Change comunues touay, anu IT IS expecitu w CoiL that big discount stores are driving the small, family-owned stores out of business and ruining the character of neighborhoods. What they often don't understand is that shoppers voted for these new types of stores long ago, and they are not about to change their votes. 1. From the time that discount stores opened, consumers "voted" for lower prices above personal service. A) True B) False 2. Above all else, consumers want to buy products from people they trust. A) True B) False

Change comunues touay, anu IT IS expecitu w CoiL that big discount stores are driving the small, family-owned stores out of business and ruining the character of neighborhoods. What they often don't understand is that shoppers voted for these new types of stores long ago, and they are not about to change their votes. 1. From the time that discount stores opened, consumers "voted" for lower prices above personal service. A) True B) False 2. Above all else, consumers want to buy products from people they trust. A) True B) False

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elasticity And Its Application

Section: Chapter Questions

Problem 4CQQ

See similar textbooks

Similar questions

Hi, could you help my resolve thi homework? Q1) Bookshelf.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Bookshelf.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A (sales per week) Group B (sales per week) Volume of sales before the 20% discount 3.1 million 3.0 million Volume of sales after the 20% discount 3.3 million 3.4 million Calculate the price elasticities of demand for group A and group B. Explain how the discount will affect total revenue from each group. Suppose Bookshelf.com knows which group each customer belongs to when he logs on and can choose whether or not to offer the 10% discount. If Bookshelf.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group,…
hi how about the answer for part d and e? d) Lump sum tax (LS): Instead of a tax per unit, the government imposes a lump tax of$400 on Rugby AU. Find the new optimal price ? % &" and quantity ?%&" that Rugby AUchooses and compute its profit ?%&" in this case. e) Suppose that the government is looking to tax Rugby AU to raise revenue for buildingnew sport facilities for kids and hires you to advise which one of the taxes above – a tax per unit or a lump sum – to implement. Which one of the two taxes would yourecommend? Justify and explain why.
4. Explain each key ingredients. (ii) There should be willingness to buy the product.
4 Some online retailers include free shipping while others charge for shipping. In July 2006, bajangles.com offered a Sony 60-inch rear projection TV for $2,968.99 with free shipping, while MB superstore offered the same TV for $2,692.95 with shipping charge of $299.50 to Alaska. (a) Using relevant demand and supply curves, explain whether it matters for consumers if the retailer offers free shipping or charges for shipping. (b) If consumers view bajangles.com and MB superstore as equivalent (in terms of quality of service), how should their prices for the same TV compare? Are the prices consistent with your answer in (a)? (c) If consumers are biased in decision-making by anchoring, how would that affect your answer in (a)?
Only typed answer and don't use chat gpt Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 5, the price must be A. $3. B. $6. C. $9. D. $12.
Qd = β0 +β1Psh +β2M+β3Pcg+β4Ax+ β5C Where, Qd = Quantity demand for a deluxe room in sh Psh = Price of a deluxe room in sh (US$/room) = US$. 200.00 M = Visitors per capita income (US$/Day) = US$ 120 Pcg = Price of a deluxe room in CG (US$/room) = US$. 150.00 Ax = Average advertising expenditure in sh (US$/room) US$. 18.00 C = Customer Satisfaction Index = 8.56 DV: Q R- Square: 0.86 T table value 1.671 No of obse: 62 F- Ratio: 154.15 Var Para Esti SE β0 127.8 49.6 β1 -1.3.0 0.42 β2 2.75 1.01 β3 2.55 1.21 β4 1.41 0.48 β5 1.85 0.23 a) Are estimated parameters comparable with economic theory? why ,What are the significant parameters that could be impact on the demand for a deluxe room b) Construct the Total Revenue (TR) function of Sh hotel and determine the TR maximize demand c) Calculate and interpret, cross-price elasticity, income elasticity, and advertising elasticity of demand for a deluxe room and Calculate Adjusted R2 and interpret it.
AFTER READING THE PARAGRAPH ANSWER THE QUESTION : On Wednesday April 8, Starbucks announced that itexpects its fiscal second-quarter earnings to be cutnearly in half as the coronavirus pandemic causessales to plunge in its two largest markets. What wouldbe the right pricing strategy to maximize revenues forStarbucks in the current circumstances? In January 2020, Starbucks raised their beverage prices by an average of1% across the U.S, a move that represented the company’s firstsignificant price increase in 18 months. I failed to notice because the pricechange didn’t affect grande or venti (medium and large) brewed coffeesand I don’t mess with smaller sizes, but anyone who purchases tall size(small) brews saw as much as a 10 cent increase. The company’s thirdquarter revenue rose 25% to $417.8 million from $333.1 million a yearearlier, and green coffee prices have plummeted, so what gives?Starbucks claims the price increase is due to rising labor and non-coffeecommodity costs, but with…
Time remaining:00 :09 :39EconomicsUse the following to answer questions (29) - (31):In the town of “One Horse” there is one movie theater. Two groups of consumers, adults (A) andchildren (C), attend this theater. Suppose the demand for movies by adults is given by:QA = 50 - 0.50PA, where PAis price ofan adultmovie ticket(in cents)and QAis the numberofmovie tickets sold to adults atthe theater. Suppose the demand for movies by children is given by:QC = 20 - 0.50PC,where PCispriceofa children’s movie ticket(in cents)and QCis the numberofmovie tickets sold tochildren atthe theater. Also, imagine totalcostis fixed at$450, thus makingmarginalcostofprovidingonemore movie ticket to either an adult or a child constant at zero.[29]Ifthe movie theateris able to price discriminate amongits two groups ofconsumers, then itshouldcharge a higher price to group A.A.TrueB.False[30]Ifthemovie theateris able to price discriminate amongits two groups ofconsumers, then itsmaximum profit is closest in value…
. It is a hot day, and Bert is thirsty. Here is the value heplaces on each bottle of water:Value of first bottle $7Value of second bottle $5Value of third bottle $3Value of fourth bottle $1a. From this information, derive Bert’s demandschedule. Graph his demand curve for bottledwater.b. If the price of a bottle of water is $4, how manybottles does Bert buy? How much consumersurplus does Bert get from his purchases? ShowBert’s consumer surplus in your graph.c. If the price falls to $2, how does quantitydemanded change? How does Bert’s consumersurplus change? Show these changes in yourgraph.
When the price of movie tickets increases, : the demand for movies goes down. Optional breach Choose one: O. True O. False
a. A young connoisseur has $600 to spend to build a smallwine cellar. She enjoys two vintages in particular: a 2001French Bordeaux (wF) at $40 per bottle and a less expensive 2005 California varietal wine (wC) priced at $8. Ifher utility is U (wF, wC))=wF2/3 w C1/3 ,then how much of each wine should she purchase?b. When she arrived at the wine store, this young oenologistdiscovered that the price of the French Bordeaux hadfallen to $20 a bottle because of a decrease in the valueof the euro. If the price of the California wine remainsstable at $8 per bottle, how much of each wine shouldour friend purchase to maximize utility under thesealtered conditions?c. Explain why this wine fancier is better off in part (b)than in part (a). How would you put a monetary value onthis utility increase?
A5Some online retailers include free shipping while others charge for shipping. In July 2006, bajangles.com offered a Sony 60-inch rear projection TV for $2,968.99 with free shipping, while MB superstore offered the same TV for $2,692.95 with shipping charge of $299.50 to Alaska. (a) Using relevant demand and supply curves, explain whether it matters for consumers if the retailer offers free shipping or charges for shippin (b) If consumers view bajangles.com and MB superstore as equivalent (in terms of quality of service), how should their prices for the same TV compare? Are the prices consistent with your answer in (a (c) If consumers are biased in decision-making by anchoring, how would that affect your answer in (a)?)?g.