Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

problem1

SkyyMarley Airlines has determined that the price elasticity of demand for two customer segments (Coach and Business Class) is -1.35 and -2.50.  Depends on their expectations of profitability, SkyyMarley comprehends the price of a Coach seat should be $175 (one way).  How much should SkyyMarley charge for a Business Class ticket? 

problem2

Assume that the demand curve for apples is given by Qd = 140 - 5P, where Qd is number of pounds demanded per year and p is price per pound. The supply of apples can be stated by Qs = 40 + 3P, where Qs is the number of pounds provided.

A. What is equilibrium price? (Hint: At the equilibrium, quantity demanded & quantity supplied are equal, Qd = Qs.)

B. What is equilibrium quantity supplied and demanded?

C. Compute the consumer surplus at the equilibrium price.

D. Compute the producer surplus at the equilibrium price.

E. Compute the total surplus at the equilibrium price.

F. Now presume that the government imposes a tax of $8 per each pound sold, paid by the consumers. In this case, what are the price and the consumer surplus?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M91644

Have any Question? 


Related Questions in Macroeconomics

Discuss the fiscal policy in kingdom of saudi arabia during

Discuss the fiscal policy in kingdom of Saudi Arabia during the period 2010-2015 I need all answers in 5 pages. Discuss the fiscal policy in kingdom of Saudi Arabia during the period 2010-2015 a) Define and explain the f ...

1 you are the economic advisor to sir bufton tufton the

1) You are the economic advisor to Sir Bufton Tufton, the Prime Minister of Per- fidia. The Bank of Perfidia is pegging the exchange rate of the local currency, the Perfidian albion. The albion is pegged to the wotan, wh ...

Economists have long argued that due to moral hazard

Economists have long argued that, due to moral hazard problems, that "bailing out" firms such as banks (the S&L crisis), brokerage firms (Bear Stearns, Drexal Burnham...) and nations (Perhaps Greece in the future and the ...

Economics required research reportevaluation of demand

Economics Required Research Report Evaluation of Demand Elasticity Business reports should be typed, double spaced, standard margins, and all sources fully cited. Please attach any referenced newspaper and or magazine ar ...

Discuss structural cyclical frictional and natural

Discuss structural, cyclical, frictional, and natural unemployment. What fiscal and monetary policies are appropriate to fight unemployment? What type of unemployment will be affected most by these policies? Why? Which w ...

Determine whether the following statement is true or false

Determine whether the following statement is TRUE or FALSE then EXPLAIN why. 1. In principle the government could increase the money supply or government expenditures to try to offset rising unemployment. 2. If the CPI r ...

A suppose the domestic and foreign interest rates are both

a. Suppose the domestic and foreign interest rates are both initially equal to 4%. Now suppose the foreign interest rate rises to 6%. Explain what effect this will have on the exchange rate. Also explain what must occur ...

Question 1 explain why real gdp might be an unreliable

Question 1: Explain why real GDP might be an unreliable indicator of the standard of living. Question 2: Why does unemployment arise and what makes some unemployment unavoidable? Question 3: Consider the following statem ...

The economics of labor markets assignment presentation to

The Economics of Labor Markets assignment presentation to be presented to the CEO's executive committee that addresses how your chosen organization determines what quantity of labor to demand and what events could shift ...

A describe five 5 ecosystem goods and services of the

a.) Describe five (5) ecosystem goods and services of the Neponset River Watershed. b.) Assign dollar ($) values to these 5 ecosystem goods and services of the Neponset River Watershed. Please be clear about how you asse ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro