Levels Tought:
Elementary,Middle School,High School,College,University,PHD
Teaching Since: | Apr 2017 |
Last Sign in: | 237 Weeks Ago, 1 Day Ago |
Questions Answered: | 12843 |
Tutorials Posted: | 12834 |
MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
consider the following supply and demand functions: ???????? =−2????+20
???????? =2????−4
Suppose at each price individuals now demand four more units of output because of stronger preferences. Compute the equilibrium price and quantity given this change.
Â
Â
2. (8 points) Tom and Harry constitute the entire market for orange juice. They face identical demand curves. Tom’s demand curve is given by
Harry’s demand curve is given by
???? = 6 − ????1 2
???? = 6 − ????2 2
Â
(a)Â Obtain the total market demand function for orange juice.
Â
(b)Â Find the price and market quantity demanded that maximize total revenue R. What is the maximum R? (Hint: construct a table and use the following values for P: 0,1,2,3,4,5, and 6)
Â
(c)Â Compute the point elasticity of demand when price is 4. If price decreases 1%, what happens to quantity demanded?
Â
(d)Â If equilibrium price is equal to 4, compute the consumer surplus.Â
Attachments:-----------