The function that relates the inverse of speed (1/5) (i.e., the time in minutes that it takes to travel 1 mile) to traffic (T) on a highway is 1/5 = 2 + 0.05T. Demand for traffic (measure as traffic volume per minute) on this road is T =3,100- 70-(1/S). a. Find the equilibrium traffic volume in the absence of any congestion toll. b. Find the marginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes. c. Find the optimal level of traffic volume. d. Find the optimal congestion toll, expressed in minutes. (Imagine that the congestion toll consists of sitting in the "penalty box" for this period of time.) undefined

A TV channel has estimated the demand for its service to be given by the following function: Q=9.83p-1.2A2.5Y1.6P0-1.4 where Q = monthly sales in units P = price of the service in $ A = promotional expenditure in $’000 Y = average income of the market in $’000 P0 = price of ‘home movies’ in $ The current price of the TV channel is $60, promotional expenditure is $120,000, average income is $28,000, and the price of ‘homemovies’ is $45. Indicate whether the following statements are true or false, giving your reasons and making the necessary corrections e. ‘Home movies’ are a substitute for the TV channel.f. A 5 per cent increase in income will increase demand by 16 per cent.g. A 10 per cent increase in price will reduce demand by 12 per cent.h. Current sales are over a million units a month. i. The demand curve for the channel is given by:Q=9.83p-1.2j. The channel’s sales are more affected by the price of ‘home movies’ than by the price of its own service.k. If the channel increases its…

When the price of a gallon of milk increases from $6 to $8, quantity demanded decreases to 27 gallons. Assuming the price elasticity of demand for milk is -0.3, what is the original quantity demanded? (assuming further that this is the point elasticity relative to the original point on the demand curve.) Please make sure you give a numerical answer with no units and/or space or period (.) or comma (,) before or after your answer. Enter your answer here

The demand for Widgets (QX) is a function of the price of widgets (PX), the price of woozles (PY), and per capita income (1): QX = 1950 - 10 PX + 5 PY-0.11 Currently, PX = 25, PY = 10, and 1 = 15,000. (a) Calculate the elasticity of demand for widgets with respect to its own I price, the price of woozles, and income. (b) Over what range of prices is the demand for widgets elastic? (c) If the cost per widget is 10 and the manufacturer behaves as a monopolist, how many widgets will be sold and at what price: (d) By how much must the price of widgets change if there is a 1% decrease in per capita income and the goal is to keep QX constant.

Consider the demand function for bicycles in South Florida:                  Q = 24 + 3Y – 1.2P where: Q is quantity demanded, Y is monthly income, and P is the price per unit. If/when P = $54, and Y = $2,300,      (a) Find the quantity of bicycles that would be sold.      (b) Calculate the amount of the seller's total revenue.      (c) Compute the price-elasticity of demand (Ep) for bicycles.      (d) Interpret your result in (c).      (e) Compute the income-elasticity of demand (Ey) for bicycles.      (f) Interpret your result in (e).

Suppose the demand for bicycles is given byQp = 10,000P- and the supply of bicycles is given by Qs = 0.01P3. (a) Using calculus and the given supply and demand curves, find mathematical expressions for the elasticities of demand and supply as a function of the price. Use these expressions to demonstrate that both curves have constant elasticity along their entire length. (b) Find the equilibrium price and quantity in this market mathematically.

Consider the market for laptops. Suppose that, due to a microchip shortage, laptop prices increased from $1,800 to $2,000. Over the same time period, laptop sales to consumers have decreased from 734,000 to 700,000 units. One way to calculate the elasticity of demand from these two points is to use the midpoint method (as discussed in the online lecture). Remember, use the absolute value for your answer. Using this method, the elasticity of demand for laptop computers is about: Select one: Oa. 1.27 Ob. 0.79 Oc. 2.48 Od. 0.45

Suppose that the price per unit p as a function of the demand is p=√1056 - 2x. (a) Calculate the price elasticity of demand when = 305. 305 therefore the demand is elastic 1056 - 2(305) n = (b) Calculate the price elasticity of demand when x = 406. 406 1056 - 2(406) η = therefore the demand is inelastic (c) Find the demand x that gives unit elasticity. x = 528

(a) Show that the function Q = a/P* , where a and c are constants, has a constant elasticity of demand: ɛg = -c. (b) (i) Determine the elasticity of demand for train journeys on a given route when the demand function is Q = 1200/P|.2, where Q is the number of fares in thousands. (ii) If the fare increases by 5%, use elasticity to calculate the percentage change in demand. (iii) If the fare decreases by 5%, use elasticity to calculate the percentage change in demand.

The figure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $35 but then falls to $25 due to a recession. What is the price elasticity of demand for taxi rides? Using the midpoint formula, the price elasticity of demand is. (Enter your response rounded to two decimal places.) Demand is unit-elastic inelastic elastic C Price (dollars per taxi ride) 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- 0+ 0 A B D 40,000 80,000 120,000 160,000 200,000 240, Quantity (taxi rides per day)