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- If the demand curve for slices of pizza is given as Q = 300 - 16p, then the pointelasticity of demand when price is $1.50 is (Hint dQ/dp = -16)If cross-elasticity of one commodity for another turns out to be zero, it means they areClose substitutesNone of theseGood complementsCompletely unrelatedPLEASE Show ALL Workings and Graphs VERY CLEARLY! Using indifference curve analysis, derive the Hicksian and the Slutsky demand curves for an inferior good and a Giffen good, by clearly explaining what the price elasticity of demand (PED), income elasticity of demand (IED) and cross elasticity of demand (CED) measure in general.
- Brit-Brick is a company that produces bricks and cement in the UK. Their largest consumer is ConstrUK, a UK construction company. The manager of Brit-Brick has asked the research department to find out how sensitive ConstrUK’s demand for bricks is. The research department has estimated that ConstrUK’s preferences over bricks (x) and cement (y) can be described by the utility function U(x,y) = x2/10y1-2/10 The price for one bag of cement is equal to £1. It is estimated that ConstrUK’s budget is £10,000. Find the price-consumption curve for bricks and the corresponding demand curve.Analyze how a store owner can continue to increase prices on inelastic goodsKk177. Suppose the market demand function is given as;Qd = 5I + 10P_1 − 0.4P^2where I is income in $1000 and P1 is price of a related good.(a) What is the relation between these two goods?(b) Calculate the income, cross price, and own price elasticities of demand if I = $50,000, P1 = $10 and P = $20.(c) At what price is demand unit elastic if I = $50,000 and P1 = $10?
- Upon graduating from UT this May, you take on a management position working at UtMax theater. You will consider the utility of seeing performance over 1 month, and suppose that at a regular price of $$$ per ticket (my assigned ticket price is 145), customers will see no performance, however with the price reduced by $5, customers will see one performance per month and when reduced by $10, customers will see two performances. As long as the number performances, x, is small, your demand function for performance can be modeled by p=D(x). Write down your demand function.Brit-Brick is a company that produces bricks and cement in the UK. Their largest consumer is ConstrUK, a UK construction company. The manager of Brit-Brick has asked the research department to find out how sensitive ConstrUK’s demand for bricks is. The research department has estimated that ConstrUK’s preferences over bricks (x) and cement (y) can be described by the utility function U(x,y) = x4/5y1/5 where x and y are measured in bags. The price for one bag of cement is equal to £1. It is estimated that ConstrUK’s budget is £10,000. Find the price-consumption curve for bricks and the corresponding demand curve. Note: The writing is clear and abbreviations are not allowed.Brit-Brick is a company that produces bricks and cement in the UK. Their largest consumer is ConstrUK, a UK construction company. The manager of Brit-Brick has asked the research department to find out how sensitive ConstrUK’s demand for bricks is. The research department has estimated that ConstrUK’s preferences over bricks (x) and cement (y) can be described by the utility function U(x,y)=x^(7/10)y^(1-7/10) The price for one bag of cement is equal to £1. It is estimated that ConstrUK’s budget is £10,000. Find the price-consumption curve for bricks and the corresponding demand curve.
- Consider the demand function for good1, Q1 = 2795 - 4P1 + 0.5P2 - 0.25P3 + 0.08Y Where, price of good1 (P1) is 52, price of good2 (P2) is 186, price of good3 (P3) is 176, and income ( Y ) is 22368; (a) Find the price elasticity of demand (PED). (b) Find the income elasticity of demand (YED). (c) Find the cross price elasticity of demand (XED) between good1 and good3. (d) estimate the percentage change in the demand for good1 resulting from a 12% decrease in the price of good2Brit-Brick is a company that produces bricks and cement in the UK. Their largest consumer is ConstrUK, a UK construction company. The manager of Brit-Brick has asked the research department to find out how sensitive ConstrUK’s demand for bricks is. The research department has estimated that ConstrUK’s preferences over bricks (x) and cement (y) can be described by the utility function U(x,y)=xb/10y1-b/10 where b is 2, and where x and y are measured in bags. Example: if b=4, then . U(x,y)=x4/10y1-4/10=x2/5y3/5 The price for one bag of cement is equal to £1. It is estimated that ConstrUK’s budget is £10,000. Find the price-consumption curve for bricks and the corresponding demand curve.A consumer’s preferences over two goods x and y are given bythe utility function U(x, y) = xαyβ with α, β > 0. The prices of the goods are px = 2 and py = 4.The consumer has an income of I > 0.(a) For what values of α and β are these utility functions strictly monotone?(b) For what values of α and β will the consumer demand (i.e., Walrasian demand) be more x than y?(c) For what values of α and β are these goods gross substitutes? For what values of α and β are these goods gross complements? Provide a justification for your answer.