利物浦大学经济学原理课件3.doc

ECON 722 Tutorial 3 Suppose that at a price of $400, 300 tickets are demanded to fly from Ithaca, New York, to Los Angeles, California. Now the price rises to $600, and 280 tickets are still demanded. Assuming the demand for tickets is linear, find the price elasticities at the quantity-price pairs (300, 400) and (280, 600) The monthly market demand curve for calculators among engineering students is given by P = 100 –Q, where P is the price per calculator in dollars and Q is the number of calculators purchased per month. If the price is $30, how much revenue will calculator makers get each month? Find the price elasticity of demand for calculators. What should calculator makers do to increase revenue? What price maximizes total expenditure along the demand curve P = 27 – Q2? In 2001, X cost $3 and sold 400 units. That same year, a related good Y cost $10 and sold 200 units. In 2002, X still cost $3 but sold only 300 units, while Y rose in price to $12 and sold only 150 units. Other things the same, and assuming that the demand for X is a linear function of the price of Y, what was the cross-price elasticity of demand for X with respect to Y in 2001? According to an article in China Daily, China recently accelerated its plan to privatise tens of thousands of state-owned firms. Imagine that you are an aide to a senator on the Foreign Relations committee of the U.S. Senate and you have been asked to help the committee determine the price and quantity that will prevail when competitive forces are allowed to equilibrate the market. The best estimates of the market demand and supply for the good (in U.S. dollar equivalent rates) are given by Qd = 10 – 2P and Qs = 2 + 2P respectively. Determine the competitive equilibrium price and quantity. Based on your answer to question 5, one of the senators raises a concern that the free market price might be too high for the typical Chinese citizen to pay. Accordingly, she asks you to explain what would happen if the Ch