Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 3.A, Problem 2AP
Subpart (a):
To determine
Demand for the goods.
Subpart (b):
To determine
Supply of the goods.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The following table shows two demand schedules for a given style of men's shoe-that is, how many pairs per month will be
demanded at various prices at Stromnord, a men's clothing store.
Price
$ 85
80
75
70
65
D₁ Quantity
Demanded
53
60
What if demand is D2?
68
77
87
Suppose that Stromnord has exactly 65 pairs of this style of shoe in inventory at the start of the month of July and will not receive any
more pairs of this style until at least August 1.
Instructions: Enter your answers as a whole number.
a. If demand is D₁, what is the lowest price that Stromnord can charge so that it will not run oht of this model of shoe in the month of
July?
pair(s)
D2 Quantity
Demanded
13
15
18
22
27
b. If the price of shoes is set at $85 for both July and August and demand will be D2 in July and D in August, how many pairs of shoes
should Stromnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory?
pair(s)
How many pairs of shoes should it order if the…
The following table shows two demand schedules for a given style of men's shoe-that is, how many pairs per month will be
demanded at various prices at Stromnord, a men's clothing store.
$
Price
$75
70
65
60
55
$
D1 Quantity
Demanded
53
60
68
77
87
Suppose that Stromnord has exactly 65 pairs of this style of shoe in inventory at the start of the month of July and will not receive any
more pairs of this style until at least August 1.
Instructions: Enter your answers as a whole number.
a. If demand is D₁, what is the lowest price that Stromnord can charge so that it will not run out of this model of shoe in the month of
July?
What if demand is D2?
D2 Quantity
Demanded
13.
15
18
22
27
b. If the price of shoes is set at $75 for both July and August and demand will be D2 in July and D₁ in August, how many pairs of
shoes should Stromnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory?
pair(s)
How many pairs of shoes should it order if the price…
In 2003, when music downloading first took off, Universal Music slashed the average price of a CD from $21 to $15. The company expected the price cut to boost the quantity of CDs sold by 30 percent, other things remaining the same.
What was Universal Music’s estimate of the price elasticity of demand for CDs?
If you were making the pricing decision at Universal Music, what would be your pricing decision? Explain your decision.Typed and correct answer please. I ll rate
Chapter 3 Solutions
Microeconomics
Ch. 3.6 - Prob. 1QQCh. 3.6 - Prob. 2QQCh. 3.6 - Prob. 3QQCh. 3.6 - Prob. 4QQCh. 3.A - Prob. 1ADQCh. 3.A - Prob. 2ADQCh. 3.A - Prob. 3ADQCh. 3.A - Prob. 4ADQCh. 3.A - Prob. 5ADQCh. 3.A - Prob. 6ADQ
Ch. 3.A - Prob. 7ADQCh. 3.A - Prob. 1ARQCh. 3.A - Prob. 2ARQCh. 3.A - Prob. 3ARQCh. 3.A - Prob. 4ARQCh. 3.A - Prob. 5ARQCh. 3.A - Prob. 6ARQCh. 3.A - Prob. 1APCh. 3.A - Prob. 2APCh. 3.A - Prob. 3APCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7P
Knowledge Booster
Similar questions
- ONLY ANSWER QUESTION #2 1. Online the timing and tailoring of prices to specific models of products is the key to successful pricing in online markets. And “Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online.”Assuming a 10 percent decrease in price increases sales by 28 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $.50 per click and boasts a conversion rate of 5 percent (an average of 20 clicks are needed to generate a sale). What price should you charge for the product? What is the optimal markup on cost? 2. The authors assert that price sensitivity is affected by (1) product life cycles, and (2) numbers of competitors. In fact, “when the number of competing sellers doubles, a firm’s elasticity of demand is expected to double (and you should be able to verify…arrow_forwardAccording to the graph above, what is the quantity demanded at S80arrow_forwardAnswer the next question on the basis of the following demand schedule. Price $6 33525 1 Quantity Demanded 1 2 3 4 5 6 Which of the following is correct? Multiple Choice Although the slope of the demand curve is constant, price elasticity of demand goes from elastic to inelastic as we move from high to low price ranges. Although the slope of the demand curve is constant, price elasticity of demand goes from Inelastic to elastic as we move from high to low price ranges. Although the demand curve is convex to the origin, price elasticity of demand is constant throughout. A steep slope means demand is relatively inelastic, a flat slope means demand is relatively elasticarrow_forward
- Online the timing and tailoring of prices to specific products is the key to successful pricing in online markets. And " Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online." Assuming a 10 percent decrease in price increases sales by 30 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $0.50 per click and boasts a conversation rate of 5 percent ( an average of 20 percent clicks are needed to generate sale), the incremental cost of each sale is $50. What price should you change for the product? What is the markup? B) . The authors assert that price sensitivity is affected by (1) product cycle, and (2) number of competitors. In fact, " When the number of competing sellers doubles, a firm's elasticity of demand is expected to double ( you should be able to verify this…arrow_forwardI used to buy 3 movies a month, but when Connecting U dropped the price of a gigabyte of data from a high of $20 to a low of $14.48 (a total decrease of 32.02 percent according to the midpoint formula), I want to buy 5 movies a month. A) My demand for movies increases by 33.34% B) My demand for movies increases by 66.67% C) My demand for movies increases by 50% 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_forwardSuppose you are the manager of a restaurant that serves an average of 400 meals per day at an average price per meal of $20. On the basis of a survey, you have determined that reducing the price of an average meal to $18 would increase the quantity demanded to 450 per day. Compute the price elasticity of demand between these two points. Would you expect total revenues to rise or fall? Explain. Suppose you have reduced the average price of a meal to $18 and are considering a further reduction to $16. Another survey shows that the quantity demanded of meals will increase from 450 to 500 per day. Compute the price elasticity of demand between these two points. Would you expect total revenue to rise or fall as a result of this second price reduction? Explain. Compute total revenue at the three meal prices. Do these totals confirm your answers in (b) and (d) above?arrow_forward
- QUESTION 3 Instagrum, a popular and free photo-sharing application, has introduced a new premium subscription service called Instagrum Pro. Instagrum Pro will include some additional featuers, more photo filters and more editing options. The price of the subscription is $4.99 USD per month. Suppose Instagrum knows that at the current price, the point price elasticity of demand for the Instagrum Pro service is elastic. Select the item from the list provided to make the following statements true. ✓ In order to increase revenue, Instagrum should the price of Instagrum Pro. item ✓ Instagrum Pro could be considered a/an because you can still post pictures on Instagrum (with fewer filters and editing options) without paying for Instagrum Pro ✓ A 1% increase in the price of Instagrum Pro would lead to a/an than 1% decrease in the number of paying subscribers. 1. budget 2. first increase then decrease 3. greater 4. first decrease then increase 5. necessary 6. increase 7. luxury 8.…arrow_forwardThe table below shows two demand schedules for a given style of men's shoe- that is, how many pairs per month will be demanded at various prices at a men's clothing store in Seattle called Stromnord. price D1 Quantity Demanded D2 Quantity Demanded $ 75 53 13 70 60 15 65 68 18 60 77 22 55 87 27 Suppose that Stromnord has exactly 65 pairs of this style of shoe in inventory at the satrt of the month of July and will not receive any more pairs of this style until at least August 1. Instructions: Enter your answers as whole numbers 1). If demand is D1 what is the lowest price that Stromnord can charge so that it will not run out of this model of shoe in the month of July? What if demand is D2? 2) If the price of shoes is set at $ 75 for both July and August and demand will be D2 in July and D1 in August, how many pairs of shoes should Stormnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory? What if the price is set at $ 55…arrow_forward3. You are the only pharmacist in a small town; the next closest drugstore is 50 miles away. The population in your town consists of young farmers and older retired families. You have noticed that the young farmers are less sensitive to price changes than the retired population. Specifically, you have found that the working population has an own price elasticity of demand of -2 and the retired farmers have an own price elasticity of-4. How can you use this information to your advantage?arrow_forward
- You run a shop that sells everything connected with coffee. Currently, you sell 21 coffee makers per month, but you would like to increase this to 55. Knowing that coffee makers and coffee beans are complements, you have decided to stimulate demand for coffee makers by decreasing the price of coffee beans. Given that you achieved your sales target for coffee makers by reducing the price of coffee beans from $1.10 to $0.89, what is the cross-price elasticity of demand between the two goods? Use the midpoint method, and round all intermediate calculations and your final answer to two decimal places if necessary.arrow_forwardSuppose you own a bookstore where you currently sell 23 Harry Potter adventure novels per day at a price of $39 per book. However, if you were to reduce the price to $28, then you would sell 31 Harry Potter adventure novels per day. Using the midpoint formula, what is the price elasticity of demand for Harry Potter adventure novels? (Hint: Be sure to include a minus sign, and enter a real number rounded to two decimal places.) In this price range, the demand for Harry Potter adventure books isarrow_forwardRefer to the table below to answer the questions. Use the mid- point formula. $4 10 B 8 F Demand 1 2 3 4 5 Number of gardenburgers 4.1) If the price of a gardenburger increases from RM8 to RM10, the price elasticity of demand equals and demand is 4.2) If the price of a gardenburger increases from RM6 to RM8, the price elasticity of demand equals and demand is 4.3) If the price of a gardenburger decreases from RM7 to RM6, the price elasticity of demand equals results in a(n). 4.4) If the price of a gardenburger decreases from RM9 to RM8, the price elasticity of demand equals , and the decrease in total revenue. and demand is 4.5) If the price of a gardenburger decreases from RM8 to RM7, the price elasticity of demand equals and demand is 4.6) If the price of a gardenburger increases from RM7 to RM9, the price elasticity of demand equals results in a(n). and the increase in total revenue. E. 6. %24 Pricearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc