Survey

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

Home economics wikipedia, lookup

Economic equilibrium wikipedia, lookup

Supply and demand wikipedia, lookup

Transcript
```Homework # 1
Week 1
Due Thursday
7 Oct
A Simple Demand Curve
• Suppose that a consumer’s demand is given by
– Quantity Demanded (Qd) = 110 – 1*Price
• Compute and graph the demand curve for prices from 0 to 100
[P{0:110}] in 10 increments
• If a supplier can only charge the same (1) price for all units sold,
what is the total revenue (P* Qd) at each price,{0:110})
• At P = 50
– What is the consumer’s quantity demanded, how much (in total) did
he/she have to pay for it?
– How much would the consumer have paid if the supplier could have
charged different prices equal to the consumer’s maximum willingnessto-pay for each block of 10 units (e.g., 10, 20, 30, 40, 50) up to 50 units?
– Graphically show a) what the consumer did pay and b) what they would
have been willing to pay
• What is the slope of this demand curve? What is the
economic interpretation of the slope?
Hints
• See slide 12 in lecture_01.2b
```
Related documents