Suppose you have 8 used Varian’s Intermediate Micro textbooks, which you want to get rid of. There are 8 potential buyers who are willing to buy your used textbooks. You know how much each potential buyer is willing to pay for a single book. Let’s call this amount the reservation price. Reservation prices of potential buyers are in the table.
(For example, buyer A is willing to pay at most 40 dollars for a single book.)
(a)If you offer all your books at the same price of $20, which buyers will buy the books?
(b)If you offer all your books at the same price of $20, what is consumer A’s net consumer’s surplus?
(c)If you offer all your books at the same price of $20, what is consumer B’s net consumer’s surplus?
(d)If you offer all your books at the same price of $20, what is the total net consumers’ surplus generated in the market?
(e)If you sell all your books at the same price of $20, what is the total gross consumers’ surplus generated in the market?
(f)If you lower the sale price of your books to $19, by how much does the total net consumers’ surplus increase?
(g)If you lower the sale price of your books to $19, by how much does the total gross consumers’ surplus increase?
Suppose Lizzie’s demand function for cherries is D p 10 p, where p is the price of a pound of cherries.
(a) If the price of a pound of cherries is $6, how many pounds of cherries will Lizzie buy?
b) How much gross consumer’s surplus does Lizzie get from consuming cherries at the price of $6 per pound?
(c)How much money does Lizzie spend on the cherries?
(d)What is Lizzie’s net consumer surplus from consuming cherries at the price of $6 per pound?
In the city of Johor Bahru in Malaysia, the locals’ demand function for beets is ql max200 p,0 and the tourists’ demand function for beets is qt max90 4p,0. (a) What is the locals’ price elasticity of demand for beets at price p?
(b)What is the tourists’ price elasticity of demand for beets at price p?
(c)At what price is the locals’ price elasticity of demand for beets equal to -1?
(d)At what price is the tourists’ price elasticity of demand for beets equal to -1?
(e)Draw the locals’ demand curve for beets, the tourists’ demand curve for beets, and the market (locals’ and tourists’) demand curve for beets. Use different color for each curve.
(f)At what non-zero price there is a kink in the total demand curve?
(g)What is the market demand function for prices below the kink?
(h)What is the market demand function for prices above the kink?
(i)At what price the price elasticity of market demand is -1?
(j)At what price will the revenue from the sale of beets be maximized?
(k)If the goal of sellers of beets to maximize revenue, will beets be sold to locals only, to tourists only, or to both?
The demand function for football tickets for a typical game at OSU is
D p 200,000 10,000p. OSU has a clever athletic director who has mastered Intermediate Micro and sets ticket prices so as to maximize revenue. The Shoe, where football games are held, has capacity of 100,000 people. (a) What is the inverse demand function?
(b)Write an expression for total revenue as a function of the number of tickets.
(c)Write an expression for marginal revenue as a function of the number of tickets.
(d)Use different colors to draw the inverse demand function and marginal revenue.
Also, draw a vertical line representing the capacity of the stadium.
(e)What price will generate the maximum revenue?
(f)How many tickets will be sold at this revenue-maximizing price?
(g)What is the marginal revenue at the revenue-maximizing quantity?
(h)What is the price elasticity of demand at the revenue-maximizing price?
(i)Will the stadium be full at the revenue-maximizing price?
(j)A series of winning seasons causes the demand curve for football tickets to shift upward. The new demand curve is Dp 300,000 10,000p. What is the new inverse demand function?
(k)What is the marginal revenue for the new demand function as a function of the number of tickets?
(l)Draw the new inverse demand function and the new marginal revenue using different color.
(m)Ignoring stadium capacity, what price would generate maximum revenue?
(n)How many tickets will be sold at this new revenue-maximizing price?
(o)If the athletic director wanted to maximize revenue, how many tickets will he actually sell and at what price?
(p)What is the marginal revenue from selling an extra ticket at this new price?
(q)What is the price elasticity of demand for tickets at this price?
Why Choose HelpHub
Quality Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.
On Time Delivery
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
HelpHub Writing Services
No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.