Q: List the factors that affect price elasticity of demand and describe some applications of price…
A: Elasticity will change when the % change in DD due to a certain % change in price will change. For…
Q: At equilibrium the price elasticity of demand is and the price elasticity of supply is
A: FORMULAS: Price elasticity of demand = -(Q2 - Q1 / P2 - P1) * (P1/Q1) Price elasticity of supply =…
Q: Define Cross-price elasticity of demand ?
A: Elasticity refers to the responsiveness of one variable to changes in another variable; given that…
Q: 750 Price (dollars) Quantity Demand Q
A: Elasticity is an economic proportion of how delicate an economic factor is to another, for instance,…
Q: An economist doing an analysis on the market for original paintings finds that a 7% increase in…
A: Price elasticity of supply:Price elasticity of supply can be calculated as follows:
Q: why are price elasticity demand equal percentage change in price
A: Price elasticity of demand means the extent to which the quantity demanded for a product changes due…
Q: Explain the importance of demand curves and the price elasticity of demand.
A: Quantity and quality of enterprise are important for economic development. Quantity of…
Q: Using a demand curve, calculate the price elasticities of demand between 2 different points: i. From…
A: Answer i) Price Elasticity From Point A to point B we use Mid Point Formula Q1 = 100, Q2 = 80 Q1…
Q: Calculate the elasticity of demand between these two price-quantity combinations by using the…
A: The Price elasticity of demand states the effect of change of price on the quantity demanded. It…
Q: Define elasticity of demand?
A: Answer: The elasticity of demand; elasticity of demand refers to the degree of responsiveness of…
Q: Explain at least six determinants of price elasticity of demand?
A: Price elasticity of demand (Ed) is the percentage change in quantity demanded divided by the…
Q: suppose that in a week the price of Greek yogurt increases from $1.25/lb to $1.75/lb.At the same…
A: Price elasticity of supply (PES) is an economic measure of the responsiveness (senstivity) of…
Q: What is the definition of price elasticity of demand?
A: What Is Price Elasticity of Demand? Price elasticity of demand is an estimation of the adjustment…
Q: Compute a slope and elasticity of the supply curve, which goes through coordinate points (1,0) and…
A: Answer: Introduction: Slope: it refers to the ratio of the change in the variable on the y-axis to…
Q: What is the corresponding price elasticity of demand?
A: INVERSE ELASTICITY RULE - This rule says that the profit maximizing price and marginal cost are…
Q: Why does price elasticty of demand is negligible? Explain.
A: Answer: Price elasticity measures the changes in the quantity demanded due to the changes that…
Q: The demand for tickets to an Ethiopian Camparada film is given by D(p)= 200,000- 10,000p, where p is…
A: Given : D(p)=200,000-10,000 p d[(D(p)]/dp = -10,000 At price 12 Birr , demand units will be D(p)=…
Q: Explain price elasticity
A: Price elasticity Measure of reactiveness of marketplace to the change in price of a given good.
Q: What is the difference between the cross price elasticity of demand and the own price elasticity of…
A: Own price elasticity of demand refers to the ratio of percentage change in quantity demanded and…
Q: Investigating the demand for textile in a country X, a researcher observed that the demand for…
A: Increase in demand=1.5% Decrease in price=1% 2. Increase in per capital GDP-1% Increase in…
Q: What are the various factors affecting price elasticity of demand
A: Price elasticity of demand is the measure of responsiveness of quantity demanded due to the change…
Q: Describe the concept of price elasticity?
A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…
Q: Read each statement below and indicate if the price elasticity of demand for the product is most…
A: Price elasticity of demand differ according to the types of good.
Q: List the four determinants of the price elasticity of demand.
A: Price elasticity is the ratio of percentage change in quantity demanded to the percentage change in…
Q: What is the difference between elastic demand and inelastic demand? Please provide and explain one…
A: Demand means the ability and desire of consumers to purchase goods and services.
Q: Explain with your own words the determinants of price elasticity of demand.
A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…
Q: How is the price elasticity of supply calculated? Explain what it measures.
A: Price elasticity of supply is the measure of responsiveness of producers and resource suppliers to…
Q: According to the U.S. Department of Energy, the average price of gasoline in the U.S. fell by 14% in…
A: Cross price elasticity of demand shows the responds of quantity demanded for a product to change in…
Q: Explain any four factors affecting price elasticity demand
A: Price elasticity of demand (PED) shows the connection between price and amount demanded and gives an…
Q: Intuitively explain what a positive income elasticity of demand means.
A: Income elasticity of demand refers to the responsiveness of the consumer’s demand to the change in…
Q: The price of peanut butter increases from $2.50 to $3.00 per jar, and the quantity of jelly demanded…
A: Step 1 Price elasticity (mid-point formula) = [( θ2-θ1)/(( θ1 +θ2)/2)]/[(p2 –p1 )/((p1 +p2)/2)]
Q: Explain three determinants of price elasticity of demand.
A: Elasticity is a measure of a variable's response to a change in another variable; in most cases,…
Q: What is the formula for calculating the price elasticity of demand?
A: Demand is the willingness of consumers for consuming goods and services at given prices. Price…
Q: Based on the schedule given calculate the price elasticity of demand (using the midpoint method)…
A: When average income is $20,000 Quantity demanded is 2400 units at a price of $4.50 Quantity demanded…
Q: Question attached
A: Demand is said to less elastic when the percentage change in quantity demanded is less than the…
Q: What are degrees of price elasticity of demand?
A: Answer to the question is as follows :
Q: What are the three determinants of the price elasticity of supply?
A: Supply is the amount of output that producers or sellers are willing to sell in the market at the…
Q: Calculate elasticity of supply if fall in supply is 11% and the fall in price is 8%
A: The information given is:- % fall in quantity supplied = 11% = -0.11 % fall in price = 8% = -0.08 We…
Q: Would the cross-price elasticity of demand for online movie rentals and in-store movie rentals be…
A: Cross price elasticity of demand is the measure of the degree of responsiveness in quantity demanded…
Q: Define price elasticity of demand
A: The law of demand states that other things being constant, there is a negative relationship between…
Q: What is the price elasticity of demand at any point on a perfectly inelastic demand curve?
A: The price elasticity of demand measures the percentage change in quantity demanded due to percentage…
Q: Calculate the income elasticity of demand (using the midpoint method) when average income increases…
A: Income elasticity = (Q2-Q1)(Y1+Y2)/(Y2-Y1)(Q1+Q2) Y1= 20000, Q1= 2400 Y2= 30000, Q2= 3600
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- If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?If a decrease in the price of movie tickets increases the total revenue of movie theaters, this is evidence that demand is a. price elastic. b. price inelastic. c. unit elastic with respect to price. d. perfectly inelastic.
- In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is 1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total revenues?Describe the general appearance of a demand or a supply tune with zero elasticity.(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?
- The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 95e−3p2 + p, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥400. E = _____ Interpret your answer. The demand is going down/up by ____ % per 1% increase in price at that price level. Thus, a large price decrease/increase is advised. (b) At what price will revenue be a maximum? ____ hundred yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) ______ paint-by-number sets per monthDetermine the point elasticity η of the demand equation 3p^2q = 5000 + 2000p^2, when p = 50. ?
- 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…The short-run elasticity of demand for chicken breasts measured by the National Chicken Council to be -0.75 a. What is the expected unit sales decrease from a 10 percent price increase? b. If the contribution margin for the value chain is 30 percent, what is the allowable volume loss for a 10 percent price increase?
