1)lf the price of a product increases by 10 % and demand decreases by 25%. It is the situation of: A) Relatively elastic demand B) Unitary elastic demand C) Relatively inelastic demand D) Perfectly elastic demand 2. Which one of the following is average total cost (ATC) if the output is 100 units and total cost is RO 30000? A) 300 B) 30100 C) 150 D) 3100
Q: What are payroll taxes?
A: Tax refers to the compulsory charge paid by the individuals to the government for the services avail...
Q: 4. Solve the following game. Explain its solution. Player 2 Left Center Right -2 ,-2 -1 ,1 Player 1 ...
A: Nash equilibrium is that condition where no one player has an incentive to deviate from their initia...
Q: Lara deposited 1000 in her bank account at the beginning of every quarter for 9.5 years. Interest pr...
A: Monye is determined on the basis of the rate of interest. The rate of interest increases then the mo...
Q: Use the World View to answer the questions. Be sure to spell the country correctly. WORLD VIEW Com...
A: Inflation: When price increases at a continuous rate then this can be considered inflation, when inf...
Q: The demand and supply functions for basic cable TV in the local market are given as: QD = 200,000 –...
A: We have The demand function for basic cable TV: QD=200,000-4,000P .... (1) The supply functio...
Q: In the following mixed-strategy, static, zero-sum game, calculate the optimal value for x (proportio...
A: The matrix can be written as
Q: For the following cost function TC = a + bQ – cQ 2 + dQ 3 , determine the equations for TFC, TVC, AF...
A: Given: The cost function is: TC = a + bQ − cQ2 + dQ3 To Find: The equations for TFC, TVC, AFC, AVC,...
Q: How is helping someone in the culture of poverty different than helping someone in the true lower cl...
A: At its most basic level, poverty is described as a lack of basic necessities such as food and shelte...
Q: What is a monetary union? Discuss the advantages and drawbacks in forming such an arrangement
A: The agreement b/w two or more nations to create a common currency region is known as monetary union....
Q: PRODUCTION 2 4 10 12 14 LEVEL MARKET 3 3 3 3 PRICE ТОTAL INCOME TOTAL FIXED COST 14 14 14 14 14 14 1...
A: The following formulas need to calculate the value of the missing colunm: Total Income = Production ...
Q: A company launched a sales campaign and appointed 110 salesmen for this purpose. At the end of the p...
A:
Q: What does it mean by the monetary approach to currency depreciation when pertaining to international...
A: International trade agreements govern the exchange of goods and services between two or more nations...
Q: 4. Suppose that there is a negotiation between two players over a painting. Person 1, the seller, ha...
A: In-game theory, a subgame perfect equilibrium is a more advanced variation of Nash equilibrium used ...
Q: Answer the following, providing a graphical illustration along with your answer where necessary: a) ...
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost th...
Q: 16. Suppose that planned investment and planned government purchases do not depend on income: I = 15...
A: (16) Aggregate expenditure equation: AE = C + I + G => AE = 2 + 0.75Y - 0.75T + 15 + 17 => AE ...
Q: 4 3. A firm’s production function is q = 8K.25L.75 MPL = 6 K.25L-.25 MPK = 2 K-.75L.75 a. Determine ...
A: short-run cost function and the long-run cost function given below.
Q: ext year after Matt decides to renew his lease. (maybe unwisely depending on how you swered the prev...
A: It is given that Chris Hemsworth lie about body straighting capabilities of rutabaga and the demand ...
Q: a competitive market in long-run equlibrium to be Pareto-efficient... ect one: a. Firms do not make ...
A: For a competitive market in a long running equilibrium to be pareto efficient, firm do not make any ...
Q: process plant making 5000 kg/day of a product selling for $1.75/kg has annual variable production co...
A: *Answer:
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Hi! Thank you for the question. As per the honor code, We’ll answer the 7th question. Please submit ...
Q: Two types of light bulbs are manufactured by firm A and firm B. The life of bulb type A is normally ...
A:
Q: In a competitive market with free entry and exit from the market a permanent rise in demand will lea...
A: A permanent increase in demand raises market quantity, and the market price for each business climbs...
Q: Mr. Gonzales wants to know the ending balance after 3 years based on monthly deposits of $500 in his...
A:
Q: The Nash bargaining solution between the employer and the worker satisfies the fol- lowing maximizat...
A:
Q: Refute this statement To ensure that we always have an efficient economy and every firm has a chanc...
A: Intellectual property rights refer to the protection of artistic work, innovations, names, images an...
Q: 1)lf the price of a product increases by 10 % and demand decreases by 25%. It is the situation of: A...
A:
Q: A monopoly faces the demand curve P= 12-1.00. where P is measured in dollars per unit and Q in thous...
A:
Q: A man buys a motor cycle. There will be no maintenance cost the first year as the motor cycle is sol...
A: The present value is calculated as the sum of the product of future cash flows and present value fac...
Q: What is the difference between pricing objectives and pricing constraints?
A: In economics, the terms objective and constraints have different meanings to explain economic concep...
Q: Two firms compete in price in a market for infinite periods. In this market, there are N consumers; ...
A: Collusion is referred to as a non-competitive, secret and in some cases illegal agreement happening ...
Q: Suppose that real GDP is currently $1.24 trillion, potential GDP is $1.33 trillion, the government p...
A: Aggregate demand is a sum of consumption spending, investment, government spending and net exports. ...
Q: A rate of return analysis was conducted for the following alternatives, based on the table below. In...
A: Given information
Q: Consider a firm with fixed costs of production (F). Which FOUR of the following statements are corre...
A: To select the correct options, let's try to understand the relationship between the two curves with ...
Q: 1. Explain the importance of Sovereignty in a State. 2. Discuss the necessity of the Government in a...
A: 1) Sovereignty is a state trait that is both a concept and a reality in terms of state authority.It ...
Q: 1. JRT publishes invest P100,000 today to be paid in five years in one lump sum at 12% compounded an...
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost th...
Q: describe the specific influences of Quesnay and the Physiocrats on Adam Smith
A: Adam Smith was a Scottish philosopher as well as an economist who was a pioneer of political economi...
Q: and serves an average of 525 customers per week. During a recent promotion, the restaurant manager ...
A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in pric...
Q: The business manager of a large company wants to check the inventory records against the physical in...
A:
Q: 1. Under what conditions and assumptions do markets maximize social welfare? 2. The maximization ...
A: here we answer the following questions as follow;
Q: Suppose that the world demand and supply elasticities of crude oil are -0.906 and 0.515, respectivel...
A: Solution:- 1) If the demand curve is linear, it is in the form of QD = a + bP Also, we know that Ed...
Q: Out of 20,000 customers' ledger accounts, a sample of 600 accounts was taken to test ´New the accura...
A:
Q: Suppose a French car costs 22,000 Euro, and a similar Turkish car costs 300,000 TL. If Euro/TL exhan...
A: Given; Price of car in France= 22000 Euro Price of car in Turkey= 300000 TL Nominal exchange rate= 1...
Q: Production function 9.= fCL)where average product of labour LAPL) and murginal product of labaur CMP...
A: We will first understand the relationship between the MP, AP curves. The curves are constructed by c...
Q: If a 20% change in price results in a 15% change in quantity supplied, then the price elasticity of ...
A: Elasticity is a key concept in economics that describes how changes in determinants affect the quant...
Q: A pure monopolistic firm knows the following about its costs and revenue. The firm would like to max...
A:
Q: 8. Consider each table below. Is the data presented consistent with the Phillips curve model of wage...
A: The Phillips curve refers to the economic model that states an inverse relationship between unemploy...
Q: The __________ industrial sector contains small, less profitable firms operating in more competitive...
A: Ans. Monopolistic A monopolistic market is a theoretical situation in which only one corporation can...
Q: At the beginning of year 1 the Terranian central bank conducted tek100 million of dollar selling/ter...
A: The way a country manages its currency in the foreign exchange market is referred to as an exchange ...
Q: The hypothetical economy shown below produces 3 goods: Good A, Good B, and Good C. The following i...
A: Calculate the nominal GDP (or current dollar GDP) for 2021.Nominal GDP=sum of (curent year price * c...
Q: 4) Find the elasticity of substitution(s) for the following production functions. a.) q = 10 Kº.2L0....
A: Elasticity of substitution is a measure to determine how easily factors of production can be substit...
01
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Suppose the demand function for a firm’s product is given by ln Qdx = 7 − 1.5 ln Px + 2 ln Py − 0.5 ln M + ln A Final wherePx = $15, Py = $6, M = $40,000, and A = $350 . Determine the own price elasticity of demand, and state whether demand is elastic, inelastic, or unitary elastic. b. Determine the cross-price elasticity of demand between good X and good Y, and state whether these two goods are substitutes or complements. c. Determine the income elasticity of demand, and state whether good X is a normal or inferior good. d. Determine the own advertising elasticity of demandPNG’s managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5000 and total variable costs are $4000, based on production of 400 units. The following values may be useful. 1n (0.2) = –1.609 1n (1.5) = 0.405 1n (0.5) = –0.693 1n (4000) = 8.294 1n (0.8) = –0.223 1n (5000) = 8.517 What is PNG’s price elasticity of demand? –0.252 +0.322 –3.973 +3.108The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomac’s closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $450. Potomac noticed that its sales volume declined to 4,500 units per month after Spring City announced its price cut. a. What is the arc cross elasticity of demand between Potomac’s oven and the competitive Spring City model? b. Would you say that these two firms are very close competitors? What other factors could have influenced the observed relationship? c. If Potomac knows that the arc price elasticity of demand for its ovens is −3.0, what price would Potomac have to charge to sell the same number of units it did before the Spring City price cut?
- Consider the demand function d(p)=300e^−0.01p^2 items purchased when charging p dollars per item. Currently the price is 9 dollars per item. Use marginal analysis to estimate the decrease in demand when the price increases by 0.3 dollars per item. Demand would decrease by approximately _____ items. Round your answer to three decimal places.Worldwide annual sales on smartphones over a two year period were approximately q=-4p+3,020 million phones at a selling price of $p per phone. (a)obtain a formula for the price elasticity of demanding e. E=_____ (b) in one of the years the actual selling price was $305 per phone. What was the corresponding price elasticity of demand? E=_____ What would’ve been the resulting annual Revenue? $_____billionThe Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomac's closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $545. Potomac noticed that its sales volume declined to 4,500 units per month after Spring City announced its price cut. a) What is the arc cross elasticity of demand between Potomac's oven and the competitive Spring City model? b) If Potomac knows that the arc price elasticity of demand for its ovens is −2.0, what price would Potomac have to charge to sell the same number of units it did before the Spring City price cut?
- In one month, a Pizza Hut restaurant sold 5500 personal pizza at RO 4.50 per pizza. When this restaurant increased its price by 30%, its total revenue for the next month increased to RO 18,720. As a result of this price increase, however, the monthly sales of POP decreased from 3500 to 3000 cans. Using the arc elasticity method: (i) Find the own price elasticity of demand for this restaurant’s pizza. (ii) Find the cross elasticity of demand for pop with respect to the price of the pizzas. Are the two substitutes or compliments?Suppose the supply and demand curves for a particular product are given by: QS = -20 + 2P QD =100 - 2P where QS and QD are quantities in units and P is the price per unit. (b) Calculate both the demand and supply elasticity around the equilibrium point. [Hint: you can use either the point method or the average arc (midpoint) method.] [5]Mr. Haris has the following demand equation for a certain product: Q = 30 - 2P. At a price of $7, what is the point elasticity? Between prices of $5 and $6, what is the arc elasticity? If the market is made up of 100 individuals with demand curves identical to Mr. Smith’s, what will be the point and arc elasticity for the conditions specified in parts a and b?
- These questions require application of economic theory relating to elasticity of demand andsupply. All calculations must be shown in full. Answer ALL the questions.Q.3.1 A store that sells maize meal discovers that when the price of 1kg maize meal IsR24 per kilogram, the quantity demanded is 306 kgs per week. When the pricedecreases to R21 per kg, then the sales increase to 340 kgs per week. Use thisinformation to answer questions Q.3.1.1 and Q.3.1.2 below.Q.3.1.1 Determine the price elasticity of maize meal using the Arc method. (5)Q.3.1.2 Discuss the relationship between the price elasticity of maize mealand the total revenue the store received from the sales. Advise thestore on an appropriate pricing strategy.(7)Q.3.2 The store selling maize meal makes a further discovery, when the price of ricechanges from R30 per kg to R26 per kg, then the quantity of rice demandeddecreases from 1360 kg per month to 1238 kg per month. Use this informationto answer Q.3.2.1 and Q.3.2.2 below.Q.3.2.1…An economic consultant for Gumbcorp. recently provided the firm’s marketing manager with this estimate of the demand function for the firm’s product: Qxd=12,000 -3Px + 4Py - 1M + 2Ax where Qxd represents the amount consumed of good X, Px is the price of good X, is the price of good Y, M is income, and Ax represents the amount of advertising spent on good X. Suppose good X sells for $200 per unit, good Y sells for $15 per unit, the company utilizes 2,000 units of advertising, and consumer income is $10,000. How much of good X do consumers purchase? Are goods X and Y substitutes or complements? Is good X a normal or an inferior good1. Estimated Demand. You are the manager of a firm that sells packs of coffee pods for coffee makers. You typically sell the packs for $24 and sell an average of 2,470 packs per month. You decide to raise the price to $28 per pack. When you do this your monthly sales fall to 1,482 packs per month. a. Assuming that your firm’s demand function is linear (i.e., takes the form QP=a-bP), calculate the linear demand function for the packs 2. Markups and elasticities. The marginal cost (MC) of producing your product is $16 a. Using the estimated demand curve from the previous question, calculate the point price elasticities of demand at the two price from question 1 b. Use the markups and elasticities and indicate whether the two prices are higher or lower than the profit maximizing price. NOTE: YOU DO NOT NEED TO CALCULATE THE PROFIT MAXIMIZING PRICE YET.