10. A market demand curve is likely to shift to the right when: a. average income falls. b. prices fall. prices rise. population increases. e.new firms enter the market.
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![aabove P
b. below P
other than P
c.
d. below P
above P
c.
10. A market demand curve is likely to shift to the right when:
a. average income falls.
b. prices fall.
Sprices rise.
population increases.
c. new firms enter the market.
11. The formula for the arc price elasticity can be written (where AQ denotes the change in Q) as:
a. n-[AQ/Q+Q₂)/AP/(P₁ + P₂)].
b. n=[AQ/(Q₁ +9₂)]/[AP/(Q₁ + Q₂)].
Equation on formul
S
c. n-[AQ/(P +PAP/(Q+Q)]. -
d. n=[AP/(P+ P₂)]/[AQ/(Q+Q₂)].
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- (Categories of Price Elasticity of Demand) For each of the following absolute values of price elasticity of demand, indicate whether demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. In addition, determine what would happen to total revenue if a firm raised its price in each elasticity range identified. Absolut Value Elasticity Effect of Price Increase a b c dExplain the term price elasticity of demand? How is it measured? What factors influence market demand for products? If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the optimal sale price? (Hint: apply the mark-up rule) (600-700 words)Explain the term price elasticity of demand?How is it measured?If the price elasticity is -3 and RM 200 is the marginal cost of product x,what should be the optimal sale prince?(hint:apply the mark-up rule)
- Dr/Sr means Short run of Supply and Demand, DL/Sl means Long run of Supply and Demand. Equilibrium is 140, 1500The longer curly bracket is long run, the shorter one is short run.In the short run, the price elasticity of demand is equal to what via midpoint method? (-.63,.38, or -.33) In the long run, the price elasticity of demand is equal to what via midpoint method? (.83,-.33, or -.63)QUESTION 3 Explain the term price elasticity of demand?How is it measured? If the price elasticity is -3 and RM 200 is the marginal cost of product X,what should be the optimal sale price? (Hint:apply the mark -up rule)Fill in the blanks for each price-quantity combination listed in the following table. What relationship have you depicted? Price P Q Elasticity Total Revenue $9 1 $8 2 ________ ___________ $7 3 ________ ___________ $6 4 ________ ___________ $5 5 ________ ___________ $4 6 ________ ___________ $3 7 ________ ___________ $2 8 ________ ___________ I'd like full answer, i really appreciated
- Explain the term price elasticity of demand? How is it measured? If the price elasticity is -3 and RM 200 is the marginal cost of product X, what should be the optimal sale price?Answer with graph (Hint: apply the mark-up rule)Good or Service Price Elasticity Income Elasticity Beef -0.5 0.51 Long Distance Telephone -0.32 1.2 Cigarettes All smokers -0.7 0.9 Ages 15-18 -1.4 1.5 What will happen to sales for long-distance telephone if its price increases by 5% and income increases by 8%? Select one: a. Sales will decrease by 5%. b. Sales will increase by 5%. c. Sales will decrease by 8%. d. Sales will increase by 8%.Points Price Qty Demanded A 50 150 B 45 200 C 40 250 D 35 300 E 30 350 F 25 400 G 20 450 H 15 500 I 10 550 Please add a fourth column for Total revenue and a fifth column for Price Elasticity of Demand The income of Mr. De la Cruz increased from P300 to P450 a day. His demand for grocery items increased from 200 to 500. Compute for his income elasticity of demand. The price of product A increased from P20 to P40. The demand for Product B went up from 100 to 200. Calculate the cross elasticity of demand.
- Assume that you are in an interview session and the panel asks you to give a pricing decision that will maximize company’s interest (revenue maximization). Price Qd Qs 10 80 20 11 75 30 12 70 40 13 65 50 14 60 60 15 55 70 16 50 80 This is demand and supply schedule, estimate the equations, calculate the elasticity, and justify your positions based on your calculations. Based on your demand equation, what price will maximize the revenue and what would be the elasticity at the revenue maximization point.1 Consider a firm that estimates that its price elasticity of demand equals -1.5. Price equals $36 and the marginal cost of production equals $12. Is this firm maximizing profit? Explain. If not, should the firm increase or decrease its price?Can you assist with questions 2 and 3 please. (2) The price p (in dollars) and the quantity q sold of a certain product obey the demand equation q=800-20 and 0 ≤ p ≤ 40 (i) Express the revenue R as a function of q. (ii) What is the revenue if 20 units are sold? (iii) What quantity q maximizes revenue? What is the maximum revenue? (iv) What price should the company charge to maximize revenue? (v) What price should the company charge to earn at least $3500 in revenue? (3) You are an accountant for a manufacturer of radios. The demand function for the tablets is 2 p x = 40-4x2 where x is the number of tablets produced in millions. It costs the company $15 to make a tablet. (i). Write an equation for the manufacturer’s profit as a function of the number of tablets produced. (ii). The company currently produces 1 million 2tablets and makes a profit of $21,000,000, but you would like to scale up production a bit. What greater number of tablets could the company produce to…