1. Suppose the gate fee at a national park increases from $15 to $25 while no other variables change. In consequence, the daily quantity of visitors decreases from 2,200 to 1,800. Calculate the absolute value of the price elasticity of demand.
2. Demand is described by P=42-0.04Q+0.001A, where A is the industry-wide spending on advertising. Supply is described by P=7+0.01Q. Calculate the equilibrium quantity if A=20,000.
3. Demand is described by P=42-0.04Q+0.001A, where A is the industry-wide spending on advertising. Supply is described by P=7+0.01Q. Calculate the equilibrium price if A=20,000.
4. Demand is described by P=42-0.04Q+0.001A, where A is the industry-wide spending on advertising. Supply is described by P=7+0.01Q. Calculate the equilibrium quantity if adveristing is cut to 10,000 (A=10000).
5. Demand is described by P=42-0.04Q+0.001A, where A is the industry-wide spending on advertising. Supply is described by P=7+0.01Q. Calculate the equilibrium price if A=10000.