+1-415-670-9189
info@expertsmind.com
What is the new inverse demand function
Course:- Microeconomics
Reference No.:- EM13697430




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

The typical demand function of match tickets of FC Barcelona is q (p) = 200.000- 10.000p. The goal of managers is to maximize their revenue. The total capacity of the stadium is 100.000 viewers.

a) Write the inverse demand function.

b) Write expressions for the Total Income (I) and the Marginal Revenue (Img) as functions of the total number of tickets sold.

c) What price will generate the most revenue? What amount of tickets will be sold at this price?

d) Selling the amount of the previous section, what is marginal revenue? What is the price elasticity of demand for tickets? Is the stadium full?

Due to the current good luck of the team, the demand for tickets has increased and has become q (p) = 300.000-10.000p.

e) What is the new inverse demand function?

f) Write an expression for marginal revenue as a function of the number of entries.

g) Ignoring stadium capacity, what price will generate the most income? How many tickets would be sold at this price?

h) Taking now into account the capacity of the stadium, how many tickets will go on sale to maximize revenue? At what price?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Suppose MPC=0.75 and the government pay for the new spending of 100,000 by increasing taxes by 100,000. Calculate the new Y. Could you provide the answer with specific formu
Draw a supply/demand graph of the product. It must be created by you, not lifted off of the internet of copied from another student. It's OK to hand draw and send a photo or
For the term paper, you are required to pick a current economic topic that relates to the material we have covered or will cover in this course. You will research and find a
Does the principle of “increasing opportunity cost” hold in this nation? Explain briefly. (Hint:What happens to the opportunity cost of bread—measured in number of ovens—as br
Suppose that after the wage goes up in the Northern state, workers lose their jobs in the North and decide to move to the Southern state. This increases the population there.
Now suppose the public good technology has constant returns to scale, at a rate of two units of the private good per unit of the public good. What is the Walrasian equilibri
You are a Custom Home Builder and was hit hard by the economic downfall of 2008 in the housing market. You have a 100-acre subdivision with $19,000 a month payments on a land
Suppose the average value that a person in a certain city places on having 1000 extra police of?cers out on the streets for a year is $10. Some people have a higher value an