Previously when Rafiq was earning 30000 tk per month he was consuming 2 unit got X and 2 unit good Y. But now he is consuming 6 units good X and 1 unit good Y as his present income increased to 50000 tk. A) Calculate elasticity of good X and identify the name of this product.

Previously when Rafiq was earning 30000 tk per month he was consuming 2 unit got X and 2 unit good Y. But now he is consuming 6 units good X and 1 unit good Y as his present income increased to 50000 tk. A) Calculate elasticity of good X and identify the name of this product.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 2CQQ: The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units....

See similar textbooks

Related questions

Q: Use the endpoint method to compute the price elasticity on D1. P $10 в $5 A D, D2 80 90 100

A: Endpoint method of price elasticity measures the responsiveness in demand by a change in price by…

Q: Calculate Price Elasticity of Demand for pens when the price rises from $4 to $6 a pen and quantity…

A: Price Elasticity of Demand is showing the sensitivity of changing quantity demanded to the changing…

Q: A local council raises the price of car parking from sh 6 to sh10 per day and finds that the usage…

A: The price elasticity of demand is calculated by dividing the percentage change in quantity demanded…

Q: Elasticity of demand depends on a number of factors, including whether the product in question is a…

A: The price elasticity of demand measures the percentage change in the quantity demanded of the good…

Q: The New York City Parks Department learned an important lesson about elasticity when it decided to…

A: Price increased from $100 to $200 and quantity of permits demanded decreased from 2000 to 1000.

Q: The price of season tickets to a performing arts theater decreases by 3 percent. As a result, the…

A: The price elasticity of demand measures the responsiveness of quantity demanded to a change in…

Q: When Ms. Khadija increased the price of her products, she lost a huge number of customers. She also…

A: The elasticity measures the percentage change in the value of one variable when the other variable…

Q: The price elasticity of demand for Pete's chocolate chip cookies is 1.5. Pete wants to increase his…

A: Price elasticity of demand refers to the percentage change in the demand for goods and services due…

Q: A recent study determined the following elasticities for Volkswagen Beetles: Price elasticity of…

A: Price elasticity of demand measure the change in quantity demanded of product and service in…

Q: Mr. Faisal sells Turkish Lamb Shawarma. During December 2019 Faisal sold 10,000 shawarmas at a price…

A: There are different methods that can be used to compute the price elasticity of demand such that…

Q: George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50 he…

A: Elasticity of demand = % change in quantity demanded / % change in price

Q: Recently, in Beijing, the price of Quduoduo cookies fell from $0.80 to $0.70. As a result, the…

A: The value of elasticity of demand being negative showing that as a result of decrease in price the…

Q: A recent study determined the following elasticity for Volkswagen Beetles: Price elasticity of…

A: Price elasticity of demand=(-)2 Income elasticity of demand=1.5 Price elasticity of demand tells…

Q: Given the following demand equation: Q= 100 - 5p Calculate the price that corresponds with a price…

A: price elasticity refers as a percentage change in demand due to the percentage change in price here…

Q: i owned both of the two jerry garcia autographed lilthographs in existence. I sold one on eBay for a…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: Compute the following word problems and identify what type of elasticity is each. Show your PED of…

A: Point elasticity formula for PED = [(Q1 - Q0) / Q0] / [(P1 - P0) / P0] Midpoint formula for PED =…

Q: Suppose that your demand schedule for DVDs is as follows:Price: 8, 10, 12, 14, 16Demand (income…

A: Below are the prices and demand: Price: 8, 10, 12, 14, 16 Demand when income =$10000 : 40, 32, 24,…

Q: The cross-price elasticity of demand between hot dogs and hot dog buns is (Use the midpoint formula…

A: Cross price elasticity of demand measures the responsiveness of change in the quantity demanded of…

Q: Suppose that your demand schedule for DVDs is as follows:Price: 8, 10, 12, 14, 16Demand (income…

A: Initial price (P) = $8 Final price (P1) = $10 Quantity demanded when Price is $8, Q = 50 Quantity…

Q: For the demand function q=D(p)=273−p, find the following. a) The elasticity b) The elasticity at…

A: Elasticity of demand refers to the responsiveness on part of the consumers toward the change in…

Q: Calculate the elasticity between and between points G and H shown in the figure

A: Elasticity of demand measures the responsiveness of quantity demanded to changes in the price level.

Q: The price elasticity of demand for a popular sporting event is 2. If the price of a ticket to this…

A: The relationship between the proportionate change in demand and the proportionate change in price is…

Q: George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he…

A: Given: George sells T-shirts per month = 5,000 The selling cost for T-shirts is = $8.50 The price…

Q: A recent study determined the following elasticities for Picanto: Price elasticity of demand = 3…

A: Given Price elasticity of demand = 3 Income elasticity of demand = 2.5

Q: True/False When income elasticity is greater than 1 than that good is most probably a luxury.

A: # A good which has an elasticity of demand greater than 1 is having a really high elastic demand.…

Q: Suppose that your demand schedule for dvds is as follows: price quantity demanded (income = $10,000)…

A: price quantity demand ( income $10,000) quantity demand( income $ 12,000) 8 40 50 10 32 45 12…

Q: You run a small pizza shop named Pizza Hat. Initially you sold pizzas for $15 and every week you…

A: Given; Price of pizza= $15 Quantity sold= 600 Cost of making 1 pizza= $6 After offering discount:-…

Q: Zara purchases 2500 pieces of candies regularly given her income of 5000 pesos. She preferred to buy…

A: Elasticity is a measure of the sensitivity of one variable to changes in another variable, most…

Q: Zulaikha and ker xin went to a shop to buy rice. Zulaikha wanted to buy 10 kg of rice and ker xin…

A: Price elasticity of demand refers to the responsiveness of the quantity demand due to change in the…

Q: p is in dollars and q is the number of units. Suppose that the demand for a product is given by…

A: Given: The demand for a product is given by: (p+1) q+1 = 1,800 The price for a dollar is: P = $46 To…

Q: Alice’s hair salon increased its total monthly revenue from RM10,000 to RM15,000 when it raised the…

A: Price elasticity of demand refers to the responsiveness of the quantity demanded to a change in the…

Q: Use the information below and Calculate the elasticity „Determine the type of elasticity 2. At the…

A: Given, Initial price (P) = $10/kg of olive oils Final price = $20/kg of olive oils Change in…

Q: Alex's income has increased from 3000Php. to 5000Php. Alex increased his consumption of CD from 4 to…

A: Income elasticity of demand is the ratio of percentage change in quantity demanded and percentage…

Q: 1. Compute for the price elasticity of demand using the elasticity formula. Supplement your answer…

A: Qd is the quantity demanded, which is the quantity that the consumers are willing to buy at…

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: Zulaikha and Ker Xin went to a shop to buy rice. Zulaikha wanted to buy 10kg of rice and Ker Xin…

A: Price elasticity of demand: It refers to the change in the quantity demand in relation with the…

Q: Which of the following statements about elasticity is true Select one: O a. Values that are further…

A: Elasticity measures the percentage change of one economic variable in response to a change in…

Q: A recent study determined the following elasticities for Picanto: Price elasticity of demand = 3…

A: Price elasticity of demand refers to the responsiveness of change in quantity demand due to change…

Q: Suppose that vacationers have the following demand for airline tickets from Toronto to Montreal: 10.…

A: Given : Price of the ticket rises from $200 to $250.

Q: Price (P) $50 $30 Demand 800 1,200 Quantity (Q) In the figure above, the price elasticity of demand…

A: In the given graph, when moving from point A to B, Initial quantity demanded is 1,200 Final…

Q: When the price of Good 1 changed from $7 per unit to $10 per unit, demand for Good 2 changed from…

A: Cross price elasticity of demand refers to the responsiveness in Quantity demanded of good X due…

Q: Use the endpoint method to compute the price elasticity on D1. P $10 B $5 A D, D2 80 90 100 From…

Q: According to a recent study on the price elasticity of demand for housing in various sub-markets in…

A: Dasoupoli:ed=0.9Percentage change(increase) in price=5%Thus,ed=% change in price% change in quantity…

Q: Find elasticity demand for p+0.0003x=15 at x=25,000 , what kind of elasticity is this

A: Given, Demand function, p+0.0003x = 15 or p = 15 – 0.0003x Value of x (quantity demanded) =25000…

Q: You work in the marketing department of a major telecommunications company. You discover that demand…

A: Demand for phone calls during business hours is inelastic. It means demand for phone calls during…

Q: A consumer's weekly income is $300, and the consumer buys 5 bars of chocolate per week When weekly…

A: Explanation: Inсоme elаstiсity оf demаnd=(сhаnge in quаntity/аverаge quаntity)/(сhаnge in…

Q: and serves an average of 525 customers per week. During a recent promotion, the restaurant manager…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Question

Previously when Rafiq was earning 30000 tk per month he was
consuming 2 unit got X and 2 unit good Y. But now he is consuming 6
units good X and 1 unit good Y as his present income increased to
50000 tk.
A) Calculate elasticity of good X and identify the name of this
product.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Why is the supply curve with constant unitary elasticity a straight line?
The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for gasoline at Joe’s 66 station is -1.2. Explain what might account for the different elasticities.
Isabella always spends $50 on red roses each month and simply adjusts the quantity she purchases as the price changes. What can you say about Isabella's elasticity of demand for roses?
The president of Tucker Motors says, Lowering the price wont sell a single additional Tucker car. The president believes that the price elasticity of demand is a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic.
The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to 4? What is the elasticity of demand as the price falls from 9 to 8? Would you expect these answers to be the same?
Describe the general appearance of a demand or a supply curve with infinite elasticity.
Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
The equation for a supply curve is P=3Q8. What is the elasticity in moving from a price of 4 to a price of 7?