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

Author Question: Refer to the scenario above. If they are the only bidders in the auction and each bidder bids up to ... (Read 126 times)

lracut11

  • Hero Member
  • *****
  • Posts: 536
on: Jun 29, 2018
Refer to the scenario above. If they are the only bidders in the auction and each bidder bids up to his value for the good, the winner will earn a surplus of ________.
 
  A) 500
  B) 625
  C) 125
  D) 150

Question 2

What are the determinants of price elasticity of demand?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

amanda_14

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

There are three important determinants of the price elasticity of demand. These are:
a) Closeness of substitutes: As the number of substitutes grows, the price elasticity of demand increases.
b) Budget share spent on the good: As a consumer spends more of his budget on a particular good, the good's price elasticity of demand increases.
c) Available time to adjust: The price elasticity of demand is lower for a good in the short run in comparison to the long run.


lracut11

  • Member
  • Posts: 536
Reply 2 on: Jun 29, 2018
Excellent

xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

A hypothetical scenario illustrating the process of chemical selection A hypothetical scenario illustrating the process of chemical selection
Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
Refer to (d) in the figure above. This rectifier arrangement Refer to (d) in the figure above. This rectifier arrangement
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ... Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...
Video: Male Reproductive System - The gonadotropin releasing hormone

For a complete list of videos, visit our video library