -0.67 Then we know that the equilibrium price is:

Reference no: EM131244680

Questions Cloud

Hitlers invasion afterwards as subgame perfect equlibrium : The Diagram captures the situation in 1938. Chamberlain assesses the propability of hitler being amicable as p and that of him being beligerant as 1-p. Derive the condition on p that would support the signing of the Munich agreement and hitlers invas..

Two inputs in the production function-labor and capital : Suppose there are two inputs in the production function, labor and capital, and these two inputs are perfect substitutes. The existing technology permits one machine to do the work of three workers. That is, you can produce one unit of output using e..

How unemployment rates and levels of disposable income : How interest rates, inflation rates and gross domestic product in France influence blades & razors market for men in France ? How unemployment rates and levels of disposable income in France make an impact on blades & razors market for men in France ..

Indifference curve mapping-derive compensated demand curve : Using an indifference curve mapping, derive a compensated demand curve. When considering the welfare implications of a price change, why should an economist technically measure consumer surplus as the area under the compensating demand curve, rather ..

Suppose that at the equilibrium price and quantity : Suppose that at the equilibrium price and quantity, the marginal revenue is -$36 and the price elasticity of demand for a linear demand function is -0.67 Then we know that the equilibrium price is:

Draw persons budget constraint with the income guarantee : Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. Draw the person’s budget constraint with the income guarantee. Be sure to place..

Change your manufacturing process and raise your price : Suppose you know you are selling a plastic toy that could be potentially harmful to children, but the cost of creating a safer toy would more than double its retail price. If consumers are willing to buy the existing product should you change your ma..

Novel translated into english is perfectly inelastic : Suppose the demand for a Czech novel translated into English is perfectly inelastic. Assume the initial price of the translated novel is ?$21.00 and the quantity demanded is _______ copies per year. If the price of the translated novel increases by ?..

What is the price elasticity of supply between these prices : Consider the market for a natural resource, where the price is initially $20,000 per ton and 10,000 thousand tons are supplied. Suppose the price of the resource falls to $19,500 per ton, at which price the market supplies 8,000 thousand tons. What i..

User Account

All Pages