Suppose that your demand curves for gadgets and widgets are, Ask an Expert

Economics

Suppose that your demand curves for gadgets and widgets are both straight lines but your demand curve for a gadget (DG) is much more elastic than your demand curve for widgets (DW). Each is selling at a market price of $10, and at that price you choose to buy exactly 30 gadgets and 30 widgets.

a. Draw a graph that illustrates your demand and transactions for gadgets and widgets. Show on your graph: (1) both demand curves DG and DW, and (2) your transactions for 30 gadgets and 30 widgets at a price of $10 per unit.

b. From which transaction do you gain more surpluses? Explain or show on your graph for (a).

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91344046

Have any Question?Write your Review or question?

Related Questions in Business Economics

Are there manufacturers and retailers who have taken steps

Are there manufacturers and retailers who have taken steps to reduce their pollution impact, both air quality and industrial pollution, while maintaining a viable place in the market?

Research on the web ideas for small businesses for students

Research on the web ideas for small businesses for students. Describe at least three different ideas and include what for of business ownership you would use to structure each business.

We went over this problem in class but i dont understand

We went over this problem in class but I don't understand what exactly the professor did, so could someone explain step by step how to approach a problem like this? I have a homework assignment with problems similar to t ...

My null hypothesis relates to shipping costs being higher

"My null hypothesis relates to shipping costs being higher for critical orders than low priority orders. So u1 - u2 less than or equal to 0 is null hypothesis and right-tailed t-test. What I am unsure of is which is the ...

What is the role of local government leadership in assuring

What is the role of local government leadership in assuring that departments and divisions work together to achieve municipal goals and objectives?

Red bull is the most popular energy drink in sales in the

Red Bull is the most popular energy drink in sales in the United States. Red Bull GmbH (the parent company) has observed that daily sales are normally distributed with an average of 6,329,903 drinks sold with a standard ...

Describe the difference in economic profit between a

Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium?

Researchers at a university decided to test the hypothesis

Researchers at a University decided to test the hypothesis that restaurant servers who squat to the level of their customers would receive a larger tip. In the experiment, the waiter would flip a coin to determine whethe ...

Now assume that this market becomes perfectly competitive

Now, assume that this market becomes perfectly competitive. The production process for the good does not change. So, all firms have the same cost curves as the monopolist. Reference from: Q3. A monopolist in the sugar ma ...

With most of the worlds nations either having moved to

With most of the world's nations either having moved to market economies, does the nationalization of foreign industries and property have its place?

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

Recent Questions

Ask Business Economics Expert