Question 1 - Let w.), D, d(.) respectively denote the willingness-to-pay (wtp) density function (distribution), market...

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Question 1 - Let w.), D, d(.) respectively denote the willingness-to-pay (wtp) density function (distribution), market size and demand function, where functions have price arguments. Parts a), b) and c) below are independent unless otherwise is stated. a) (0.5 pts) Suppose that everybody is willing to pay more than $5. Moreover, wtp density w is constant from the price of $5 to the price of $10. Express w(x) over 0 ≤ x ≤10. b) (0.5 pts) Suppose that w(x) =1/10 for 0 ≤ x ≤10 and D = 700. Obtain d(p) for 0 ≤p ≤10. c) (0.5 pts) Suppose that d(p)=600 - 30p, obtain the associated w and define a valid range for this w. Question 1 - Let w.), D, d(.) respectively denote the willingness-to-pay (wtp) density function (distribution), market size and demand function, where functions have price arguments. Parts a), b) and c) below are independent unless otherwise is stated. a) (0.5 pts) Suppose that everybody is willing to pay more than $5. Moreover, wtp density w is constant from the price of $5 to the price of $10. Express w(x) over 0 ≤ x ≤10. b) (0.5 pts) Suppose that w(x) =1/10 for 0 ≤ x ≤10 and D = 700. Obtain d(p) for 0 ≤p ≤10. c) (0.5 pts) Suppose that d(p)=600 - 30p, obtain the associated w and define a valid range for this w.

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a Since the willingnesstopay wtp density function is constant from the price of 5 to the price of 10 ... View the full answer