User Account

All Pages

Calculate consumer surplus at the revenue-maximizing price

Assignment Help Microeconomics
Reference no: EM132136746

Question: The demand for imported Honda automobiles is given by the following equation:

QH = 1200 - 20PH + 10PC + 200PG

The price of Hondas, PH   = 60, the price of Chevrolets, PC = 70, and the price of gasoline, PG = 1.5.

(a) Calculate the point elasticity of demand for Hondas with respect to its own price, the price of Chevrolets, and the price of gasoline.

(b) For each of Chevrolets and gasoline, is it a substitute or complement for Hondas?

(c) Calculate consumer surplus at the revenue-maximizing price for Hondas.

(d) If the cost per Honda is 50 and the Honda importing agency behaves as a monopolist, how many will be imported and at what price will they sell?

(e) Redo part (d) on the assumption gasoline price rises to PG = 2.5.

Reference no: EM132136746

Questions Cloud

How does the restriction affect the price : There are five horseracing tracks in Kentucky. The Kentucky legislature allows only one track to be open at a time. How does this restriction affect the price.
How should the supply of shoes be allocated : Suppose the domestic shoe company has a maximum capacity of 50,000 pairs of running shoes and 50,000 pairs of tennis shoes in total of which 45,000 pairs.
What is the output of pages per worker : A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers and output increased.
How do your results affect business operations : What do you propose? Management will not only want to understand what you have discovered; they will want to know what you propose as a solution.
Calculate consumer surplus at the revenue-maximizing price : Calculate the point elasticity of demand for Hondas with respect to its own price, the price of Chevrolets, and the price of gasoline.
Build a win-based system or a web-based system : Assume you have been selected to build a system for Oil&Gas company. Do you prefer to build a win-based system or a web-based system? Why?
Is there any drawbacks to hashing : Is there any drawbacks to hashing? What is hash value and why do you think that it is important
Describe disciplined imagination : Explain the concepts of pushing technology barriers, and identifying valuable information? Describe disciplined Imagination?
Why is the fed now focusing on raising them : After indicating in December that further increases in the federal funds rate are likely in 2017, why has the Fed decided not to raise interest rates at two.

Reviews

Write a Review

Microeconomics Questions & Answers

  Evaluate the riskiness of a security

Discussion question: How would you evaluate the riskiness of a security? It has to be a 1400 - to 1700 words and 5 references not from blog, wiki, etc

  Eaw method to decide which machine is better

Let NA = 8 years.  The company is expected to be in this business for a long time and it is expected that there will be very little change in technology. To use either the EAW or the PW method to decide which machine is better, what assumption will b..

  Political-social and technological and a product category

Select one of the microenvironments of marketing described in the lecture, such as demographic, cultural, economic, political, social, and technological, and a product category.

  What was the response of the fed bank reserve

What was the response of the fed bank reserve to the grate recession and did it work?

  How organisational structure and physical structure relate

How does organisational structure and physical structure relate to issues of power, control and resistance? Physical structure is intimately linked to organisational identity and culture. Discuss.

  Write down the major characteristics of pure monopoly

what are the major characteristics of pure monopoly? what are the major barriers to entry that explain the existence

  Estimate the wine equation through the given period

On March 4, 1990, the New York Times reported "Wine Equation Puts Some Noses Out of Joint." In this problem you will estimate an equation that predicts.

  In what circumstances do you believe this is a beneficial

There is a debate about whether sterile hypodermic needles should be passed out free of charge in cities with high drug use. Proponents argue that doing so will reduce the incidence of diseases, such as HIV/AIDS, that are often spread by needle shari..

  Cost and perfect competition1 if a perfectly competitive

cost and perfect competition1. if a perfectly competitive firm produces goods with the following technology y min 2x1

  How much does perception factor into leadership

How does Path-Goal create the potential for what Meindl and Collinson caution against? How much does perception factor into leadership? How can you remove perception from leadership (weigh the pros and cons of doing so)?

  Illustrate the effect of the given news story

In the following figure, shift the appropriate curves to illustrate the effect of the following news story: Chinese factory sells poisonous dog food.

  Translate into graph

2. The purpose of this exercise is to acquaint you with some simple mathematical relationships and how they translate into graph. Economic models can come under the form of equation such as Y=F(L), Y is depandent variable, L is indepandent variable, ..

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