How to solve economics question?

Posted on 2014-12-17 05:52:00 in Economics by MICHEL

a) Write the inverse demand function.

b) Write expressions for the Total Income (I) and the Marginal Income (Img) as functions of the total number of tickets sold.

c) What price will generate the most income? What amount of tickets will be sold at this price?

d) Selling the amount of the previous section, what is marginal income? What is the price elasticity of demand for tickets? Is the stadium full? Due to the current good luck of the team, the demand for tickets has increased and has become q (p) = 300.000-10.000p.

e) What is the new inverse demand function?

f) Write an expression for marginal income as a function of the number of entries.

g) Ignoring stadium capacity, what price will generate the most income? How many tickets would be sold at this price?

h) Taking now into account the capacity of the stadium, how many tickets will go on sale to maximize revenue? At what price?

i) When the tickets are sold at the price of the previous section, what would be the marginal income from selling an extra ticket? What is the elasticity of demand for tickets to this combination of price and quantity?

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