9. Calculate the cross-price elasticites in the case of a decrease in the price of cabbage at 20%, an increase in the demand of tomatoes at 15% and a decrease in the demand of artichokes at 10%. Comment on whether tomatoes and articokes are substitutes for or complements with cabbage.
13. Represent a demand function with QD = 6 - P
a. Graph the demand function (with intercepts on the horizontal and vertical axes).
b. If the price equals 2 (dollars), what is the consumer surplus?
c. If the price increases to 4 (dollars), what is the new value of the consumer surplus? This new value should be lower, and please explain why this should be true.
In: Economics
3) Suppose that a price searcher is currently charging a price that leads to an output level where marginal revenue is zero. Assume that marginal costs are always positive.
This price will or will not maximize the firm’s profit.
4) If a firm goes out of business, what happens to the firm’s assets and workers?
A) The assets and workers become available for use by other firms in potentially more productive ways.
B) The assets and talents of the workers must remain with the firm owners
C) The assets and workers become available for use by other firms, but only for less productive purposes.
D) The assets and talents of the employees are lost permanently.
5) Suppose that families with low income have a highly elastic demand for college, while families with high income may have an inelastic demand for college. Assume there is no “reselling” of a college education.
Which of the following pricing strategies would increase revenue for colleges?
A) Charge students from low-income families a lower-price, and charge students from high-income families a higher price.
B) Charge students from high-income families a lower-price, and charge students from low-income families a higher price.
C) Charge all students the same price, regardless of family income.
In: Economics
What is the relationship between the price of crude oil and the price you pay at the pump for gasoline? The file Oil&Gasoline contains the price ($) for a barrel of crude oil (Cushing, Oklahoma, spot price) and a gallon of gasoline (U.S. average conventional spot price) for 287 weeks, ending June 26, 2015.
Date Gasoline Crude Oil
Jan 01, 2010 2.031 79.07
Jan 08, 2010 2.124 82.34
Jan 15, 2010 2.079 80.06
Jan 22, 2010 2.010 76.62
Jan 29, 2010 1.942 73.94
Feb 05, 2010 1.885 74.57
Feb 12, 2010 1.908 73.88
Feb 19, 2010 2.031 78.25
Feb 26, 2010 2.042 79.22
Mar 05, 2010 2.127 80.19
Mar 12, 2010 2.154 81.76
Mar 19, 2010 2.150 81.44
Mar 26, 2010 2.118 80.65
Apr 02, 2010 2.191 83.01
Apr 09, 2010 2.238 85.66
Apr 16, 2010 2.205 84.34
Apr 23, 2010 2.195 82.90
Apr 30, 2010 2.260 84.22
May 07, 2010 2.155 80.24
May 14, 2010 2.099 74.98
May 21, 2010 1.921 69.14
May 28, 2010 1.900 70.62
Jun 04, 2010 1.945 72.91
Jun 11, 2010 1.969 73.44
Jun 18, 2010 2.080 76.70
Jun 25, 2010 2.054 77.06
Jul 02, 2010 1.969 74.96
Jul 09, 2010 1.970 74.39
Jul 16, 2010 1.988 76.35
Jul 23, 2010 2.025 77.56
Jul 30, 2010 2.024 78.12
Aug 06, 2010 2.098 81.79
Aug 13, 2010 1.949 78.17
Aug 20, 2010 1.882 74.84
Aug 27, 2010 1.859 72.91
Sep 03, 2010 1.919 74.02
Sep 10, 2010 1.968 74.82
Sep 17, 2010 1.978 75.62
Sep 24, 2010 1.951 73.76
Oct 01, 2010 2.034 78.41
Oct 08, 2010 2.193 82.29
Oct 15, 2010 2.202 82.16
Oct 22, 2010 2.146 81.15
Oct 29, 2010 2.122 82.03
Nov 05, 2010 2.174 84.93
Nov 12, 2010 2.242 86.91
Nov 19, 2010 2.287 82.23
Nov 26, 2010 2.258 82.28
Dec 03, 2010 2.359 86.75
Dec 10, 2010 2.349 88.50
Dec 17, 2010 2.329 88.27
Dec 24, 2010 2.452 89.66
Dec 31, 2010 2.430 90.97
Jan 07, 2011 2.442 89.54
Jan 14, 2011 2.474 91.02
Jan 21, 2011 2.464 89.75
Jan 28, 2011 2.411 86.11
Feb 04, 2011 2.466 89.52
Feb 11, 2011 2.471 85.51
Feb 18, 2011 2.511 84.13
Feb 25, 2011 2.731 95.26
Mar 04, 2011 2.864 101.05
Mar 11, 2011 2.832 103.74
Mar 18, 2011 2.734 99.79
Mar 25, 2011 2.846 104.41
Apr 01, 2011 2.972 105.08
Apr 08, 2011 3.117 109.29
Apr 15, 2011 3.133 107.75
Apr 22, 2011 3.192 109.11
Apr 29, 2011 3.290 112.30
May 06, 2011 3.159 105.84
May 13, 2011 3.152 99.87
May 20, 2011 2.865 97.99
May 27, 2011 2.933 99.55
Jun 03, 2011 2.924 100.92
Jun 10, 2011 2.899 100.05
Jun 17, 2011 2.868 95.87
Jun 24, 2011 2.739 92.70
Jul 01, 2011 2.796 93.70
Jul 08, 2011 2.973 97.12
Jul 15, 2011 3.043 96.72
Jul 22, 2011 3.039 98.01
Jul 29, 2011 3.048 97.83
Aug 05, 2011 2.889 90.85
Aug 12, 2011 2.741 82.86
Aug 19, 2011 2.807 85.36
Aug 26, 2011 2.862 85.06
Sep 02, 2011 2.911 88.07
Sep 09, 2011 2.937 87.91
Sep 16, 2011 2.794 88.93
Sep 23, 2011 2.678 83.65
Sep 30, 2011 2.635 81.18
Oct 07, 2011 2.710 79.43
Oct 14, 2011 2.882 85.35
Oct 21, 2011 2.772 86.82
Oct 28, 2011 2.744 92.32
Nov 04, 2011 2.703 93.24
Nov 11, 2011 2.719 96.97
Nov 18, 2011 2.577 99.32
Nov 25, 2011 2.548 96.89
Dec 02, 2011 2.602 99.91
Dec 09, 2011 2.636 100.08
Dec 16, 2011 2.568 96.06
Dec 23, 2011 2.639 97.74
Dec 30, 2011 2.698 99.81
Jan 06, 2012 2.778 102.39
Jan 13, 2012 2.774 100.43
Jan 20, 2012 2.831 99.95
Jan 27, 2012 2.867 99.35
Feb 03, 2012 2.910 97.80
Feb 10, 2012 2.988 98.56
Feb 17, 2012 3.025 101.73
Feb 24, 2012 3.113 107.18
Mar 02, 2012 3.174 107.52
Mar 09, 2012 3.043 106.32
Mar 16, 2012 3.117 106.15
Mar 23, 2012 3.219 106.41
Mar 30, 2012 3.307 105.12
Apr 06, 2012 3.361 103.52
Apr 13, 2012 3.278 102.55
Apr 20, 2012 3.154 103.15
Apr 27, 2012 3.090 103.78
May 04, 2012 2.986 103.47
May 11, 2012 2.933 96.98
May 18, 2012 2.875 93.11
May 25, 2012 2.827 90.88
Jun 01, 2012 2.714 87.06
Jun 08, 2012 2.683 84.43
Jun 15, 2012 2.672 83.27
Jun 22, 2012 2.535 81.11
Jun 29, 2012 2.515 80.23
Jul 06, 2012 2.664 85.74
Jul 13, 2012 2.769 85.78
Jul 20, 2012 2.820 90.34
Jul 27, 2012 2.711 88.88
Aug 03, 2012 2.837 89.10
Aug 10, 2012 2.987 93.14
Aug 17, 2012 3.002 94.43
Aug 24, 2012 3.041 96.22
Aug 31, 2012 3.146 95.68
Sep 07, 2012 3.244 95.68
Sep 14, 2012 3.335 97.56
Sep 21, 2012 3.134 93.70
Sep 28, 2012 3.363 91.35
Oct 05, 2012 3.234 90.81
Oct 12, 2012 3.163 91.42
Oct 19, 2012 2.897 91.59
Oct 26, 2012 2.717 86.35
Nov 02, 2012 2.730 85.87
Nov 09, 2012 2.810 85.98
Nov 16, 2012 2.921 85.87
Nov 23, 2012 2.818 87.40
Nov 30, 2012 2.789 87.27
Dec 07, 2012 2.681 87.00
Dec 14, 2012 2.645 85.71
Dec 21, 2012 2.755 88.24
Dec 28, 2012 2.827 90.14
Jan 04, 2013 2.814 92.77
Jan 11, 2013 2.809 93.38
Jan 18, 2013 2.770 94.58
Jan 25, 2013 2.880 95.41
Feb 01, 2013 3.032 97.33
Feb 08, 2013 3.057 96.18
Feb 15, 2013 3.088 96.95
Feb 22, 2013 3.092 94.38
Mar 01, 2013 2.992 92.19
Mar 08, 2013 2.913 91.00
Mar 15, 2013 2.909 92.70
Mar 22, 2013 2.875 93.05
Mar 29, 2013 2.911 96.08
Apr 05, 2013 2.758 95.07
Apr 12, 2013 2.677 93.36
Apr 19, 2013 2.691 88.00
Apr 26, 2013 2.691 91.00
May 03, 2013 2.699 93.40
May 10, 2013 2.767 95.84
May 17, 2013 2.777 94.65
May 24, 2013 2.747 94.76
May 31, 2013 2.707 93.32
Jun 07, 2013 2.752 94.25
Jun 14, 2013 2.786 96.36
Jun 21, 2013 2.769 96.65
Jun 28, 2013 2.655 95.83
Jul 05, 2013 2.747 100.65
Jul 12, 2013 2.935 104.7
Jul 19, 2013 3.015 106.88
Jul 26, 2013 2.935 105.88
Aug 02, 2013 2.963 105.54
Aug 09, 2013 2.866 105.17
Aug 16, 2013 2.927 106.97
Aug 23, 2013 2.947 105.48
Aug 30, 2013 2.982 108.33
Sep 06, 2013 2.933 108.77
Sep 13, 2013 2.824 108.36
Sep 20, 2013 2.769 106.22
Sep 27, 2013 2.712 103.1
Oct 04, 2013 2.67 103.14
Oct 11, 2013 2.706 102.7
Oct 18, 2013 2.722 101.51
Oct 25, 2013 2.657 97.57
Nov 01, 2013 2.654 96.94
Nov 08, 2013 2.588 94.31
Nov 15, 2013 2.695 93.94
Nov 22, 2013 2.725 93.92
Nov 29, 2013 2.707 92.97
Dec 06, 2013 2.727 96.21
Dec 13, 2013 2.665 97.23
Dec 20, 2013 2.714 97.85
Dec 27, 2013 2.823 99.15
Jan 03, 2014 2.753 96.47
Jan 10, 2014 2.685 92.42
Jan 17, 2014 2.636 92.98
Jan 24, 2014 2.687 96.19
Jan 31, 2014 2.675 97.29
Feb 07, 2014 2.691 97.78
Feb 14, 2014 2.798 100.21
Feb 21, 2014 2.879 102.93
Feb 28, 2014 2.831 102.77
Mar 07, 2014 2.809 103.07
Mar 14, 2014 2.791 99.55
Mar 21, 2014 2.722 99.77
Mar 28, 2014 2.699 100.66
Apr 04, 2014 2.709 100.46
Apr 11, 2014 2.886 102.72
Apr 18, 2014 2.971 103.95
Apr 25, 2014 3.001 102.11
May 02, 2014 2.883 100.51
May 09, 2014 2.832 100.29
May 16, 2014 2.864 101.92
May 23, 2014 2.896 103.82
May 30, 2014 2.853 103.95
Jun 06, 2014 2.819 103.23
Jun 13, 2014 2.882 105.97
Jun 20, 2014 2.952 107.23
Jun 27, 2014 2.932 106.69
Jul 04, 2014 2.887 105.52
Jul 11, 2014 2.829 103.25
Jul 18, 2014 2.786 102.37
Jul 25, 2014 2.782 104.35
Aug 01, 2014 2.735 102.19
Aug 08, 2014 2.688 97.5
Aug 15, 2014 2.685 97.17
Aug 22, 2014 2.704 94.95
Aug 29, 2014 2.75 96.25
Sep 05, 2014 2.748 94.06
Sep 12, 2014 2.691 92.43
Sep 19, 2014 2.677 93.52
Sep 26, 2014 2.762 93.15
Oct 03, 2014 2.667 91.44
Oct 10, 2014 2.483 87.63
Oct 17, 2014 2.331 82.88
Oct 24, 2014 2.347 82.12
Oct 31, 2014 2.302 81.29
Nov 07, 2014 2.213 78.24
Nov 14, 2014 2.183 76.5
Nov 21, 2014 2.151 75.38
Nov 28, 2014 2.102 72.36
Dec 05, 2014 1.902 67.18
Dec 12, 2014 1.712 61.14
Dec 19, 2014 1.607 55.89
Dec 26, 2014 1.59 55.58
Jan 02, 2015 1.514 53.44
Jan 09, 2015 1.376 48.77
Jan 16, 2015 1.325 47.07
Jan 23, 2015 1.35 46.46
Jan 30, 2015 1.377 45.32
Feb 06, 2015 1.531 50.58
Feb 13, 2015 1.575 51.14
Feb 20, 2015 1.604 51.69
Feb 27, 2015 1.718 49.16
Mar 06, 2015 1.726 50.38
Mar 13, 2015 1.628 47.69
Mar 20, 2015 1.575 44.39
Mar 27, 2015 1.654 48.68
Apr 03, 2015 1.633 48.91
Apr 10, 2015 1.716 51.78
Apr 17, 2015 1.777 54.78
Apr 24, 2015 1.847 56.14
May 01, 2015 1.924 57.98
May 08, 2015 1.922 59.73
May 15, 2015 1.937 60.01
May 22, 2015 1.96 58.95
May 29, 2015 1.93 58.19
Jun 05, 2015 1.975 59.66
Jun 12, 2015 2.041 60.07
Jun 19, 2015 2.049 59.89
Jun 26, 2015 1.976 60.01
In: Statistics and Probability
The price of a given basket of goods in Country 1 is 10 karls. The price of the same basket of goods in Country 2 is 25 ritz and $2 in the U.S. Country 1 has a income per capita of 3,200 karls and Country 2 has a income per capita of 5,500 ritz. Which of the following is true?
Which of the following is true?
Which of the following should be used to compare the incomes of countries with huge differences in cost of living?
In: Economics
In: Economics
A university is trying to determine what PRICE to charge for
football tickets. At a price of $6 per ticket, it averages 70,000
people per game.
For every increase of $1, it loses 10,000 people from the average
number . Every person at the game spends an average of$1.50 on
concessions.
a) What price per ticket should be charged to MAXIMIZE REVENUE? (
Please explain the steps )
b) How many people will attend at that price? Please show your
work.
In: Statistics and Probability
The price elasticity of demand for cat food is -0.4 and the price increases by 6%.
a. How much will sales of cat food change? Show your work.
b. What will happen to consumer expenditures on Purina cat food? Explain.
In: Economics
In: Civil Engineering
What is the relationship between the price of crude oil and the price you pay at the pump for gasoline? The accompanying table shows the prices of crude oil and the price you pay at the pump for 24 consecutive months. Complete parts (a) through (h) below.
b. Use the least-squares method to develop a simple linear regression equation to predict the gasoline prices using the average crude oil cost as the independent variable.
| Month | Crude_Oil | Gasoline |
| 1 | 75 | 1.986 |
| 2 | 76 | 1.937 |
| 3 | 76 | 1.807 |
| 4 | 76 | 1.537 |
| 5 | 77 | 1.493 |
| 6 | 77 | 2.076 |
| 7 | 76 | 1.918 |
| 8 | 83 | 2.229 |
| 9 | 75 | 1.638 |
| 10 | 78 | 1.372 |
| 11 | 81 | 1.832 |
| 12 | 78 | 2.019 |
| 13 | 78 | 2.354 |
| 14 | 80 | 2.447 |
| 15 | 81 | 2.211 |
| 16 | 84 | 2.331 |
| 17 | 80 | 2.667 |
| 18 | 78 | 2.884 |
| 19 | 74 | 2.775 |
| 20 | 81 | 2.531 |
| 21 | 83 | 2.619 |
| 22 | 85 | 3.415 |
| 23 | 84 | 3.119 |
| 24 | 84 | 3.096 |
In: Statistics and Probability
The government set a maximum price for bread which is lower than the price that was set in the bread market before the government intervened.
a. Show that in this situation the bakers will not be willing to sell the entire quantity the consumers would like to buy.
b. In your opinion what will happen if the government shall not take any additional steps to support its policy and will only voicing the demand of the maximum price?
In: Economics