Demand curve to estimate the consumer surplus, Operation Management

Assignment Help:

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.


Related Discussions:- Demand curve to estimate the consumer surplus

Draw a chart by writing operations management, Create a chart by writing "o...

Create a chart by writing "operations management" and "business strategy" beside each other and leaving room between the headings to draw/write. Using arrows to designate direction

Explain how would you overcome these challenges, Describe some of the chall...

Describe some of the challenges of implementing a continuity strategy for an organization. How would you overcome these challenges? What risks do you run by not implementing

Expensive car you can afford if you finance it for months, You have saved $...

You have saved $5000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan would have a 10% APR based on the end of month payments. What is

Explain what are average weekly total costs, Given the following data for a...

Given the following data for a particular inventory item: Usage 500 units/week Ordering $40 per order Carrying Cost $.01 per unit per week Lead Time 3 weeks Price $.50 per unit a.

Explain companies choose not to tie resources to their job, Some companies ...

Some companies choose not to tie resources to their projects. In what ways does this benefit a project? In what ways does this hinder a project?

Reference Book, Hello Sir, This is Riddhi Trivedi I, am Faculty of Commerge...

Hello Sir, This is Riddhi Trivedi I, am Faculty of Commerge and Management. Subject is there Materials & Production Management, but i want a perfect reference book where i get all

What kinds of goals will donna likely make, Donna Hamilton is excited to op...

Donna Hamilton is excited to open her own restaurant, the Westminster Inn. Although Donna has worked as a chef and even managed a number of restaurants during her career, she is co

Explain e-activity evaluate the lessons, From the e-Activity, evaluate the ...

From the e-Activity, evaluate the lessons learned in this chapter to determine which single lesson would be most beneficial to the company you researched. Provide specific examples

Explain what do you think is the best approach to use, In considering emplo...

In considering employee recruitment in your own business, what do you think is the best approach to use? Why do you think that is the best approach?

Write Your Message!

Captcha
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