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 182 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
Thanks for the timely response, appreciate it

bigsis44

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Ears and grains of modern corn and its ancestor, teosinte Ears and grains of modern corn and its ancestor, teosinte
In 2010 protesters in Washington, D.C., demanded that the Obama administration support liberalized i In 2010 protesters in Washington, D.C., demanded that the Obama administration support liberalized i
Anxiety rises as needs are not met. Without resolution, anxiety may lead to frustration, and then, ... Anxiety rises as needs are not met. Without resolution, anxiety may lead to frustration, and then, ...
A steady needle reading that rises 2 or 3 inches Hg when the engine speed is increased slightly ... A steady needle reading that rises 2 or 3 inches Hg when the engine speed is increased slightly ...
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
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: Introduction to Eating Disorders

For a complete list of videos, visit our video library