Refer to Figure 3.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, what is the market quantity demanded at a price of $9?
A. 2
B. 4
C. 6
D. 10
Answer: D
You might also like to view...
A firm engaging in group price discrimination
A) divides customers into groups and then charges each customer within each group a different price, similar to perfect price discrimination. B) divides customers into groups and then charges each group a different price. C) bundles products into groups and sells the groups at different prices. D) finds the average reservation price for a group of customers and sell its goods at that price.
If it costs View Your World, a high-end window manufacturer, $30 per window to install a higher quality glass in its windows and consumers will pay an additional $28 per window for the improvement, which of the following is true?
A) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. B) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. C) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. D) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
The main difference between new classical and new Keynesian theory is with respect to the assumption of
A) how expectations are formed. B) how flexible wages and prices are. C) the slope of the SRAS curve. D) the slope of the AD curve.
A firm with market power faces the following estimated demand and average variable cost functions:Qd = 39,000 - 500P + 0.4M - 8,000PRAVC = 30 - 0.005Q + 0.0000005Q2where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $2. Total fixed cost is $100,000. What is the estimated demand function for the firm?
A. Qd = 40,000 - 200P B. Qd = 39,000 - 500P C. Qd = 39,000 - 200P D. Qd = 71,000 - 500P