{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


E202PracticeExam2.3 - 2Q at Texas A&M(where Q is...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 4. Suppose the flight between Houston and College Station can hold 36 passengers but the airline routinely sells up to 40 tickets, assuming some passengers will not show up. Discuss why a policy of offering compensation (such as a travel voucher) to induce some passengers to wait for a later flight is more efficient than turning away the last to arrive when the flight is oversold. 5. Suppose the demand for used textbooks is P = 90 - Q and the supply of used textbooks is P =
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 2Q at Texas A&M (where Q is measured in 10,000s per semester). a. Graph the market for used textbooks. What is the equilibrium price and quantity? b. Calculate and graph (above) consumer surplus, producer surplus, and total economic surplus. What is the most that consumers and producers together would be willing to pay for the right to be able to buy and sell used textbooks?...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online