8:27 PM Sat Nov5 .g. ..| ?48%I - Take Quiz The demand function for ACME Widgets is (1 : q(p.ps. Y), where: o q : monthly demand for ACME Widgets (measured in 1000s of units). 0 p : price of an ACME. Widget (measured in dollars). 0 ps : average price of substitutes for ACME Widgets (measured in dollars). 0 Y: average monthly income in the market for ACME Widgets (measured in $1000s). and z/(1().9.5) : 4. 7 8g/8p(10.9.5) : 4148 (?1,/6ps(1()_9 '5) : 0. 75 aq/an10.9.5) : 0.26 (a) Suppose that ps increases to 9.32 and Y increases to 5.4, but p does not change. In this case, demand will increase by about A v /\\ V , and keep demand at about 4700 unitss'month (as it was before). (c) If they do this, then the change in AC ME's monthly revenue will be about [. l] C 8:36 0 Take Quiz Exit (measured in dollars). ps = average price of substitutes for ACME Widgets (measured in dollars). Y = average monthly income in the market for ACME Widgets (measured in $1000s). and q(10,9,5) = 4.7 oq/op(10,9,5) = -0.48 . aq/ops(10,9,5) = 0.75 . aq/aY(10,9,5) = 0.26 (a) Suppose that ps increases to 9.32 and Y increases to 5.4, but p does not change. In this case, demand will increase by about [ Select ] V [ Select ] ase their 344 units/month 466 unit/month 278 units/month e in ACIVIL's monty revenue will be about [ Select ]Take Quiz (measured in dollars). 0 195' = average price of substitutes for ACME Widgets (measured in dollars). 0 Y = average monthly income in the market for ACME Widgets (measured in $1000s). and .qaa99=47 . aq/ap(]0,9,5) = 0.48 oamaxaagy=075 .aWUQQ=026 (a) Suppose that 1.95 increases to 9.32 and Y increases to 5.4, but 1;) does not change. In this case, demand will increase by about [Select] 0 . (b) In this case, ACME can increase their price (p) by and keep der J [ Select ] units/month (c) If they ck $0.64 ACME's mo $0.52 [Select] $0.72 'hkeQuk (measured in dollars). 0 195' = average price of substitutes for ACME Widgets (measured in dollars). 0 Y = average monthly income in the market for ACME Widgets (measured in $1000s). and . q(10,9,5) = 4.7 . aq/ap(]0,9,5) = 0.48 . aq/aps('10,9,5) = 0.75 . aq/aY('10,9,5) = 0.26 (a) Suppose that 1.95 increases to 9.32 and Y increases to 5.4, but 1;) does not change. In this case, demand will increase by about [Select] 0 . (b) In this case, ACME can increase their A V price (p) by [ Select] 1 J [Select] I $248 e in 2 about $312 $178