The Price Elasticity of Demand for Melocotones Is Constant and Equal

question 1

Multiple Choice

The price elasticity of demand for melocotones is constant and equal to -2.The melocotone market is controlled by two Cournot duopolists who have different cost functions.One of the duopolists has a constant marginal cost of $975 per ton and produces 70% of the total number of melocotones sold.The equilibrium price of a ton of melocotones must be

• A)$1,500.
• B)$750.
• C)$975.
• D)$3,000.
• E)$2,250.

Explain the factors that influence the market value of a bond.

Understand the impact of yield to maturity (YTM) on bond pricing and investment returns.

Explain the significance and definition of bond pricing terms like face value, clean price, and dirty price.

Understand the concepts of bond risk including interest rate risk, default risk, and inflation risk.

---

Definitions:

Price Effect

The impact on consumer behavior and purchase decisions resulting from a change in the price of a good or service.

Quantity Effect

The variation in overall income derived from altering the amount of a product sold, while keeping its price stable.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.

Producer Surplus

The mismatch between the price point producers are prepared to accept for a good or service and the actual price they end up receiving.