23) Suppose the price elasticity of demand for a product is 1.8. If a supplier wants to increase revenue, they shoud (increase or decrease price- SELECT ONE) increase 24) Goods that are considered luxuries tend to be more (price elastic or price inelastic- SELECT ONE) price elastic 25) When the price is increased and total revenues increase, the elasticity of demand is (price elastic or price inelastic- SELECT ONE) price inelastic

Q: 1. Trek Inc., which sells bikes, changed the price of their foldable bikes from P3,000 to P3,500. As…

A:

Q: Suppose the income elasticity of demand for toys is +2.00. This means that: a 10 percent increase in…

A: Income elasticity of demand refers to how the quantity of demand for goods changes when the income…

Q: 6. Discuss the implication or application of Price Elasticity to the formulation of BUSINESS…

A: The sellers, or firms in the market operate in the markets with the motive of earning highest…

Q: Exercise 1. The demand for your product X has been estimated to be QX = 7, 880 − 4PX − 2PY + PZ −…

A: Given; QX = 7, 880 − 4PX − 2PY + PZ − 0.1M If two goods (say good X & good Y) are substitutes of…

Q: 14 If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity…

A: Price elasticity of demand (PED or Ed) shows the responsiveness or elasticity about the quantity…

Q: The Pear company sells a smart phone for $250. Its sales have averaged 8,000 units per month over…

A: a).

Q: 5. If elasticity of demand is very low it shows that the commodity is

A: Elasticity of demand measures how much responsive the quantity demanded is towards any changes in…

Q: Part A If the price of Coke increases by 5%, the quantity of Pepsi demanded increases by 2%. Then…

A: In the market, cross-price elasticity of demand explain the connection between the two products…

Q: 3. Determinants of the price elasticity of demand Consider some determinants of the price elasticity…

A: 1) A good with many close substitutes is likely to have relatively elastic demand. Explanation-: An…

Q: The cross price elasticity between a pair of complementary goods will be Select one: a.Zero…

A: Two goods are complements if they are consumed together.

Q: (1)A consumer spends $ 40 on a good at a price of $ 1 per unit and $ 60 at a price of ` 2 per unit.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Suppose that a 20% increase in the price of gasoline causes a 5% decrease in the consumption of…

A: The price elasticity of demand gets used to measure the percentage change in the quantity demanded…

Q: 1. What is the price elasticity of demand for fast food in China? Is it elastic or inelastic?

A: The demand for fast food is highly responsive to the change in price. When the price of fast food…

Q: Calculate the cross price elasticity of product ( C ) compared to ( B ). State the type of relation…

A: "Since you have asked multiple questions, we will answer first questions for you. If you have any…

Q: 1. The demand for luxury goods is more elastic than the demand for essential goods   2. If the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Find the price elasticity of demand for a certain good for which the quantity demanded is 50 when…

A: The price elasticity of demand measures the proportionate change in the quantity demanded of a good…

Q: - If demand is unitary elastic, a 25% increase in price will result in

A: Price elasticity of demand indicates the proportional change in demand due to a proportional change…

Q: Suppose the price elasticity of demand for a good called "widgets" is 0.4. Is this good more elastic…

A: The degree to which a change in an economic element is met with a corresponding shift in demand is…

Q: income elasticity of demand for Blu-Ray players is

A: Income elasticity of demand is the responsiveness of the quantity demanded for a good to a change…

Q: 8. The elasticity of demand of durable goods is

A: To find : Elasticity of demand of durable goods

Q: Determinants of the price elasticity of demand Consider some determinants of the price elasticity of…

A: Part A: Suppose if a good has close substitute goods, then if the price of that good rises, people…

Q: 28) The price elasticity of demand for a good is relatively elastic if: A) there are a large number…

A: When businesses seek to modify their demand elasticity, they use the price elasticity of demand. If…

Q: 5.Your price elasticity of demand for bananas is 4. If the price of bananas rises by 5 percent, what…

A: Given Information: Price elasticity of demand for bananas = 4 The rise in Price of bananas =5%

Q: If consumers respond to a 10% price reduction by buying twice as much of a particular good, we would…

A: Demand curve is a downward sloping curve showing inverse relationship between price of a good and…

Q: The Pear company sells a smart phone for $350. Its sales have averaged 9,000 units per month over…

A: Cross elasticity of demand:  It is an economic term that measures the change or response of the…

Q: 1. If a 7 percent rise in the price of Pepsi increases the quantity of Coca Cola demanded by 4…

A: Cross Price Elasticity refers that when change in price of one product will affect the quantity of…

Q: Find the price elasticity of demand if the market price is of a barrel of oil changes from $10 to…

A: Answer: Given, Price of a barrel of oil Quantity $10 (initial price) 1000 barrels $20 (new…

Q: 7. Suppose that a market has the demand function Qd = 20 - 0.5P. Using the midpoint method, what is…

A: Mid-point formula is: ed=Q2-Q1Q2+Q12÷P2-P1P2+P12 Let P1 be $30, P2 be $40 and hence Q1 be 5 and Q2…

Q: 2: An economist estimated the cross-price elasticity for peanut butter and jelly to be -1.5. Based…

A: Cross price elasticity of demand measures the responsiveness in quantity demanded of a commodity to…

Q: 33. You are told that the income elasticity for CDs is+ 1. This means that : A 10 percent increase…

A: The income elasticity of CDs is given to be +1.5 (corrected in the question above)

Q: ? 20 Supply Demand 16 Supply Demand 10 QUANTITY (Millions of bushels) One of the growers is excited…

A: Midpoint price elasticity of demand=% change in quantity demanded/% change in price % change in…

Q: An economist estimated the cross-price elasticity for peanut butter and jelly to be 1.5 . Based on…

A: Given Cross price elasticity for peanut butter and jelly is 1.5

Q: 1.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread falls by 10%,…

A: A good's price elasticity of demand is a measure of how sensitive the quantity demanded is to its…

Q: Q2. importance of elasticity in decision makingfor consumers and producers, explain your concept by…

A: Elasticity of demand is the degree of responsiveness of quantity demanded of a commodity with…

Q: Suppose that a 20% increase in the price of gasoline causes a 5% decrease in the consumption of…

A: Price elasticity of demand measures the responsiveness of quantity demanded changes as a result of…

Q: 11)The price elasticity of demand is defined as * a)the percentage change in a good's quantity…

A: The elasticity measures how the change in one variable affect the other variable. It is an important…

Q: 35. You are told that the cross-price elasticity between goods X and Y is +2,0. This means that a.…

A: The cross price elasticity of demand is the concept that measures how the demand for a good responds…