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how to calculate the price elasticity of demand if the price is at 0
An agent consumes quantity (x1,x2) of goods 1 and 2. Here is his utility function: 𝑈(𝑥1, 𝑥2) = max{𝑥1, 𝑥2}.
(a) Draw a typical indifference curve for the agent.
(b) The agent has income m=6, prices are (p1, p2) = (1, 3). Derive Marshallian demand (x*1, x*2).
An agent consumes quantity (x1,x2) of goods 1 and 2. Here is his utility function: 𝑈(𝑥1, 𝑥2) = min {𝑥1, 2 ∗ 𝑥2}.
(a) Draw a typical indifference curve for the agent.
(b) The agent has income m=10, prices are (p1, p2) = (1, 3). Derive Marshallian demand (x*1, x*2).
I would like to ask about the price and quantity demanded question here.
Suppose that the current equilibrium for S-League football matches is $100 and 10,000 tickets. If demand for S-League tickets are price elastic and the price of each ticket increases to $150,
(i) What is the minimum fall in quantity demanded that the organiser can expect?
(ii) Explain the effect on total revenue.
Thank you so much for your help.
Help me understand the Dialogue below:
Interpret and evaluate this dialogue with the aid of clearly labelled diagrams:
John: “How can competitive profits be zero in the long run? Who will work for nothing?”
Mary: “It is only excess profits that are wiped out by competition. Managers get paid for their work; owners get a normal return on capital in competitive long-run equilibrium—no more, no less.
Instructions use Harvard referencing Style
How does the rise of the Internet affect this situation of prices cut of medicine
Compare and contrast the situation of PC World with that of a supermarket chain, as far as product mix profit maximization is concerned.
. Suppose a soap-manufacturing production process is described by the following
equation:
Y = a + b log K + с log L
Where,
Y= Output (number of soaps produced)
K=Capital
L=Labor
a, b and c are constants
Suppose 0<a<1, 0< b<1 and 0<c<1
a. Find the Marginal Product of Labor (MPL) and Marginal Product of Capital
(MPK) in the production of soap
A. marginal revenue is always equal to marginal cost
B. Marginal revenue is always equal to the price of the product.
C. Average revenue is always equal to the price of the product.
D. Average revenue is always equal to the marginal revenue.
