Reference no: EM13299006
Suppose the demand curves for Cookies and Apples in the city of Mendota are given by: Cookies: P = 110 – Q + I Apples: P = 100 – 0.5Q – 0.5I
where P is dollar price, Q is quantity in units and I is income expressed in thousands of dollars. Let the price of cookies and apples remain constant at $10 per unit for both goods.
(a) Suppose the income in the city of Mendota is $100,000 (I = 100), what is the quantity demanded for cookies and apples?
(b) Suppose the income in the city of Mendota increases to $150,000 (I = 150), what is the quantity demanded for cookies and apples?
(c) What is the income elasticity of demand for both goods when income increases from $100,000 (I = 100) to $150,000 (I = 150)? For each good, what can be concluded in terms of sensitivity to changes in income?
(d) Suppose the income in the city of Mendota is $100,000 (I = 100), does the price of $10 per unit in each good maximize the revenue? If not, propose the price and quantity for each good that maximizes the revenue.
|
Explain what is the mass of this column
: Given a column of air with a pressure of 1.57 x 10^5 Pa and an area of 1.12 m^2 and given that the acceleration due to gravity is 9.8 m/s^2, what is the mass of this column
|
|
Calculate the government revenue consumers tax incidence
: Calculate the government revenue, consumers’ tax incidence, producers’ tax incidence, and deadweight loss in both Beijing and Qingdao due to the excise tax in each city.
|
|
Define a mixture of 0.160 moles of c is reacted moles of o2
: A mixture of 0.160 moles of C is reacted with 0.117 moles of O2 in a sealed 10.0L vessel at 500.K, producing a mixture of CO and CO2. The total pressure is 0.640 atm. What is the partial pressure of CO? 3C + 2O2---> 2CO +CO2
|
|
Entrepreneurial education
: Entrepreneurial education
|
|
Suppose the demand curves for cookies and apples
: where P is dollar price, Q is quantity in units and I is income expressed in thousands of dollars. Let the price of cookies and apples remain constant at $10 per unit for both goods.
|
|
What is crisp required return
: The risk-free rate is 4%, the expected return on the first factor (r1) is 12%, and the expected return on the second factor (r2) is 8%. If bi1= 0.5 and bi2 = 0.8, what is Crisp's required return? Round your answer to two decimal places.
|
|
The marketing team of burton snowboard is analyzing her
: The marketing team of Burton Snowboard is analyzing her demand for two types of snowboard – Professional and Standard models. At Thanksgiving sales, the Professional board is discounted from the original price of $1,000.
|
|
Construct a pro forma balance sheet
: Construct a pro forma balance sheet that indicates the firms optimal capital structure Sheet compare balance sheet the firms current balance sheet. What course of action should the firm take?
|
|
Yips model with graphs and charts.
: A detailed information on yips model with graphs and charts.
|