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Unformatted text preview: of society from that additional unit.
24. Assume, for example, the following demand function for Steven's ski days at Steamboat
ski area: Dssb = 20 + .03Snowsb-.06Psb + .01Pvail, Where Dssb is the individual's demand,
this year, for Steamboat ski days. Snowsb is Steamboat's total snow fall, last year, in
inches. Psb is the cost of a steamboat ski day, measured in dollars. Pvail is the cost of a
vail ski day, measured in dollars. If the cost of a vail ski day rises from $50 to $100,
then Steven's demand function for Steamboat ski days (dollar on the vertical axis) will
A) not shift; instead, Steven will move along his demand curve downward and to the
B) not shift; instead, Steven will move along his demand curve upward and to the left.
C) shift to the left.
change in substitute results in a shift in the demand curve, it
D) shift to the right.
be to the right because it will increase! Version 1 Page 5 Use the following to answer question 25: Marginal Cost
75 in between 4 and 5 is where the marginal cost is greater than the
market price, thus the firm i...
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This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.
- Fall '07