pg 142 - M anagerial Econom ics (M G608) A s ignm ent #3...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: M anagerial Econom ics (M G608) A s ignm ent #3 Victor Sm ith D ate: 02/16/20 3 Textbo k Problem s p142 #1) p 142 #3) Demand Equation Q = 10 - 10P + 0.5Y 3a) Interpret equation where P = 7, Y = 50 then Q = 5 3b) price point elasticity 3c) income point elasticity where Y (income) = 50 3d) price elscticity when Y(income) = 70, P = 8 then Q = 5 point elasticity p142 #5) P = $70, Q = 4,0 0, Ep = -2.5 elastic, normal go d: reduce price, quantity & revenue increase when price reduced P2 = $63 (10% decrease, -0.1) p143 #9) Demand Equation Q = 150 - 20 P Q = 150 - 20 P Elasticity P = 7.5 - (1/20 )Q Price (P) Quantity (Q) Point Arc Total Rev. (TR) Marg.Rev. (MR) 7.0 10-14.0 0-9.0 0 70 6.50 MR = dTR/dQ = 7.5 - (1/10 )Q 6.50 20-6.50-5.0 0 130 5.50 6.0 30-4.0 0-3.286 180 4.50 5.50 40-2.750-2.3 3 2 0 3.50 5.0 50-2.0 0-1.727 250 2.50 4.50 60-1.50-1.308 270 1.50 4.0 70-1.143-1.0 0 280 0.50 3.50 80-0.875-0.765 280-0.50 3.0 90-0.6 7-0.579 270-1.50 2.50 10 0-0.50 1.0 0 250-2.50 p143 #13) Vanil a Ice cream sales increase 20%, 0.20Vanil a Ice cream sales increase 20%, 0....
View Full Document

Page1 / 4

pg 142 - M anagerial Econom ics (M G608) A s ignm ent #3...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online