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Consider the example shown in Figure 2–1 , with the “martini-glass” shape showing the net price of the factory product. Suppose all consumers switch to spring-loaded sneakers, decreasing walking time per round-trip mile from 1/12 hours to 1/18 hours. a. The slope of the net-price curve changes to _____ and the width of the market area changes from 16 miles (8 on each side) to _____ miles ( _____ on each side). b. Using Figure 2–2 as a starting point, the spring-loaded sneakers change the number of factories in the 48-mile region from _____ to _____ , each with a market area _____ miles wide.
Chapter 2, Problem 4(choose chapter or problem)
Spring-Loaded Sneakers
Consider the example shown in Figure 2–1 , with the “martini-glass” shape showing the net price of the factory product. Suppose all consumers switch to spring-loaded sneakers, decreasing walking time per round-trip mile from 1/12 hours to 1/18 hours.
a. The slope of the net-price curve changes to _____ and the width of the market area changes from 16 miles (8 on each side) to _____ miles ( _____ on each side).
b. Using Figure 2–2 as a starting point, the spring-loaded sneakers change the number of factories in the 48-mile region from _____ to _____ , each with a market area _____ miles wide.
Questions & Answers
QUESTION:
Spring-Loaded Sneakers
Consider the example shown in Figure 2–1 , with the “martini-glass” shape showing the net price of the factory product. Suppose all consumers switch to spring-loaded sneakers, decreasing walking time per round-trip mile from 1/12 hours to 1/18 hours.
a. The slope of the net-price curve changes to _____ and the width of the market area changes from 16 miles (8 on each side) to _____ miles ( _____ on each side).
b. Using Figure 2–2 as a starting point, the spring-loaded sneakers change the number of factories in the 48-mile region from _____ to _____ , each with a market area _____ miles wide.
ANSWER:Step 1 of 3
Given data:
Consider the example shown in Figure 2–1, with the “martini-glass” shape showing the net price of the factory product. Suppose all consumers switch to spring-loaded sneakers, decreasing walking time per round-trip mile from 1/12 to 1/18 hours.