Direction: Solve the elasticity of demand. Then determine the degree of its elasticity. Q2= 10; P2= 50 Q1= 7; P1- 100 Q2= 25; P2- 60 Q1= 75; PI-40 Q2- 50; P2= 85 QI- 30; PI- 95
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- On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the price and quantity demanded are 6 and 150 units, respectively. What is the price elasticity of demand between the 7 and 6 prices?The demand equation for cans of chicken is Qd= 60-3p Suppose the price of a can of chicken increases from $5 to $10. The price elasticity of demand is _________ (use decimals if necessary). We classify this price elasticity of demand as ____ over the $5 to $10 price change. A. Elastic B.Inelastic C.Unit elasticOver the range from $12 to $14, Qd goes from 30 to 24. Using this range of prices and quantities, you should calculate the coefficient of price elasticity of demand. In the box labeled E1, the coefficient of price elasticity of demand is: 2 6 1.36 1.44 In box E2, you would interpret the coefficient calculated in the previous question. Therefore, you would characterize this range as: Elastic Unit Elastic Inelastic None of the Above
- The price elasticity of demand for a product is unitary elastic. At a price of $30, 100 units of the product are sold. If the price is increased to $50, then one would expect sales to equal: Group of answer choices 120 80 150 100 60It was observed in a particular supermarket that after the price of good X dropped from 20 pesos to 17.50 pesos, the weekly demand for the said products increased from 150 units to 220 units. Solve for the Price Elasticity of Demand, then identify whether the consumer demand for good X is elastic, inelastic, or unit elastic.using picture attached Over the range from $20 to $18, Qd goes from 12 to 17. Using this range of prices and quantities, you should calculate the coefficient of price elasticity of demand. In the box labeled H1, the coefficient of price elasticity of demand is: 3.28 5 3.01 2.97 In box H2, you would interpret the coefficient calculated in the previous question. Therefore, you would characterize this range as: Elastic Unit Elastic Inelastic None of the Above Using the dataset above, if prices increased from $8 to $10, then Total Revenue will: Increase Decrease None of the above
- Discuss how knowledge of price elasticity of demand might be of practical use to a firm selling holiday tours in an island like Mauritius in a period of falling income (low economic situation) following the exposure of COVID-19.Recently, Verizon Wireless ran a pricing trial in order to estimate the elasticity of demand for its services. The manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. One week later, the number of customers enrolled in Verizon’s cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. The manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company’s 2016 annual revenues. One year later, the manager was perplexed because Verizon's 2016 annual revenues were 10 percent lower than those in 2015—the price increase apparently led to a reduction in the company’s revenues.Did the manager make an error? ExplainBy comparing the price elasticity in the R2 to R4 price range with the elasticity in the R8 to R10 range, you can conclude that the elasticity isa) greater in the R8 to R10 range.b) greater in the R2 to R4 range.c) the same in both price ranges.d) greater in the R8 to R10 range when the price rises, but greater in the R2 to R4 range when the price falls.
- The income elasticities of demand for movies, dental services and clothing have been estimated to be +3.4,+1 and +0.5 respectively.interpret these coefficients.what does it mean if an income-elasticity coefficient is negative?If the price elasticity of demand for is -2, the elasticity is classified as?The price elasticity of demand for tickets to local baseball games is estimated to be equal to 0.89. in order to boost ticket revenues, an economist would advise: Group of answer choices decreasing the price of game tickets because demand is elastic. increasing the price of game tickets because demand is elastic. increasing the price of game tickets because demand is inelastic. not changing the price of game tickets because demand is unit elastic.
