Q5. Figure 18-9 shows how price is determined for express lanes in a value pricing (HOT lanes) policy. Vo represents. Trip cost ($) Toll Toll Vo Demand: low Trip cost Vehicles the maximum amount of traffic volume that is possible without congestion the minimum amount of traffic volume that is possible without congestion the maximum amount of traffic volume that would be willing to pay a toll O the minimum toll cost for the most congested periods Demand: high

Q5. Figure 18-9 shows how price is determined for express lanes in a value pricing (HOT lanes) policy. Vo represents. Trip cost ($) Toll Toll Vo Demand: low Trip cost Vehicles the maximum amount of traffic volume that is possible without congestion the minimum amount of traffic volume that is possible without congestion the maximum amount of traffic volume that would be willing to pay a toll O the minimum toll cost for the most congested periods Demand: high

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 10PA: A friend of yours is considering two cell phone service providers. Provider A charges 120 per month...

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4G l 7:08 68 https://vle.usm.edu.ph/m 2 Aretail store faces a demand equation for Roller Blades given by: Q = 180 - 1.5P where Q is the number of pairs sold per month and P is the price per pair in dollars. If we get the inverse demand or the price equation from the above equation, what will be the new demand equation? Select one: a. P = 0.67Q - 120 b. P = Q - 120 c. P = Q - 180 d. P = 1.5Q - 180
Forty thousand potential customersof a cable TV franchise are each willing to pay $11/month for HBO and $11/month for Cinemax. Twenty thousand potential customers are willing to pay $20/month for HBO and only $5/month for Cinemax. Assume costs are zero. If the franchise sells the two services in a bundle, it should charge1: $312: $253: $224: $205: $18
Suppose the ISP is considering decreasing the price it charges by $20. Because of the price effect, total revenue will fall by The graph below depicts the monthly demand facing the only Internet service provider (ISP) that serves customers in a small town. Currently, the ISP charges a price of $110 per month and serves 8 thousand customers. Type here to search O Part 2 Price 100 150 140 130 120 100 10 Internet Service Number of Customers in 1,000 4 Suppose the ISP is considering decreasing the price it charges by $20. Because of the price effect, total revenue will fall by $ thousand. Suppose the ISP is considering decreasing the price it charges by $20. Because of the output effect, total revenue will rise by S thousand.
O'The function that relates the inverse of speed (1/S) to traffic on a highway is 1/S = (1/60) + 0.00057, where the inverse of speed is measured in hours per mile. What would this equation be if expressed in minutes per mile? The demand for traffic on this road is T = 6,880– 80, (travel time per mile in minutes). a. Find the equilibrium traffic volume in the absence of any congestion toll. b. Find the ginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes. c. Find the optimal level of traffic volume. d. Find the optimal congestion toll, expressed in minutes. (Imagine that the congestion toll consists of sitting in the "penalty box" for this period of time. The toll can also be assessed in money terms, of course.)
FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of reservations on a typical Sunday dropped from 60 to 55. Which statement is correct? O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price O The total costs faced of FoisPas on a typical Sunday must have increased for sure O The price increase led to a decrease in total revenues as demand was elastic at the initial price O FoisPas faces a horizontal demand curve O The price increase had a positive impact on total revenue as demand was inelastic at the initial price
I have filled in al the mathematical answers / just need graphs that are bold with asteriks The following relations describe monthly demand and supply for a computer support service to small businesses: Qd = 3000 - 10P Qs = -1000 + 10P Where Q is the number of businesses that need services and P is the monthly fee, in dollars. At what average monthly fee would demand equal zero? Qd = 3000 – 10P 0 = 3000 – 10P 10P = 3000/10 P = $300 At what average monthly fee would supply equal zero? Qs = -1000 + 10P 0 = -1000 + 10P -10P = -1000 P = 1000/10 P = $100 ***Plot the supply and demand curves. What is the equilibrium price/output level? We know at equilibrium, Qd = Qs 3000-10P = -1000+10P 3000 + 1000 = 10P + 10P 4000 = 20P 4000/20 P = $ 200 (Equilibrium Price) If P = $200 Qd = 3000 – 10(200) Qd = 3000 – 2000 Qd = 1000 units (Output level) Qs = -1000 + 10(200) Qs = -1000 + 2000 Qs = 1000 units (Output level) Suppose demand increases and leads to a new demand curve: Qd = 3500 -…
Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chiefeconomist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. Thedemand curve is much more inelastic. The price elasticity of demand has decreased from:-5.76 to -2.70.”Before the campaign your price was $240 per pair of BBB Shorts. What should bethe new price? Please show calculations.
On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $30, $45, $60, $75, $90, $105, and $120 per bike. 1280 1200 Total Revenue 1120 - 1040 980 880 800 720 640 560 o15 30 45 60 75 90 105 120 135 150 165 180 PRICE (Dollars per bike) According to the midpoint method, the price elasticity of demand between points A and B is approximately ▼ Suppose the price of bikes is currently $30 per bike, shown as point B on the initial graph. Because the demand between points A and B is a $15-per-bike increase in price will lead to in total revenue per day. In general, in order for a price decrease to cause a decrease in total revenue, demand must be TOTAL REVENUE (Dollars)
Wally's World of Widgets hires you as their full-time economist. After studying their business, you realize that when the price of Widgets is $60.00 they sell 10,000 units a month and when they put Widgets on sale for $45.00 they sell 20,000 units more a month. A. Graph the given information. B.What is the arc elasticity over the relevant range? What does this number mean? I C. Use total revenue to explain if this is a good economic decision.
How did the market for milk get impacted as COVID induced lockdown started in the U.S. in mid-March 2020? Be sure to state how the demand and supply curves and elasticities changed or shifted if at all?
Genovia has experienced exceptional growth in recent years. Its GDP per capita (orIncome) has increased from around $30,000 to $50,000 in last 5 years. Over theperiod quantity demanded of personal cars has increased from 450,000 units per yearto 600,000 units. Quantity demanded of public transport, however, has declined from10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell whichproduct is a normal good and which one is inferior.
The demand function for SkanDisc 2GB thumb drives is given by p- 4(x + 3) e"/a where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Compute the price, p, when x 6. Do not round your answer. Price, p- 36e dollars Use implicit differentiation to compute the rate of change of demand with respect to price, p, when x- 6. Do not round your answer. Rate of change of demand, x' x thousands of units per dollar Compute the elasticity of demand when x - 6. Do not round your answer. Elasticity of Demand-