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

Author Question: If differentiation makes the market demand curve less elastic, then A) consumer surplus ... (Read 71 times)

mpobi80

  • Hero Member
  • *****
  • Posts: 519
on: Jul 1, 2018
If differentiation makes the market demand curve less elastic, then
 
  A) consumer surplus increases.
  B) the market structure changes into a monopoly.
  C) price markup over marginal cost is lower than when products are identical.
  D) price markup over marginal cost is higher than when products are identical.

Question 2

Suppose Charley only purchases boardgames (B) and haircuts (H) with his income.
 
  If the price of boardgames increases by 100 while the price of haircuts increases by 300, how will the MRT change (consider the budget constraint drawn on a graph with boardgames on the horizontal axis)?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

onowka

  • Sr. Member
  • ****
  • Posts: 353
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

Before the price change, the MRT = -pB/pH. After the price change, the
MRT' = -(2)pB/(4)pH = MRT/2. The MRT is half.


mpobi80

  • Member
  • Posts: 519
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

adf223

  • Member
  • Posts: 304
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

The titration curve of acetic acid The titration curve of acetic acid
Differentiation and Development of the Sex Organs Differentiation and Development of the Sex Organs
Unregulated populations "J-shaped curve" Unregulated populations "J-shaped curve"
Growth in the demand for oil from the developing world Growth in the demand for oil from the developing world
The Lorenz Curve for the United States, 2009 The Lorenz Curve for the United States, 2009
The Frequency Distribution Curve of a Drug The Frequency Distribution Curve of a Drug
Video: Introduction to Insulin

For a complete list of videos, visit our video library