The price elasticity of demand

Assignment Help Microeconomics

Reference no: EM13199329

The price elasticity of demand for senior citizens purchasing coffee from McDonald's is -5 while non senior citizens have a price elasticity of demand equal to -1.25. If is cost McDonald's $0.02 to produce a coffee, the optimal price for a cup of coffee for non senior citizens and resultant marginal cost under third-degree price discrimination are

A. $0.004 and $0.02.

B. $0.02 and $0.80.

C. $0.10 and $0.02.

D. $10 and $0.20.

Reference no: EM13199329

Questions Cloud

How long was each storm : Two rainstorms occurred in one week in a certain area. In the first storm 40 ml, of rain fell per hour, and in the second storm, 25 ml of rain fell per hour. Rain lasted for a total of 55 hours, resulting in a total rainfall of 1975 ml . How long ..

Determine who benefits can be tough for negative events : Major events in our country and around the world tend to have economic advantages for some segments of society and disadvantages for others. Determining who benefits can be tough for negative events

Find an expression in terms of for the amount invested : Let denote the amount of money invested at 8. Find an expression in terms of for the amount invested at 6.

Find a function in the variable x giving the cost : Letting x denote the length of one side of the base, find a function in the variable x giving the cost (in dollars) of constructing the box.

The price elasticity of demand : The price elasticity of demand for senior citizens purchasing coffee from McDonald's is -5 while non senior citizens have a price elasticity of demand equal to -1.25.

What is the holding period return to an investor : What is the holding period return to an investor who bought 100 shares of Charter Oil nine months ago for $36 a share, received two $50 dividend checks, and sold the stock today at $38 a share?

Explain when constructing persuasive speech : When constructing your persuasive speech, you should consider the audience's point of view through careful analysis. What should you do if the audience disagrees with your position?

Write a polynomial that gives its area : A Norman window is shaped like a rectangle whose length is twice its width, surmounted by a semi-circle. Write a polynomial that gives its area.

What would it take to reduce the overall demand for gasoline : ut as gasoline prices soar and concern about the environment mounts, the need to conserve gasoline has become increasingly clear. What would it take to reduce the overall demand for gasoline in the United States

User Account

All Pages