Let's say that a grocery store observes that at $2.00 per gallon of milk, buyers purchase 800 gallons per day. The next week, the grocery store increases its price to $3.00 per gallon and buyers purchase 700 gallons per day What is the price elasticity of demand for milk? is it demand elastic or inelastic or unitary a2) A movie theatre sells 1,800 tickets when it charges a price of $11. After it lowers its price to $9, it sells 2,600 tickets. What is the price elasticity of demand for tickets for this movie theatre? Q3) If a consumers daily income rises from SR.300 to SR.350, his purchase of good X increases from
Let's say that a grocery store observes that at $2.00 per gallon of milk, buyers purchase 800 gallons per day. The next week, the grocery store increases its price to $3.00 per gallon and buyers purchase 700 gallons per day What is the price elasticity of demand for milk? is it demand elastic or inelastic or unitary a2) A movie theatre sells 1,800 tickets when it charges a price of $11. After it lowers its price to $9, it sells 2,600 tickets. What is the price elasticity of demand for tickets for this movie theatre? Q3) If a consumers daily income rises from SR.300 to SR.350, his purchase of good X increases from
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...
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Transcribed Image Text:Q1) Let's say that a grocery store observes that at $2.00 per gallon of milk, buyers
purchase 800 gallons per day. The next week, the grocery store increases its price to
$3.00 per gallon and buyers purchase 700 gallons per day
What is the price elasticity of demand for milk? Is it demand elastic or inelastic or unitary
a2) A movie theatre sells 1,800 tickets when it charges a price of $11. After it lowers its price to $9,
It sells 2,600 tickets. What is the price elasticity of demand for tickets for this movie theatre?
Q3) If a consumers daily income rises from SR.300 to SR.350, his purchase of good X increases from
25 units per day to 35 units, find income elasticity of demand for X? identify whether it's a normal
good /inferior good
Q4) Suppose the milk price decrease from s.r.12 to s..10 this leads to decrease the
quantity demanded of butter from 100 kg tp 50 kg.
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