Homework 2

At point A on the demand curve shown below, how will a 1 percent increase in the price of the product affect total expenditure on the product? Price ($/week) 8 7 6 4 3 2 1 0 2 4 6 Demand 8 10 12 14 16 18 20 Quantity (units/week) Instructions: Enter your response rounded to the nearest whole number. Total expenditure will (Click to select) by about %.

Work out the price elasticity of demand for each and comment on your result. You must also do a comparitive analysis between all the elasticities found.(a) The price of a smart phone is currently £200, and the quantity demanded is 4million. Next year the price falls to £180 and the quantity demanded rises to 6million.(b) The price of pens today is £1, and the quantity demanded is 1million. Next year the price rises to £1.10 and the quantity demanded falls to 950,000

You have estimated that the price elasticity of demand for chai at your cafe is 0.9. If you lower the price of chai by 30% you should expect sales to rise by %. Type your numeric answer and submit

You have the following information for your product: The price elasticity of demand is -0.9. The income elasticity of demand is 0.5. The cross-price elasticity of demand between your good and a related good is 0. What can  you  determine  about  consumer demand  for  your  product  from  this information?

on white paper or typed

In the following demand curve, use the midpoint method and calculate the price elasticity   Between price of $60 and $70. (60, 20) (70,15)

Your price elasticity of demand for bananas is 4. If the price of bananas rises by 5 %, what is the percentage change in the quantity of bananas you buy?

Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf.  Your chief economist tells you that during the Covid-19 pandemic, "the taste for bicycling has changed.  The price elasticity of demand is much more inelastic.  The price elasticity of demand has decreased from -5.76 to -2.70." Before the campaign, your price was $240 per pair of BBB Shorts.  What should the new price be?

Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf.  Your chief economist tells you that during the Covid-19 pandemic, "the taste for bicycling has changed.  The price elasticity of demand is much more inelastic.  The price elasticity of demand has decreased from -5.76 to -2.70." Before the campaign, your price was $240 per pair of BBB Shorts.  What should the new price be? Please enter the new price here: $

Your Best Brand Bike Shorts - BBB Shorts have been flying off the shelf. Your chief economist tells you that during the Covid-19 pandemic, "the taste for bicycling has changed. The price elasticity of demand is much more inelastic. The price elasticity of demand has decreased from -5.76 to -2.70." Before the campaign, your price was $240 per pair of BBB Shorts. What should the new price be? Please enter the new price here: $ [a] Show only your answer in the box. Do not include steps in the box and do not add the dollar sign.

(Chapter 6) A company has been selling 800 units of a product per month at a price of $50. Showing your work, calculate the price elasticity that would represent the market's response to a $5 price increase if this increase causes: (a) Sales decline to 720 units per month (b) No sales change at all (c) A sales increase of 40 units per month

026. As a result of increasse in price by 20%, the quantity demanded decreases by 40%. Comment on PED.

If a manufacturer sets the price of the good at $ 10, he can sell 300 of this item in a year. If the producer raises the price of his good to $ 12, the sales amount remains at 240. i) What is the spring (arc) elasticity value of the demand for the product in question? ii) What is the point elasticity value of the demand for the good in question?

Your price elasticity of demand for bananas is 4. If the price of bananas rises by 5 percent, what is : The percentage change in the quantity of bananas you buy?

Problem 06-06 (Algo) According to the Income elasticity formula, Income elasticity of demand = E=% change in quantity demanded + % change in Income. By how much will popcorn sales increase if average Income goes up by 19 percent? (Assume the Income elasticity of popcorn is 3.29.) Instructions: Enter your response as a percentage rounded to one decimal place. percent

Q: Importance of elasticity in decision making for consumers and producers, explain your concept by plotting separate graphs.

Amir is selling lemonade this summer. He says that a 5% decrease in the price of a lemonade will increase the quantity demanded by 20%. The price elasticity of demand for lemonade is ______ and it is ________.     4; elastic     0.25; inelastic     4; inelastic     0.25; elastic