# The profit maximizing quantity in cups of lemonade is

• Homework Help
• 24
• 100% (63) 63 out of 63 people found this document helpful

This preview shows page 7 - 12 out of 24 pages.

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook.
Chapter PPM2 / Exercise 21
Illustrated Microsoft Office 365 & PowerPoint 2016: Introductory
Beskeen Expert Verified
13. The profit maximizing quantity (in cups) of lemonade is . Table for Individual Question FeedbackPoints Earned: 3.0/3.0
14. The corresponding maximum profit is \$Table for Individual Question FeedbackPoints Earned: 3.0/3.0
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook.
Chapter PPM2 / Exercise 21
Illustrated Microsoft Office 365 & PowerPoint 2016: Introductory
Beskeen Expert Verified
Suppose that there was a demand shock so that the new estimated demand function for lemonade in your neighborhood changes to:Q = 100 - 100 PA demand curve would change like this due to:
Table for Individual Question FeedbackPoints Earned: 3.0/3.0
16. The new profit (revenue) maximizing price is cents. (don’t use a decimal point in this answer!)Table for Individual Question FeedbackPoints Earned: 3.0/3.0
17. The new profit maximizing quantity (in cups) of lemonade is . Table for Individual Question FeedbackPoints Earned: 3.0/3.0
18.
The new corresponding maximum profit is \$Table for Individual Question FeedbackPoints Earned: 3.0/3.0
19. Imagine that you kept the “sticky” lemonade price even though demand has changed (use the price you found in #12). What is the quantity sold now? Table for Individual Question FeedbackPoints Earned: 3.0/3.0
20. NOTE:There is no graphing component to be collected for this homework. However, you shouldbe comfortable creating two separate graphs from the above questions in part 2. You should be able to:1. Draw a demand curve graph showing both the original and new demand curves. Label equilibrium price and quantity in in both cases. 2. Draw the total revenue curves for both cases in a graph directly below the demand curve graph (remember the horizontal axes for the demand curve graph and the total revenue graph are the same).Again imagine that you kept the “sticky” lemonade price even though demand has changed (usethe price you found in #12). What is the profit now? \$
Table for Individual Question Feedback
Points Earned: 3.0/3.0
21. Consumption is positively related to stock market wealth but negatively related to taxes and tax rates.A) TrueB) FalseCorrect Answer(s):True
Table for Individual Question FeedbackPoints Earned: 0.0/1.0
22. If aggregate expenditures rise unexpectedly, then inventories will also rise unexpectedly.
Table for Individual Question FeedbackPoints Earned: 1.0/1.0
• • • 