How many will be imported and at what price will they sell?

The demand for imported Honda automobiles is given by the following equation: Show more The demand for imported Honda automobiles is given by the following equation: QH = 1200 20PH + 10PC + 200PG The price of Hondas PH = 60 the price of Chevrolets PC = 70 and the price of gasoline PG = 1.5. (a) Calculate the point elasticity of demand for Hondas with respect to its own price the price of Chevrolets and the price of gasoline. (b) For each of Chevrolets and gasoline is it a substitute or complement for Hondas? (c) Calculate consumer surplus at the revenue-maximizing price for Hondas. (d) If the cost per Honda is 50 and the Honda importing agency behaves as a monopolist How many will be imported and at what price will they sell? (e) Redo part (d) on the assumption gasoline price rises to PG = 2.5. Show less

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