If the cross-price elasticity between the price of good A and the demand for good B is zero, this implies: O The seller of good A can raise its price and there will be no reduction in the quantity of good B sold. O The goods are complementary with each other. O The own price elasticity for both goods is positive. O Producers of both goods are in the same market. O The goods are substitutes.
Q: The equilibrium quantity of labor increases and the equilibrium wage decreases when: A) labor supply...
A: Labor supply is the number of people available for work.
Q: If the output level is such that the Y=AE line (45-degree line) is above the aggregate expenditure l...
A:
Q: Which of the following would be most likely to increase consumption spending? Select an answer and s...
A:
Q: SMES ARE A MAJOR SOURCE OF TECHNOLOGICAL INNOVATION AND NEW PRODUCTS. a. True. O b. False.
A: When some quantities of product is manufactured, cost takes place and process of business follow up...
Q: n the Heckscher-Ohlin-Vanek model with trade a country that is labour abundant will export the...
A: Heckscher-Ohlin-Vanek model states that trade results on account of the different relative prices of...
Q: In international relations Forgiving strategies are Group of answer choices (pick one) a.bad for coo...
A: International relations is the study of the interaction of states with each other and with internati...
Q: For each of the following insurance plan designs, use a supply and demand graph to show how it would...
A: Insurance Insurance is a contract in which a person or organization gets financial protection or com...
Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice,O, $1 each. Her income is ...
A:
Q: Suppose a monopolist faces two groups of consumers. Group 1 has a demand given by P1=50-2Q1 and MR1=...
A: Being a single seller in the market, the monopoly can charge price greater than marginal cost to max...
Q: In the Heckscher-Ohlin-Vanek model, labour productivities in the production of a good in the differe...
A: Heckscher-Ohlin-Vanek model The Heckscher-Ohlin model was created to forecast international trade pa...
Q: Name at least five products of the Philippine that is commonly exported for international use and ho...
A: Philippines exports a variety of goods These include Computers Electrical Equipment Fruits, nuts and...
Q: 4. A profit-maximizing firm has cost function C(Q) = 500 + 10Q + 200?. 4a.What is the firm's margina...
A: In the mentioned question we have to calculate the marginal cost and the long-run supply function.
Q: for a firm's production process. The initial cost $200,000 with annual costs of $50,000 and saving o...
A: Given that, Annual cost = $50,000 Savings = $90,000 and increment by $3,000 (G) after year-1 Therefo...
Q: Why is scientific literacy is important? Answer can be related to decision-making, economic producti...
A: There is a type of government which is known as communist type of government. In this type of govern...
Q: q bos ame imse nodudidnoo rip) aigam-Jeerigiri erlt to eelsa rlau9 aiaylens nigneM When a business h...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Consider the market for cola soft drinks where Pepsi and Coke are dominating this market with well a...
A: Monopoly is a market where by a single supplier dominates the whole market and duopoly is a market s...
Q: The Heckscher-Ohlin model predicts that trade in goods leads to convergence in prices of factors bet...
A: Answer: The Heckscher-Ohlin theorem says that the trade between countries occurs due to the differen...
Q: Consider two developed and developing countries, the population growth rate of developed countries i...
A: At a steady-state, capital per worker is constant, that is investment is a breakeven investment.
Q: All of the following have been used in the past as commodity money EXCEPT: O a. Salt. O b. Gold. O c...
A: SInce ages, different materials have been used as a medium of transaction. With the passing time, pe...
Q: Find the present value of $750 to be paid four years from now when the prevailing interest rate is 1...
A: Amount = $750 Interest rate = 10% ( Compounder annually ) Tenure = 4 years in
Q: The price p (in dollars) and the quantity q sold of a certain product obey the demand equation q − ...
A: Please find the answer below.
Q: Assumptions MLR.1, MLR.3, MLR.4 and MLR.5 hold but Assumption MLR.2 does not. (Word limit: 100 words...
A: b) The assumption MLR2 states that the sampling method chosen does not impact the characteristics of...
Q: Given the Aggregate Expenditure schedule for Country A below. Calculate national income and net capi...
A: Answer: Y=C+I+G+X-MY=34,141+17,926+9,042+36,872-26,812Y=71,169 Now, Net capital outflow = X - M or ...
Q: Suppose all firms in a given industry have the same supply curve given by S,(p)p/4. Plot and label t...
A: The supply curve of each firm is given to be: Si(p) =p/4 There are 4 firms in the industry, so the i...
Q: The table below gives the growth statistics for the USA in the last 15 years. Growth Rate (% per yea...
A: Given that Output per worker =1.23% Capital stock per worker =0.83% Expected growth of real wages =...
Q: OC(12%)Variable (200)( $272)(P/A1, 6%, 12%, 5) X (A/P, 12%, 5) %3D $60,529. Can you please explain h...
A: From the given calculation the information extracted is that 200 and 272 is the annuity amount that ...
Q: (i). Write an equation for the manufacturer’s profit as a function of the number of tablets produced...
A: The correct answer is given in the second step .
Q: Has the researcher tested for representativeness: comparing the sex distribution ofthe population an...
A: A representative sample is a subset of a population that attempts to correctly reflect the larger gr...
Q: Suppose that the price of apples increases by 10%. Within a short amount of time, apple producers ar...
A: Elasticity of supply helps the producers in determining the production levels. It also explains how ...
Q: Economies of scale are an example of barriers to entry because Select one: Oa. Only big firms will b...
A: An economy of scale occurs when a corporation may reduce expenses by expanding the number of things ...
Q: Which of the following data would be analyzed to determine whether any shift in the MPI has occurred...
A: The MPI is a metric that evaluates initiated utilization, the idea that the expansion in private con...
Q: All of the following have been used in the past as commodity money EXCEPT: O a. Salt. O b. Gold. Oc....
A: Correct option :- d. Water. Commodity money :- Whose value comes from a commodity of which it is mad...
Q: A firm operates with the production function Q=2L+4K. The firm has target production of 420 units of...
A: Answer: Given, Q=2L+4K Target production = 420 units K = 80 units (short-run) w (wage) = $100 r (ren...
Q: Q2: Suppose that a firm's production function of output Q is a function of only two inputs, L and K ...
A: As given Q = L + 4K , W = 5 and r = 25 also Given Q =100
Q: 4. Notice that the production function of this economy exhibited not diminishing returns, but rather...
A: A change in wealth due to investment is known as capital accumulation. When the wealth increases due...
Q: Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand giv...
A: Q=378-2P2P=378-QP=378-Q2P=189-Q2Now,TR=P×QTR=189-Q2QTR=189-Q22Thus,MR=∂TR∂QMR=189-Q
Q: Directions: Solve the following problems. Interpret the results. 1. Christine sells banana banana tu...
A: Given At price Php 4.00, total sell is 50 pcs and at price Php 6.00, sell is 40 pieces. Formula fo...
Q: Consider the Solow model with no technological progress Assume that depreciation equals 0.20, popula...
A: Given that; depreciation= 0.20 Population growth is 0.10 Capital output ratio K/Y=0.7 Savings rate=3...
Q: Suppose an increase in Demand cause surfboard prices to go up from $350 to $450 each. As a result pr...
A: Mid point method: es = [(Q2-Q1) / (Q2+Q1) /2] / [(P2-P1) / (P2+P1)/2] where, es is Price elasticity ...
Q: There are 300 farms in the perfectly competitive local dairy market. Of the 300 dairy farms, 298 hav...
A: Perfect competition refers to a theoretical market structure.Monopolies do not exist in a perfect co...
Q: Traditional economy is the social and institutional process through which certain groups of economic...
A: The given statement is true.
Q: The image attached, is a screen shot of the question. The question is: If the marginal propensity t...
A: Please find the answer below.
Q: Find the present worth of a perpetuity of P 13,500 payable quarterly if money is worth 12% compounde...
A: The term perpetuity means a number of equal payments of money for an indefinite period of time Prese...
Q: The price of sugar (a substitute for corn syrup) decreased. At the same time, the price of corn star...
A: There are various non price determinants that shift the demand and supply for a good. Changes in the...
Q: How does covered interest arbitrage affect the exchange rates
A: By understanding the interest arbitrage and bringing in the interest arbitraging interest rate diffe...
Q: 13. In a dice game, the player rolls a single die. The payouts for a dice game are given below: roll...
A: Answer: Given, Let us first find the probabilities of all the outcomes: P1,2=26=13P3,4,5=36=12P6=16...
Q: Choose from the two machines which is more economical: Machine A 8000 Machine B First Cost 14000 Sal...
A: Present worth Machine A Year Cashflow Amount PVF 16% P.V 0 First Cost 8000 1 8000 1-10 Annu...
Q: Determine the exact simple interest of Php 25,000 for the period from December 27, 2001 to March 23,...
A: Given Value of money at December 27 2001 P = 25000 Rate of interest r= 10% simple interest. We have...
Q: The Heckscher-Ohlin model predicts that there will be no factor intensity reversals when moving from...
A: Heckscher-Ohlin model The Heckscher-Ohlin model is basically an economic theory that states nations ...
Q: You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. ...
A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be...
Step by step
Solved in 2 steps
- Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose from $95 to $105, what would be the elasticity of supply if the quantity supplied changed from a. 38 to 42? b. 78 to 82? c. 54 to 66?(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?When calculating the cross-price elasticity of demand between any two goods, O a. the answer will always be a positive number. O b. the answer will be positive if the goods are substitutes of each other, and negative if they are complementary goods. O c. we take the absolute value of the elasticity because it is redundant information. O d. the answer will be negative if the goods are substitutes and positive if they are complementary goods.
- Suppose that a person regards ham and cheese as pure complements—he or she will always use one slice of ham in combination with one slice of cheese to make a ham and cheese sandwich. Suppose also that ham and cheese are the only goods that this person buys, and that bread is free.6.1. If the price of ham is equal to the price of cheese, show that the own-price elasticity of demand for ham is –0.5 and that the cross-price elasticity ofdemand for ham with respect to the price of cheese is also –0.5.6.2. Explain why the results from (6.1) reflect only income effects, not substitution effects. What are the compensated price elasticities in this problem?6.3. Use the results from (6.2) to show how your answers to (6.1) would change if a slice of ham cost twice the price of a slice of cheese.Goods x and y are perfect substitutes. When the market price of good x is $5/unit, firm F produces 500 units of x. When the price of y rises, 100 consumers of y shift to the consumption of good x. This causes industry analysts to believe that firm f has increased quantity supplied of x by 100 units to meet the higher demand for it. To arrive at this conclusion, the industry analysts are assuming that a. Good x is the only substitute of y available to them. b. Each person will now buy more of x than they did prior to the increase in the price of y. c. Good y is an inferior good. d. The law of supply does not hold for good y. e. The new buyers of good x will, on average, consume one unit each. It’s apparently not b.Q.3. Suppose the own price elasticity of demand for good X is −5, its income elasticity is 2, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 6. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (−) sign. a. The price of good X decreases by 4 percent. percent b. The price of good Y increases by 7 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percent
- Suppose the own price elasticity of demand for good X is −4, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 4. Determine how much the consumption of this good will change if:Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (−) sign.a. The price of good X decreases by 4 percent. percentb. The price of good Y increases by 9 percent. percentc. Advertising decreases by 2 percent. percentd. Income increases by 3 percent. percentFor goods which has relatively inelastic demand the change in quantity demanded result in Select one: Oa. Equal percentage change than does price O b. Less percentage change than does price c. Higher percentage change than does price Od. Double percentage than does priceIf the price of product A increases from $80 to $100,the quantity demanded for product A will decreasefrom 1200 to 1000o What is price elasticity of demand for product A ?If the market price of burger falls from $12 to $10,the quantity demanded for burger will be up from1450 to 2000.o What is price elasticity of demand for burger withrespect toa) original price of burger ?b) new price of burger ?c) midpoint-price of burger ?
- Income elasticity of demand measures how responsive price is to changes in quantity demanded. how responsive quantity demanded is to changes in income. how responsive income is to changes in education levels. how responsive quantity demanded is to changes in price. For the next part, suppose the income elasticity of demand for butter is 0.470.47. That means butter is an inferior good. a complementary good. a normal good. a substitute good. a luxury good.Q2 The demand for good X is given by Qx d = 6,000 − 1/2 Px − Py + 9 Pz + 1/10 M Research shows that the prices of related goods are given by Py = $6,500 and Pz = $100, while the average income of individuals consuming this product is M = $80,000. and Px = $5,230? Find own price elasticity, cross price, and income elasticity. Indicate whether goods Y and Z are substitutes or complements for good X. Good x is an inferior or normal good?Let (inverse) demand be Pb = 98 - 2 Qb and (inverse) supply be Pv = 26 + 2 Qv. What is the quantity supplied at P_low?