Ex6310

# Ex6310 - • Commute time by freeway is always 30 minutes...

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What tuition would UCSB have charged in order to get the most revenue from the students now in this class? 4 5 0 3 2 1 7 6 1% 2% 0% 10% 67% 19% 1. \$45,000 2. \$35,000 3. \$22,500 4. \$17,500 5. \$10,000 6. \$8,000

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Total revenue vs Tuition 0 200000 400000 600000 800000 1000000 1200000 0 10000 20000 30000 40000 50000 Tuition Revenue
# out of Avg Value Fraction 100 willing Revenue sponse in category Class to pay 40,000 45000 0.049 4.904 \$220,682 \$30,000 35000 0.070 11.940 \$417,910 \$25,000 27500 0.143 26.226 \$721,215 \$20,000 22500 0.113 37.527 \$844,350 \$15,000 17500 0.203 57.783 \$1,011,194 \$10,000 12500 0.230 80.810 \$1,010,128 \$8,000 9000 0.156 96.375 \$867,377 \$5,000 6500 0.019 98.294 \$638,913 5000 2600 0.017 100.000 \$260,000

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Demand Curve UCSB tuition 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 0 20 40 60 80 100 Fraction who would pay tuition
Price Elasticity of Demand for UCSB -7 -6 -5 -4 -3 -2 -1 0 0 20 40 60 80 100 Number admitted Elasticity

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A commuting game. You have two ways to commute from home to work. The short way by narrow road The long way by freeway

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Unformatted text preview: • Commute time by freeway is always 30 minutes. • Commute time by narrow road depends on how many others take narrow road. Your choice • If N people go short way, it takes 15+N/10 minutes to make the trip. • Freeway always takes 30 minutes • You hate commuting and want to minimize travel time. • Choose your route using Clickers. We’ll do this repeatedly, simulating commuter days. Your score for the day. • You will get more points, the less your total time spent commuting. • You must choose one way or the other. If you don’t click either option, you will be assessed 1 hours commuting time for that day. This time I will travel by the S h o r t w a y F e 266 205 1. Short way 2. Freeway Lets move on to our lecture…...
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## This note was uploaded on 12/25/2011 for the course ECON 1 taught by Professor Bergstrom during the Fall '07 term at UCSB.

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Ex6310 - • Commute time by freeway is always 30 minutes...

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