Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 6SPA
(a)
To determine
Identify the marginal
(b)
To determine
Identify the marginal cost for each supplier if the total number of rides is 30.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
You are asked to estimate the demand curve for Lake Mead recreational area by Las Vegas residents.
a. Show on a graph what this demand curve would look like. Make sure to label properly your
graph. Explain your graph.
b.
A new Clark County program improves the quality of Lake Mead beaches. Show on your
graph how this affects the demand curve. Explain.
Highlight the area representing the benefits of the program to Las Vegas residents. Explain.
What is a potential limitation of this approach? Explain.
c.
d.
PRICE (Yen per gram)
100
90
80
70
60
40
30
20
10
0
0
0
Demand
+
20 40 60 80 100 120 140 160 180 200
QUANTITY (grams of uff per month)
Graph Input Tool
Demand for Uff
Price of Uff
(Yen per gram)
to eat my uff this morning, but there wasn't any
Quantity
Demanded
DEMAND SHIFTERS
Average Income
-(Yen per month)
Price of Tulg
(Yen per gram)
Price of Snick
(Yen per gram)
Of
Suppose that the price of a gram of uff decreased from 50 yen to 40 yen. This would cause a
an increase in
50
100
100
20
50
Plug any value lower than the current number into the Average Income box. A decrease in average income causes a leftward
the demand curve.
the demand curve and therefore
When the prices of tulg or snick change, there is a shift of the demand curve for uff. The directions of these changes imply that snick and uff are
, and that tulg and uff are
. For example, a Hermetian might say, "I went
in my fridge. So instead of having uff for breakfast, I ate some
PRICE (Dollars per room)
500
450
400
350
300
250
200
150
Demand
Graph Input 1001
Market for Big Winner's Hotel Rooms
Price
300
(Dollars per room)
Quantity
200
Demanded
(Hotel rooms per
night)
Demand Factors
Average Income
50
(Thousands of
100
dollars)
50
Airfare from YYZ to
200
LAS
0
(Dollars per
0
50 100 150 200 250 300 350 400 450 500
roundtrip)
QUANTITY (Hotel rooms)
Room Rate at Lucky
(Dollars per night)
250
For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Big Winner is charging $300 per
room per night.
If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Big Winner
rooms per night to
rooms per night. Therefore, the income elasticity of demand is
from
, meaning that hotel rooms at the
Big Winner are
good.
If the price of an airline ticket from YYZ to LAS were to increase by 10%, from $200 to $220 roundtrip, while all other demand factors remain at…
Chapter 5 Solutions
Microeconomics (13th Edition)
Ch. 5.1 - Prob. 1RQCh. 5.1 - Prob. 2RQCh. 5.1 - Prob. 3RQCh. 5.1 - Prob. 4RQCh. 5.2 - Prob. 1RQCh. 5.2 - Prob. 2RQCh. 5.2 - Prob. 3RQCh. 5.2 - Prob. 4RQCh. 5.2 - Prob. 5RQCh. 5.2 - Prob. 6RQ
Ch. 5.3 - Prob. 1RQCh. 5.3 - Prob. 2RQCh. 5.3 - Prob. 3RQCh. 5.4 - Prob. 1RQCh. 5.4 - Prob. 2RQCh. 5.4 - Prob. 3RQCh. 5.4 - Prob. 4RQCh. 5 - Prob. 1SPACh. 5 - Prob. 2SPACh. 5 - Prob. 3SPACh. 5 - Prob. 4SPACh. 5 - Prob. 5SPACh. 5 - Prob. 6SPACh. 5 - Prob. 7SPACh. 5 - Prob. 8SPACh. 5 - Prob. 9SPACh. 5 - Prob. 10SPACh. 5 - Prob. 11APACh. 5 - Prob. 12APACh. 5 - Prob. 13APACh. 5 - Prob. 14APACh. 5 - Prob. 15APACh. 5 - Prob. 16APACh. 5 - Prob. 17APACh. 5 - Prob. 18APACh. 5 - Prob. 19APACh. 5 - Prob. 20APACh. 5 - Prob. 21APACh. 5 - Prob. 22APACh. 5 - Prob. 23APACh. 5 - Prob. 24APACh. 5 - Prob. 25APACh. 5 - Prob. 26APACh. 5 - Prob. 27APA
Knowledge Booster
Similar questions
- Parking rates at public carpark spaces have increased substantially in the metropolitan area. Using a supply and demand diagram, explain how this would affect the market for:i. public transportii. footy games at Suncorp stadium. Suppose the stadium authorities host games more frequently now than before, how would your answer change?arrow_forwardExplain what happen if a supplier charged more than the market pricearrow_forwardUse the demand curve below to answer questions 7 through 10. Price 1 0.9 0.8 0.7 0.6- 0.5- 04- 0.3- 0.2 0.1 0- 0 1000 2000 3000 4000 5000 6000 7000 8000 Quantity What's the marginal value at a quantity of 4,000? Answer herearrow_forward
- Economics Which price adjustment strategy is based on how a customer's perception of a product is influenced by its price? a. By-product pricing b. Captive product pricing c. Promotional pricing d. Psychological pricing e. International pricingarrow_forwardI need help filling out the this Table, i need helpwith the more revenue and least revenue boxes filled out. Predicting Consequences Use the table below to predict what would happen if airlines and baseballstadiums priced all seats the same instead of using variable pricing. What would happen to the number of tickets sold? What would happen to the total revenue from ticket sales? Assume stadiums areusing variable pricing and aren't completely sold out or completely empty. What would change ifseats were sold at the lowest prices? Highest prices? Variable prices?arrow_forward25. Which of the following is NOT a hon-price method that a supplier could use to allocate a good where there is a shortage? a) Waiting in line b) close friends with the owner c) racial bias d) auction e) lotteryarrow_forward
- Use supply and demand curves to illustrate and explain how each of the following events would affect the market for petrol in Singapore. Please explain and draw the daigram A global recession. A government subsidy paid to electric car manufacturers.arrow_forwarda. Demand for good Q is estimated to be Q = 14 - P, where P is price. If the prices rises from P = $3 to P = $6, then the lost revenue due to the quantity effect is b. A firm selling a product Q faces a demand where Q = 24 - P, where P is price. If the firm lowers the price from P = $20 to P = $16, then the lost revenue due to the price effect isarrow_forwardThe table below shows the market for AA batteries in Tulsa, Oklahoma, when tornadoes threaten the area. Market for AA Batteries with Tornado Threat Quantity of Quantity of Batteries Batteries Demanded Supplied (packages) 100 80 60 40 20 Price (dollars) $15 13 9 7 5 (packages) 40 50 60 70 80 90 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- What effect does a per-gallon tax on gasoline have on the market for gasoline? Who pays for the increase in tax?arrow_forwardWho gets the benefit when there is surplus of goods in the market household consumers government sellersarrow_forwardThe quantity demanded each month of russo Espresso Makers is 250 when the unit price is $140; the quantity demanded each month is 1000 when th e unit price is $110. the suppliers will market 750 expresso makers if the unit price is $60 or higher. At a unit price of $80 they are willing to market 2250 units Both the demand and supply equations are known to be liniear. A: Find the demand equation. B: Find the supply equation. C: Find the equilibrium quantity and the equilibrium price.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncEconomics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub CoManagerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning