Draw a graph that shows her change in consumer surplus

Assignment Help Econometrics
Reference no: EM131145775

Consumer Compensation. Consider the story of Coca-Cola and the scoreboard in the chapter. Your job is to fully compensate each student for the cost associated with the soft-drink monopoly. Suppose CocaCola increased the price of soft drinks by $0.20 per can and each student consumed 10 soft drinks before the monopoly was granted.

a. Kate continues to buy 10 soft drinks at the higher price. What is the appropriate compensation for her?

b. Elise buys only 4 soft drinks at the higher price. Her demand curve is linear. What is her appropriate compensation? Draw a graph that shows her change in consumer surplus.

Reference no: EM131145775

Questions Cloud

Review article - harnessing the power of corporate culture : Review assigned article, "Harnessing the Power of Corporate Culture (Developing Leaders for a Sustainable Global Society)". Consider the "new model of leadership" discussed in the article
Compute the profit-maximizing price and quantity : Compute the profit-maximizing price and quantity, and illustrate with a complete graph.
What is the probability that the customer can drive : A particular customer lives 25 minutes from Collina's Italian Café. If the customer places a telephone order at 6:00 P.M., what is the probability that the customer can drive to the café, pick up the order, and return home by 7:00 P.M.?
Identify which accounts should be closed on september 30 : Prepare an income statement and a retained earnings statement for the 3 months ending September 30 and a classified balance sheet at September 30.
Draw a graph that shows her change in consumer surplus : Elise buys only 4 soft drinks at the higher price. Her demand curve is linear. What is her appropriate compensation? Draw a graph that shows her change in consumer surplus.
What is the probability of completing the exam in one hour : a) What is the probability of completing the exam in one hour or less? b) What is the probability that a student will complete the exam in more than 60 minutes but less than 105 minutes? c) Assume that the class has 60 students and that the examinati..
Prepare an income statement and a retained earnings : Prepare an income statement and a retained earnings statement for the month ofMay and a classified balance sheet at May 31.
Create a multi-level work breakdown structure : Create a multi-level work breakdown structure (WBS) and detailed project schedule, using the information from the "Greendale Stadium Case" (The Case Study is below) incorporating the following constraints
What is the estimated regression equation : What is the correlation coefficient of the model? What is the correlation of determination? What is the estimated regression equation?

Reviews

Write a Review

Econometrics Questions & Answers

  Calculate accounting profits and economic profits for john

John runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth)

  What is the minimum internal rate of return

company is currently considering the following possible projects (which are NOT mutually exclusive). You have a budget limitation of $400,000. What is the minimum internal rate of return that a NEW project (in addition to these) would need to ea..

  Find the p-value of the test

A manufacturer producing ball bearings claims that the mean weight of ball bearings produced is 5 ounces. The distribution is known to be normal with standard deviation 0.1 ounces. A random sample of 16 ball bearings is taken and their mean weight..

  What are the major components of government outlays

What are the major sources of government revenues? How does the composition of the Federal government's outlays and revenues differ from that of state and local governments?

  How can the website of the organization support them

How can the website of the organization support them - How are you going to maintain your competitive advantage?

  Calculate the amount of the change in the equilibrium level

Using your answer to question above, compute the value of the multiplier. Using your answer to the question above, calculate the amount of the change in the equilibrium level of Real GDP due to a $100 increase in investment expenditures.

  Determine what would be the maximum interest rate

A. If the interest rate is 35%, what is the maximum you can spend in the current period B. If the interest rate was lower, you probably would be able to spend more than that. What would be the maximum interest rate that would allow you to spend $2..

  Select the preferred design for the project

The Fox River is boarded on the east by Illionis Route 25 and on the west by Illionis Route 31. along one stretch the of river, there is a distance of 16 miles between adjacent crossings. An additional crossing in this area has been proposed, and ..

  Why the price of dvds is unchanged

Suppose that the current market price of VCRs is $300, that average consumer disposable income is $30,000, and that the price of DVD players (a substitute for VCRs) is $500. Under these conditions annual U.S. demand for VCRs is 5 million per year.

  Determine what interest is paid in the last month

A newly graduated engineer bought furniture for $900 from a local store. Monthly payments for l year will be made. Interest is computed at a nominal rate of 6%. What interest is paid in the last month.

  What is the deadweight loss from monopoly power

Dayan's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C = 100 - 5Q + Q2, and demand is P = 55 - 2Q. a. What price should DD set to maximize profit? What output does the firm produce

  What is the implied slope

If you have taken a statistics class, use EXCEL or a statistical program in order to run the following regression:

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd