A shipping company moves cars from Texas to Maryland with the demand curve Q = 5000 - 100P and ships motorcycles back from Maryland to Texas with the demand curve Q = 1000 100P. The cost of round trip is $20. Find the - equilibrium price and quantity graphically. Is the $20 price the round-trip price? If not what is the best price for the round-trip?

A shipping company moves cars from Texas to Maryland with the demand curve Q = 5000 - 100P and ships motorcycles back from Maryland to Texas with the demand curve Q = 1000 100P. The cost of round trip is $20. Find the - equilibrium price and quantity graphically. Is the $20 price the round-trip price? If not what is the best price for the round-trip?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 11RQ: As a general rule, is it safe to assume that a change in the price of a good will always have its...

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