A study of a country's colleges and universities resulted in the demand equation q = 20,000 - 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges. Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 7,900 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? [Hint: See Example 3.] equilibrium tuition price consumers' surplus producers' surplus total social gain p = s CS = $ PS = $ S

A study of a country's colleges and universities resulted in the demand equation q = 20,000 - 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges. Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 7,900 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? [Hint: See Example 3.] equilibrium tuition price consumers' surplus producers' surplus total social gain p = s CS = $ PS = $ S

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 1E: For each of the determinants of demand in Equation 2.1, identify an example illustrating the effect...

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(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?
A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 5,200 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? HINT [See Example 3.] equilibrium tuition price p = $ consumers' surplus CS = $ producers' surplus PS = $ total social gain $
A study of a country's colleges and universities resulted in the demand equation q = 20,000 - 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.t Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by g = 7,700 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? HINT [See Example 3.] equilibrium tuition price p = $ consumers' surplus CS = $ producers' surplus PS = $ total social gain $
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A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 10,000 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? equilibrium tuition price p = $ consumers' surplus CS = $ producers' surplus PS = $ total social gain $
The coconut oil demand function (Buschena and Perloff, 1991) is Q = 1,200 -9.5p + 16.2pp +0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, pp is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 45¢ per pound, pp is 31¢ per pound, and Q is 1,322 thousand metric tons per year. Calculate the income elasticity of demand for coconut oil. The income elasticity of demand for coconut oil is (Enter a numeric response using a real number rounded to three decimal places.)
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Consider the demand function for processed pork in Canada, Q = 171 - 20p + 20p, + 3p, + 0.002Y where Q is the quantity of pork demanded (measured in millions of kg per year), p is the price of pork, Ph is the price of beef, Pc is the price of chicken, and Y is the income of consumers. If per capita income, Y, increases by $180 a year, then the quantity demanded changes by million kg. per year. (Enter a numeric response using a real number rounded to two decimal places.) 30 tv MacBook Air 80 DII DD esc F1 F2 F3 F4 F6 F7 F8 F9 F10 FY @ $ & 1 4 7 8 9 %3D Q W E R Y tab A D F H J K L * 3
Given below is the demand function for coconut oil. Q = 1,200 – 9.5P + 16.2Pp + 0.2 Y Where Q = quantity demanded of coconut oil P = price of coconut oil in cents per pound Pp = price of palm oil in cents per pound (palm oil is a substitute for coconut oil) Y = income of consumers Initially, Q = 1,275 thousand metric tons per year (Q = 1275) P = 45 cents per pound (P = 45) Pp = 31 cents per pound (Pp = 31) (a) Please calculate the Income at the above values of Q, P and Pp. and show your calculations (b) Please calculate the own point price elasticity of demand and show your calculations. (c) Please calculate the point cross elasticity of demand between palm oil and coconut oil and show your calculations.
Consider the demand function for processed pork in Canada, Q= 171- 20p + 20p, + 3p, + 0.002Y where Q is the quantity of pork demanded (measured millions of kg per year), p is the price of pork, P. is the price of beef, p, is the price of chicken, and Y is the income of consumers. If the price of beef decreases from $4 per kg. to $2.53 per kg., then the demand curve for processed pork will shift to the left by million kg. per year. (Enter a numeric response using a real number rounded to two decimal places.) tv MacBook Air DII DD 80 esc F6 F7 F9 F10 F12 FI F3 @ $ % & 1 2 3 4 6 7 8 de Q W E R T Y P qe A F J K ck ? .. ..
The coconut oil demand function (Bushena and Perloff, 1991) is Q=1,200-9.5p+16.2pp +0.2Y, is where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, Pp is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 65 cents per pound. Pp 23 cents per pound, and Q is 1,375 thousand metric tons per year. Calculate the price elasticity of demand for coconut oil and the cross-price elasticity of demand (with respect to the price of palm oil). The price elasticity of demand is e= (Enter your response rounded to three decimal places and include a minus sign.)
The coconut oil demand function (Bushena and Perloff, 1991) is Q = 1,200 -9.5p+16.2pp +0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, pp is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 45 cents per pound, pp is 29 cents per pound, and Q is 1,350 thousand metric tons per year. Calculate the price elasticity of demand for coconut oil and the cross-price elasticity of demand (with respect to the price of palm oil). The price elasticity of demand is (Enter your response rounded to three decimal places and include a minus sign.)