Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Assignment

The demand for Joy's new high-alcohol content beer has enjoyed rapid growth recently. From the analysis of Joy's various outlets, it was found that the demand curve follows this pattern: Q J = 150 - 200 P J - 100 P C + 10 T - 150 A C + 250 A J where

Q J = the number of beers served per week
P J = the price of Joy's new high-alcohol content beer
P C = Average price of the competition
T = Average outdoor temperature (measured in ya-ba-da-ba-doo degrees)
A C = Monthly Advertising expenditures (in units) by the competition
A J = Monthly Advertising expenditures (in units) by Joy's outlets Currently
P J = 7.00, P C = 6.00, T = 35, A C = 10, and A J = 20.
a) Should P J be increased or decreased to maximize revenue? How do you know?

(b) Calculate the elasticity of demand for Joy's beer with respect to P C , T, and A C .

(c) Calculate the price range over which the demand for Joy's beer is price elastic.

(d) If the cost per beer is 5 and Joy's behaves as a monopolist, how many beers will be sold and at what price?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92333842
  • Price:- $25

Priced at Now at $25, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question what could the government do to try and keep the

Question: What could the government do to try and keep the economy from entering a recession because of the adverse supply shock? Depict this graphically. (Alternatively - what has to shift in response to a negative supp ...

Question mr jones and mr smith live on a slope overlooking

Question: Mr. Jones and Mr. Smith live on a slope overlooking a lake. Mr. Jones's home is higher than Mr. Smith's, so to see the lake Mr. Jones must look past Mr. Smith's yard. Several years ago, Mr. Smith planted a tree ...

Question suppose that the government sets a price floor for

Question: Suppose that the government sets a price floor for milk that is above the competitive equilibrium price and that the government does not purchase any surplus milk. a. Draw a graph showing this situation. Be sur ...

Question write a brief essay minimum 250 words on the

Question: Write a brief essay (minimum 250 words) on the following: You've read about the price elasticity of demand. Much as the price elasticity of demand applies to products, it can also be applied to individual brand ...

Question suppose that the secretary of health and human

Question: Suppose that the Secretary of Health and Human Services asks you to briefly explain the difference between technical efficiency and allocative efficiency. What would you say? What examples would you provide? Wi ...

Assignment 2 the operating budget refer back to the

Assignment 2: The Operating Budget Refer back to the e-Activity in Week 3. From your local city's budget, select an agency, program, or departmentin your city, and that appears as a budget item in the city budget you dow ...

Question firm z operating in a perfectly competitive market

Question: Firm Z, operating in a perfectly competitive market, can sell as much or as little as it wants of a good at a price of $16 per unit. Its cost function is C = 50 + 4Q + 2Q^2. The associated marginal cost is MC = ...

Question unions and productivity in some industries the

Question: Unions and productivity In some industries, the labor productivity of union workers exceeds the labor productivity of nonunion workers. Which of the following might help explain the higher productivity of union ...

Question checks and balancesprofessor fiorina argues that

Question: Checks and Balances Professor Fiorina argues that checks and balances cause gridlock in the US political system. However, one of the goals of the Constitution was to allow political minorities to prevent abuses ...

Question if we plot michelles gpa as a function of her

Question: If we plot Michelle's GPA as a function of her leisure time, we see that her GPA ?rst rises with leisure (taking some time o? improves her performance) but eventually decreases with leisure. 1. Plot the relatio ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved