Economics

posted by .

There are two types of consumers of potatoes: 10 are rich and 50 are poor. Every rich consumer has a demand of 0 for a price of $500/ton; and his/her demand decreases by 1 ton each time the price increases by $1/ton. Every poor consumer has a demand of 0 for a price of $280/ton; and his/her demand decreases by 2 tons each time the price increases by $1/ton. Interpret the differences between the demand of the rich and the demand of the poor. What is the total market demand for potatoes? Give the equation of the demand curve Q = D(P)?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Econ MC

    Suppose that the equilibrium price in the market for widgets is $5. If a law reduced the maximum legal price for widgets to $4, a. consumer surplus would necessarily increase even if the lower price resulted in a shortage of widgets. …
  2. economics

    in the simple economics of a competitive market price increase under which condition: a)demand is constant.supply decline. b)demand decreases.supply increases. c)demand ans supply rise concomitantly.
  3. Microeconomics

    4. Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of bread and that potatoes are a consumer substitute for bread, we would expect the price of wheat to: A) …
  4. social sciences

    The market supply for potatoes in New York is 2,000 tons for a price of $200 a ton, and 5,000 tons for a price of $500 a ton. Between these two prices market supply is a straight line. What is the equation of the supply curve?
  5. economics

    4) From October 1994 to march 1995, the price of cotton increased from $0.65 to over $1 per pound, the highest level since civil war. According to business week, ‘supplies have dwindled because of poor crops in china, india, and …
  6. Calc

    The demand for a commodity generally decreases as the price is raised. Suppose that the demand for oil (per capita per year) is D(p)=800/p barrels, where p is the price per barrel in dollars. Find the demand when p=55. Estimate the …
  7. Math

    The demand for a commodity generally decreases as the price is raised. Suppose that the demand for oil (per capita per year) is D(p)=800/p barrels, where p is the price per barrel in dollars. Find the demand when p=55. Estimate the …
  8. Economics

    17. The current price for a good is $20, and 100 units are demanded at that price. The price elasticity of demand for the good is -1. When the price of the good drops by 10% to $18, consumer surplus: Increases or decreases by $__?
  9. Economics

    1.calculate the price elasticity of demand when the price was increased from R25 to R40 ?
  10. Business Math

    3.) The demand equation for a certain product is q=500-40p+p^2 here p is the price per unit (in dollars) and q is the quantity of units demanded (in thousands). Find the point elasticity of demand when p = 15. If this price of 15 is …

More Similar Questions