Q: The demand function for a product is p=30–0.3q and the average cost function is ē=0.2q+5+40/q ,…
A: Given Information: Demand function P = 30-0.3qAverage cost c¯ = 0.2q+5+40q Total revenue (TR) = P x…
Q: depends on the elasticity of supply and not on the marginal cost cannot be separated from the demand…
A: There is no supply bend for a monopolist. This varies from a competitive industry, where there is a…
Q: The producer of product Z has gathered some information regarding product Z: • in 2020 the price was…
A: Given Price of good Z in 2020 (P20) =4.95 Quantity sold in 2020 (Q20) =58,000 units Price of good…
Q: The demand curves appear to be fairly flat. The percentage change in quantity demanded results from…
A: Elasticity of demand depicts how much consumer responds with the change in the price level.
Q: A hotel wants to analyze its room pricing prior to a major promotional effort. Currently the…
A: In the question above, it is given : Standard price of the room per night = $150 Elasticity of…
Q: The cross price elasticity between gasoline and driving is Group of answer choices is positive so…
A: The cross-price elasticity of demand depicts a percentage change in the quantity demanded of a good…
Q: price is above the equilibrium, there will be excess supply of the product
A: True :- Because if the price of a good is above the equilibrium, this means that the quantity of…
Q: The price elasticity of demand increases with the length of the period considered because O A)…
A: Elasticity of demand measures the responsiveness of quantity demanded of a good, to a given change…
Q: The original price and quantity demanded for rubberbands were $1.00 and 10 respectively. Quantity…
A: We have given that Initially, at price P1 the quantity demanded for rubberbands were 10 Quantity…
Q: Which price adjustment strategy is based on how a customer's perception of a product is influenced…
A: Willingness to pay, segments, business dynamics, trade margins, competitor behaviour, and input…
Q: The price elasticity of demand for product X is reported to be 3.0. This means that a a. 3 percent…
A: Price elasticity of demand measures the responsiveness of demand to a change in the price level.…
Q: The price of petrol increases by 20% and remains at the new higher level. Which of the following…
A: Here, it is given that the price change by 20% will lead to provide a new higher level, which…
Q: The price elasticity of demand for a textbook sold in the United States is estimated to be -2,…
A: ANS PED is a measure that gives us an idea about how the quantity (Q) supplied of a commodity change…
Q: 10 20 30 have been hired as an economic consultant by TELECOM and given the following demand…
A: Elasticity of demand measures the responsiveness of demand to change in the price level of…
Q: The demand function for FreshFood Exclusive Brand's product is D = 80 - 2p , where D is the number…
A:
Q: A good is said to elastic when Select one: a. The quantity demanded is less responsive to a 1-unit…
A: The price elasticity of demand refers to the responsiveness of the quantity demanded of a good to a…
Q: The price elasticity of demand is a measure of Select one: a. the shift in the demand curve when…
A: The law of demand establishes the negative relationship between the price of a good and its quantity…
Q: State the processes performed when demand is predicted to be greater than supply.
A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…
Q: The price elasticity of demand increases with the length of the period considered because consumers…
A: Price elasticity of demand is the responsiveness of quantity demanded to changes in price. It shows…
Q: Product A cost $8 and demand for product B is 12 units then product A is reduced in price to $5 and…
A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…
Q: A price increase from $52 to $58 results in an increase in quantity supplied from 210 units to 250…
A: The reactivity of a good or service's supply to a change in its market price is measured by its…
Q: The data below represent a demand schedule. Product Price Quantity Demanded $50…
A: The elasticity of demand is the degree of response from the consumer in the demand towards the…
Q: When a certain brand of dog food sells for $20 per bag, 10,000 units are sold; when the price…
A: Price elasticity of demand measures the responsiveness of quantity demanded with respect to change…
Q: . When a supply curve is relatively steep, a. sellers are not very responsive to changes in price.…
A: 22. When the supply curve is relatively steep then the percentage change in price is greater than…
Q: Elasticity of supply tends to be greater when * inputs are specialized.time period allowed for…
A: The elasticity of supply measures the quantitative change in supply following change in the price…
Q: Fill in the blanks: When demand is price-elastic, an increase in price causes total revenue to When…
A: Demand: The relation between price and demand is inverse. If the price increases the demand falls.…
Q: The demand for a product is inelastic with respect to price if: consumers are largely…
A: Demand is the willingness of consumers for consuming goods and services at different price levels.…
Q: If the price elasticity of demand, ed, is equal to 2, then a 20 percent increase in quantity…
A: Price elasticity of demand measures the degree of responsiveness in quantity demanded of a commodity…
Q: After a destructive hurricane in Southeast Texas, gasoline prices around the country increased…
A: Basics:- When price of a product is increased drastically but demand for the product does not…
Q: The demand is more price-elastic: A. If the product is a large part of the consumer's budget. B.…
A: The elastic demand refers to that the small change in the price results in large change in the…
Q: Price elasticity of supply (PES): Range of values Determinants Time Availability of producer…
A: When talking about price elasticity of demand, there are various factors that affect the…
Q: Your company makes a product, Widgex, that has no direct substitutes, currently popular, and very…
A: The price of the products can be set according to the level of price elasticity of demand, that is…
Q: You have to analyze the economics of the situation and explain it to potential investors in Napa…
A: The demand (dd) for a product shows the quantity that the consumers are willing to purchase at the…
Q: Find total revenue when price Is $45 per unit and the total quantity sold is 7
A: We are given that:- Price per unit = $45 Total quantity = 7 units We need to calculate total revenue…
Q: In dynamic pricing environment where prices change regularly the decision to open or close different…
A: Dynamic pricing:- Other names for dynamic pricing include price increase and time-based costing. By…
Q: Q49 An upward-sloping straight-line supply curve through the origin has an elasticity of... a.…
A: An upward sloping supply curve can originate from three different position-origin, x-axis and…
Q: A reduction in gasoline prices caused the demand for gasoline to increase. The lower gas prices also…
A: Movement along the demand curve happens when the price of the product changes. When there is a…
Q: A good tends to have a small price elasticity ofdemand ifa. the good is a necessity.b. there are…
A: Demand is the willingness and ability for consuming and buying goods and services at given prices.…
Q: A ________ is a list of the quantities supplied at each different price when all the other…
A: In markets with more than one seller, sellers have to decide the quantity they will supply at…
Q: which Statement is TRUE a) If value of cross price elasticity is positive then it means there are…
A: In economics, the elasticity concept is widely used to analyze the market outcome, and the…
Q: Given Demand changed from D1 to D2, which of the following statements are TRUE? This…
A: Demand curve: - demand curve is the graphical way of showing the relationship between the quantity…
Q: Advertising could lead to lower prices
A: Advertising is a form of communication that is used to promote a product for enhanced sales.
Q: The supply curve will be more price elastic if the good has few substitutes the time the producer…
A: The elasticity of supply of a good depends upon the price of that good. If the price of a good…
Q: If the price elasticity of supply is zero, the supply curve isa. upward sloping.b. horizontal.c.…
A: Answer - Need to find - If the price elasticity of supply is zero, the supply curve is Evaluating…
Q: consumers' sensitivity to price changes makes demand elastic, then a price decrease leads to: an…
A: Price and total revenue have a negative relationship when demand is elastic Hence, price decrease…
Q: Demand is said to be _____________ when the quantity demanded is not very responsive to changes in…
A: Elasticity of demand measures the responsiveness of the demand due to the change in the price of the…
Q: Leopard golf clubs usually sell for $1300. At this price, the retailer can sell on average 20 sets…
A: Revenue optimization is a mixture of demand, pricing, and marketing strategies utilized to maximize…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The price elasticity of demand for air travel differs radically from first-class (1.3) to unrestricted coach (1.4) to restricted discount coach (1.9). What do these elasticities mean for optimal prices (fares) on a cross-country trip with incremental variable costs (marginal costs) equal to $120?Along a segment of the demand curve where the price elasticity of demand is less than 1, a decrease in price a. is impossible. b. will increase total revenue. c. will decrease total revenue. d. decreases quantity demanded.Elasticity of supply tends to be greater when * inputs are specialized.time period allowed for adjustment is fairly long.degree of advertising is great.demand for the product is inelastic.
- When the price of a good is $5, the quantity demanded is 100 units per month; when the price is $7, the quantity demanded is 80 units per month. Using the midpoint method, the price elasticity of demand is about 0.22. 0.67. 1.33. 1.50.The price elasticity of demand increases with the length of the period considered because consumers incomes will increase over time the demand curve will shift outward as time passes all prices will increase over time consumers will be better able to find substitutes. 2 A profit-maximizing firm in the short run will expand output until marginal cost begins to rise until total revenue equals total cost until marginal cost equals average variable cost as long as marginal revenue is greater than marginal costThe supply of a good will be more elastic, the a. more the good is considered a luxury b. broader is the definition of the market for the good. c. larger the number of close substitutes for the good. d. longer the time period being considered.
- PRICE (Dollars per pound) 10 4 2 1 0 0 10 Y X Demand 20 30 40 50 60 70 80 QUANTITY (Thousands of pounds of oranges) 90 100 According to the midpoint method, the price elasticity of demand for oranges between point X and point Y is approximately, which suggests that the demand for oranges is between points X and Y Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.The demand function for a certain product is given by p = 500 + 1000/q+1 where p is the price and q is the number of units demanded. Find the average price as demand ranges from 46 to 96 units. (Round your answer to the nearest cent.)A good tends to have a small price elasticity ofdemand ifa. the good is a necessity.b. there are many close substitutes.c. the market is narrowly defined.d. the long-run response is being measured
- . If price is above the equilibrium, there will be excess supply of the product. Select one: a.False b.TrueThe price elasticity of demand for a product tends to be greater the Select one: A. fewer close substitutes for it there are. B. more close substitutes for it there are. C. shorter the time span being considered. D. more necessary the product becomes.A price increase from $20 to $30 results in an increase in quantity supplied from 80 units to 120 units. The price elasticity of supply (based on the midpoint formula) in this price range is: