Demand curve to estimate the consumer surplus, Operation Management

Demand curve to estimate the consumer surplus:

Adam's demand curve for commodity X is: XA = 10 - 2Px . Betty's demand curve for commodity X is: XB = 10 - 3Px .

(a) What is the market demand curve for commodity X.

(b) Draw the three demand curves on one graph and compare their slopes.

(c) Assume that the market price of commodity X is $2 per unit. Calculate the point price elasticity of demand for two individual demand curves and for the market demand curve.

(d) If the price is increased slightly from $2, what will happen to the total expenditure on commodity X by Adam and Betty?

(e) Use the market demand curve to estimate the consumer surplus at price equal to $2.

Posted Date: 2/25/2013 3:12:01 AM | Location : United States







Related Discussions:- Demand curve to estimate the consumer surplus, Assignment Help, Ask Question on Demand curve to estimate the consumer surplus, Get Answer, Expert's Help, Demand curve to estimate the consumer surplus Discussions

Write discussion on Demand curve to estimate the consumer surplus
Your posts are moderated
Related Questions
Quantitative Versus Qualitative Measurements A variety of formulae can be used to determine productivity as illustrated. These are generally referred to as 'hard' or quantifia

Briefly explain the management implications of information technology

A risk of disciplining employees is that some employees retaliate. To avoid that risk, what organizational policies might encourage low-performing employees to leave while encourag

1 Page maximum for the whole question] : College students are "invincible". They study on the floor, spread their materials on the floor and lean over to access them, slouch in a c

An 8 hours work measurement  study  in a plant reveals the following : Units  produced= 320 nos. Idle  time = 15%  performance rating-= 120% . allowances  = 12% of normal  time. De

Question 1: "Yield management guides the decision of how to allocate undifferentiated units of capacity to available demand in such a way as to maximize profit or revenue." Cri

In the precedence chart to the right, times are in seconds. 1 Assume that the plant runs one 7.5 hour shift per day and the assembly line is designed with 5 stations (one worker pe

Why do organizations need to calculate a threshold for a reorder? How could this affect sales?

Scope of Production and Operation Management Production management mainly associated with the factory management as the problem of production crept with the development of facto

3,000 widgets must be machined on workstation during week. Each widget is identical and requires a machining cycle time (Tc) of 36.5 minutes. All of the machining centres in the sh