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 $0.30 per minute.How many minutes will high-demand consumers purchase? A) 60 B) 30 C) 70 D) 170

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Quizplus · Accepted Answer

For high-demand consumers, the monthly demand curve is given as Q^d_H = 200 - 100P At a price of $0.30 per minute, we have P = 0.30, and Q^d_H = 200 - 100(0.30) = 170 Therefore, each high-demand consumer will purchase 170/100 = 1.7 minutes. The total number of minutes purchased by high-demand consumers will be: 100 x 1.7 = 170 Therefore, the best choice is D.

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