When a new park is constructed in the town of Mountainview there is an increase in both demand and supply of accommodations for tourists. The area shaded in red below would represent the benefit to society of the park in a benefit cost analysis. P Select one: O a. True O b. False D₁ D₂ S₁ S₂ QAccommodations
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- A customer has purchased one pack of 100 pairs of disposable face masks. The price of the second pack is $45, and the burer estitnated its net benefit from buying this second pack to exceed $50 What should the buyer do? Select one O a The buyer should not buy the second pack as buying the second packiwitl increase total benetts by less than total costs b. The buyer should not buy the second pack as buying the second pack will increase total benefits by more than total costs OC The buyer should buy the second pack because the marginal beneft of the second packit so igh that ts marginat cost does not mater umy more d. The buyer should buy the second pack because the marginal benefit of the second pack exceeds the marginal costThe chart below shows how annual electricity for an average Ontario household would vary with the price paid for electricity. Calculate the arc elasticity of demand for electricity for this average houschold. Also, in the final column, calculate the total revenue from sales of clectricity to this household. Price Quantity Demanded Kwh/year Total Revenue $/kwh Elasticity of Demand $0.25 1200 -0.36 $0.20 1300 $0.15 1400 $0.10 1500 $0.05 1600 Hint: The own price elasticity of demand is the percentage change in the quantity demanded divided by the percentage change in the price. What factors do you think influence the elasticity of demand for this household?QUESTION 6 28 24 20 16 12 8 4 8FO O O O O D1 D2 04 8 12 16 20 24 Q 06. If demand for this product changed from D1 to D2 as a result of a change in consumer income from $35,000 to $45,000, the "income elasticity of demand" is and this is a/an product. P 0 ררררררררררררררו d) a) negative, normal b) negative, inferior. positive, normal positive, inferior S e) positive, complementary
- he quantity demanded each month of Russo Espresso Makers is 250 when the unit price is $136. The quantity demanded ach month is 1000 when the unit price is $106. The suppliers will market 750 espresso makers when the unit price is $80 er higher. At a unit price of $100, they are willing to market 2250 units. Both the supply and demand equations are known o be linear. (a) Find the demand equation. -1 -x + 146 25 p = (b) Find the supply equation. 1 x+ 70 p = 75* (c) Find the equilibrium quantity and the equilibrium price. |× unitsA4 A known phenomenon in everyday life is that often in a purchase situation there is a deviation between the original asking price from the seller (in form of “manufacturer’s suggested retail price” (MSRP), list price etc.) and the transaction price you as a consumer actually pay in the end. This deviation is due to different forms of tactical discounting practices according to Smith. The seller company usually put in a lot of efforts to managing these price variances. But could you theoretically explain this deviation in a purchase situation out of the consumer’s perspective. This on how it impacts the behavior and decision making of the consumer? Use concepts e.g., like customer utility, willingness-to-pay, consumer surplus, and reference price in your explication. Also, out of your above answer and your now extensive knowledge in pricing theory – what could be major flaws in the proposing argument that it would be better for everybody (society, citizens, consumers, companies etc.)…Computer models of global climate changecaused by increasing carbon dioxide in the atmosphere predictnot only higher overall temperatures, but also more intense andfrequent heat waves. During the devastating European heatwave in the summer of 2003, between 35,000 and 52,000“excess deaths” occurred. Before taking specific actions toreduce carbon dioxide emissions, economists and politicians tryto estimate the costs. Should excess deaths be included as acost of inaction? If so, what value should we place on a life?
- b) Discuss and explain the concept of positive return toscale showing it relationship with the quantity ofproduction.Currently, the exchange rate is 100 yen per dollar. InJapan, we sell a product that costs $5 to produce for 700yen. The product has an elasticity of 3. For exchange ratesvarying from 70 to 130 yen per dollar, determine the optimalproduct price in Japan and the profit in dollars. Assume alinear demand curve. Current demand is assumed to equal100.ent-4.docx cetumentGrp Assignment 4. Saved to this Pd v Layout References Mailings A A™ | Aa- | Ap -I A. DA = = = |- |- B demand. daho Review if necessary. Paragraph View ENT Help For a particular video game, the company sells 160 (thousand) copies of the game when the (thousand) copies of the game. price of the game is $55. However, when they change the price to $45, the company sells 240 1 AaBhCcDdi AaBbCcDdi AalbC Đới 1 List Para... Normal 1 No Spac.... Styles a. As part of the process of finding the price elasticity of demand, what is the percent change in quantity using the midpoint method? Round your answer to 4 decimal places ECON 150: Microeconomics b. As part of the process of finding the price elasticity of demand, what is the percent change in price using the midpoint method? Round your answer to 4 decimal places if necessary. C. Using parts a and b, calculate the price elasticity of demand. Round your answer to 2 decimal places if necessary. Four