ECON201 Study Guide - Midterm Guide: Demand Curve, Granola, Al-Qaeda

• School: University of Waterloo
• Department: Economics
• Course: ECON201
• Professor: All

Document Summary

Do not write your name anywhere on the exam. The maximum points total is 20 + 2 bonus points. Budget your time well and show your work. Do not turn over page until the exam begins. 1: (8 points) donna(cid:146)s total willingness to pay schedule for hats is. 2: (3 points) assume that the demand curve for granola bars is d (p) = 900 (cid:0) p, where p is the price of a granola bar. Granola bars are produced and sold by a monopolist with the cost curve c (q) = 100 + 0 (cid:2) q; where q is the quantity of granola bars produced. Solve for the monopolist(cid:146)s optimal price: (3 points) will(cid:146)s total willingness to pay (twp) schedule for dvds is as follows. Suppose now that videosuper charges regular customers for each dvd and that video- Super sells dvds at a 50% discount to customers who choose to become club members by paying a membership fee.