... for Type A travelers is
(0 .5) ( 650 - 3 75) (110) = $ 15, 1 25.
Consumer surplus for Type B travelers is
(0 .5) (400 - 250 )(90) = $6, 750
Total consumer surplus is $21,8 75.
e. Before EA started price ... function above, or:
TR = 40,000+7 ,50 0*3.7 5- 1 ,000*3. 75* 3. 75 = $54 ,062 .5.
Total cost is equal to fixed costs of $10,000. Profit with a two-part tariff is
$44,062...
... other hand, during this
particular period, large-capitalization growth stocks were the top performers.
Value-weighted indexes such as the S&P 50 0 are naturally concentrated in
such stocks, ... must
incorporate all historical data into prices. Under the semi-strong form of
the hypothesis, the market incorporates all publicly-available information
in addition to the historical data....
...
E
p
97
=
P
Q
ΔQ
ΔP
=
10. 35
75
(−38 .5) = 5. 31
E
p
98
=
P
Q
ΔQ
ΔP
=
10.48
70
(−38 .5) = 5. 76
E
p
AVE
=
P
97
+
P
98
2
Q
97
+
Q
98
2
Δ
Q
Δ
P
=
10.4 15
72 .5
(
−
38 .5)
=−
5. 53.
To derive the demand ... and then Q:
40 0-2 P=3P -5 0
P=90
Q=220.
b. If I =50 , find the market clearing price and quantity for the product.
Given I =50 , the demand curve becomes Q=30 0-2 P+4 *...
... curve are (5, 10), (10 ,5) , ( 25, 2), and (2, 25) . Erin receives a utility of
.2*10*10 *5* 5 =50 0 from the bundle (10 ,5) . Her indifference curve is
represented by the equation
50 0=.2F
2
C
2
, or 50 =FC. ... corner solution.
Meat
Potatoes
Indifference Curve for
U
= 100
50
25
75
100
25 50 75 100
1 25
Budget Constraint
A
Figure 3.14.d
15. Jane receives utility from da...