This topic contains a solution. Click here to go to the answer

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 179 times)

tingc95

  • Hero Member
  • *****
  • Posts: 556
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
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
Excellent


lcapri7

  • Member
  • Posts: 350
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

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?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

For a complete list of videos, visit our video library