Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. If PP = $0.75, what is Coke's demand function?
A. QC = 90 - 400PC
B. QC = 390 - 500PC
C. QC = 390 - 400PC
D. QC = 465 - 400PC
B. QC = 390 - 500PC
You might also like to view...
If the newspaper reported that wearing plaid clothing was a sure way to obtain good grades, students'
A) budget lines would shift rightward to compensate for the higher price of plaid clothing. B) budget lines would rotate so that more plaid clothing would be purchased. C) preferences would change in favor of more plaid clothing. D) none of the above
If, as price increases by 10 percent, total revenue decreases by 10 percent, demand is
A. elastic. B. unit elastic. C. inelastic. D. perfectly inelastic.
Do donor countries gain anything from their aid?
What will be an ideal response?
Suppose that total expenditures for coffee reach a maximum at a price of $5 per pound. At this price, the demand for coffee is:
A. elastic. B. perfectly inelastic. C. unit elastic. D. inelastic.