Suppose Always There Wireless serves 100 high-demand wireless consumers,who each have a monthly demand curve for wireless minutes of Q^d_H = 200 - 100P,and 300 low-demand consumers,who each have a monthly demand curve for wireless minutes of Q^d_L = 100 - 100P,where P is the per-minute price in dollars.The marginal cost is $0.25 per minute.Suppose Always There Wireless charges $0.25 per minute.How many minutes will high-demand consumers purchase? A) 75 B) 175 C) 200 D) 100

Question

Quizplus · Accepted Answer

For high-demand consumers, the demand curve is given by Q = 200 - 100P. Substituting P = $0.25 into the demand equation gives Q = 200 - 100(0.25) = 200 - 25 = 175. Therefore, high-demand consumers will purchase 175 minutes.

Suppose Always There Wireless Serves 100 High-Demand Wireless Consumers,who Each