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. What is Coke's inverse demand function?
A. QC = (90 - 400PP) - 500PC
B. PC = (0.18 + 0.8PP) - 0.002QC
C. QC = (490 - 400PC)
D. PC = (400 - 500QC)
B. PC = (0.18 + 0.8PP) - 0.002QC
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A. illegal economy. B. soft market. C. underground economy. D. None of these statements is true.
Which of the following would be a part of macroeconomics?
A) the change in automobile sales due to a change in the price of automobiles. B) a tax reduction impact on the profits of a business. C) inflation. D) the unemployment of workers displaced by technological change in the typesetting industry.
How is the price-change formula to predict the change in the equilibrium price resulting from a change in demand calculated?
A. by dividing the percentage change in price by the sum of the price elasticities of supply and demand B. by dividing the percentage change in demand by the sum of the price elasticities of supply and demand C. by dividing the percentage change in supply by the sum of the price elasticities of supply and demand D. by dividing the percentage change in income by the sum of the price elasticities of supply and demand
In general, the costs tariffs and quotas impose on consumers are
A) large in total and large per person. B) small in total but relatively large per person. C) large in total but relatively small per person. D) small in total and small per person.