This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If a price of corn is 3.00 a bushel, 5,000 bushels would be demanded. If the price rises to 4.00 a ... (Read 177 times)

tingc95

  • Hero Member
  • *****
  • Posts: 556
on: Jul 1, 2018
If a price of corn is 3.00 a bushel, 5,000 bushels would be demanded. If the price rises to 4.00 a bushel, 4,000 bushels would be demanded.
 
  a. What is the (arc) price elasticity of demand?
  b. Based on this answer, if the price of corn rose to 5.00 a bushel, what would be the demand for corn?
  c. If the price of corn decreased from 4.00 to 3.00 a bushel, what would be the change in total revenue for sellers of corn?
  d. If the price of corn increased from 4.00 to 5.00 a bushel, what would be the change in total revenue for sellers of corn?

Question 2

If firms are earning economic profit in a monopolistically competitive market, which of the following is most likely to happen in the long run?
 
  A) Some firms will leave the market.
  B) Firms will join together to keep others from entering.
  C) New firms will enter the market, thereby eliminating the economic profit.
  D) Firms will continue to earn economic profit.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cici

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jul 1, 2018
Answer to Question 1

(a) -0.778; (b) 3,309; (c) -1,000; (d) +545

Answer to Question 2

C


tingc95

  • Member
  • Posts: 556
Reply 2 on: Jul 1, 2018
Wow, this really help

lcapri7

  • Member
  • Posts: 350
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Results of selective breeding for oil content in corn plants. Results of selective breeding for oil content in corn plants.
Hybrid vigor in corn Hybrid vigor in corn
corn snake corn snake
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
"The Department of Agriculture came out today with its prediction for food price "The Department of Agriculture came out today with its prediction for food price
Video: Interview with Person having Obsessive Compulsive Disorder

For a complete list of videos, visit our video library