Question 11 Gold buyers are located in New York and Zurich. At the current price

Question

Question 11 Gold buyers are located in New York and Zurich. At the current price of gold, $400 an ounce, worldwide demand for gold is 10,000 ounces (i.e. the sum of the demand in New York and Zurich); and the price elasticity of demand for gold in New York and Zurich are –3 and –2 respectively. If the slope of each demand curve in New York is the same as in Zurich, then the quantity of gold demanded by dealers in Zurich is

a. 10,000/3
b. 5,000
c. 6,000
d. 10,000
e. none of the above

Question 12 The market demand curve for tickets to the premiere of the movie Resident Evil: Afterlife is given as follows:

Q = 200 - 0.1P
At a price of $30, what is the aggregate consumer surplus from movie tickets?

$0.

$20.

$2,000.

$1,970.

$194,045.

Explanation / Answer

1. dQ/dPx400/Qn=-3 2. dQ/dPx400/Qz=-2 3. Qn=10,000-Qz -30,000+3Qz=-2Qz Qz=30,000/5=6,000 ounces

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.