Problem 12: A consumer buys 80 units of a good at price of 5 per unit. If price elasticity of demand is (-)2, at what price will he buy 64 units?
Q: If the price elasticity of demand for an annual magazine subscription is -1.6, what happens in the…
A: Option (a) is correct.
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A: Price elasticity of demand refers to responsiveness of quantity demanded to changes in price.
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A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: A consumer buys 160 units of a goods at a price of 8 per unit. Price falls to 6 per unit. how much…
A: The initial price of goods = 8 Final price of goods = 6 Initial quantity = 160 units Elasticity of…
Q: of demand
A: The price elasticity of demand is being measured dividing the change of percentage in quantity being…
Q: A consumer buys 10 units of goods X at a price of $5 per unit. the price elasticity of demand for…
A: At price $5, the quantity bought = 10 units Price elasticity of demand = 2 New price = $4
Q: If the price elasticity of demand is 0.15, and the price is doubled, this will lead to a a. 30…
A:
Q: the market demand for a good at $4 per units is 100 units. the price rises and as result its market…
A: Initial price = $4 Initial quantity = 100 units New price = ? New quantity = 75 units Elasticity of…
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A: Cross elasticity of demand measures the responsiveness of changes in the demand for one good caused…
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A: Price elasticity of demand is the index that is calculated by dividing the percentage change in…
Q: Suppose the own price elasticity of demand for good X is –2, its income elasticity is 3, and the…
A: Price elasticity of demand refers to the responsiveness of the change in quantity demand due to…
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A: Given When the price is decreased from $10α to $5 then the quantity demanded increases from 100β to…
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Q: Suppose the quantity demanded of good x has increased from 60 to 80 units, due to a decrease in its…
A: The responsiveness of change in quantity demanded owing to a change in the price of the good is…
Q: If the individual demand function for good X is given by X - 100-2px-4py +I, where px= Py = $20 and…
A: Cross price elasticity of demand shows the change in price of one good will change in demand of…
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A: Unit elastic demand is the economic theory that expects an adjustment of product cost causes an…
Q: The price elasticity of demand for widgets is 0.80. Assuming no change in the demand curve for…
A: Price elasticity of demand= Percentage change in quantityPercentage change in price Where;…
Q: Suppose a good has a demand curve given by Q = 20 - 8 × P. What is the price elasticity of demand if…
A:
Q: A consumer buys 100 units of a good at a price of 8 per unit if the price elasticity of demand is -2…
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Q: If the price elasticity of demand for a product is 5, and prices decrease 10 percent then demand…
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Q: You own a company selling wristwatches. This is its inverse demand equation: Q = 10 - (P/60) Part A:…
A: Price Elasticity of Demand The price elasticity of demand measures the responsiveness of change in…
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A: Income elasticity of demand measures how change in income affects demand for a product.
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.…
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A: Demand curve is a downward sloping curve showing inverse relationship between price of a good and…
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Q: If the cross-price elasticity of demand between good A and good B is -1.25, then the goods are A…
A: Cross-price elasticity: - Cross-price elasticity of demand measures the responsiveness of change in…
Q: If the price elasticity of demand for good X is 0.8
A: Elasticity of demand is a technique with the help of which change in quantity demanded is measured…
Q: If a 12 percent increase in the price of Cheerios causes a 22 percent reduction in the number of…
A: The elasticity of demand (or Ed in short-form) is a notable tool applied by the business companies…
Q: Suppose the own price elasticity of demand for good X is -4, its income elasticity is -2, its…
A: here elasticity is given by using the formula we calculate the change in consumption or quantity…
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Q: If the price elasticity of demand for a product is equal to 0.5 then a decrease in price of 10…
A: The price elasticity of demand is the ratio of the percentage change in quantity demanded to the…
Q: Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its…
A: a. Given The Price elasticity of demand for good X = -3 (Negative sign indicates that there is an…
Q: If a 10 percent decrease in the price of a good leads to a 20 percent increase in the quantity…
A: Price elasticity of demand measures the responsiveness of quantity demanded for a good due to…
Q: The price elasticity of demand for magazines is 0.4. The price elasticity of demand for newspapers…
A: The price elasticity of demand is the degree of responsiveness of change in quantity demanded due to…
Q: The price elasticity of supply of good X is.
A: A good or service's responsiveness to supply after a change in its market price is measured by its…
Q: Suppose the own price elasticity of demand for good X is -2 its income elasticity is 3, and the…
A: Price elasticity of demand is the ratio of the percentage change in quantity demanded of a product…
Q: A consumer's weekly income is $700, and the consumer buys 7 bars of chocolate per week. When weekly…
A: Income elasticity of demand depicts how much consumer responds with the change in his/her income.
Q: Suppose a good has a downward-sloping, straight-line demand curve. If the price elasticity of demand…
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Q: The price of good X decreases by 6%. The price of good Y increases by 7%. Advertising decreases by…
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A: Answer to the question
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A: Concept: The elasticity of demand refers to the change in the quantity demanded due to a change in…
Q: If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded…
A: Given data: Price elasticity of demand for gasoline is 1.8 Decrease in quantity demanded is 15%
Q: d of our good X increased from 1000 to 1500 units as a consequence of a decrease in price from $45…
A: Given: New Qx=1500 units Old Qx=1000 units New Px=$41 Old Px=$45
Q: Suppose the own price elasticity of demand for good X is -5, its income elasticity is 2, its…
A: a) Price elasticity of demand is given as Ed= % change in quantity of good X/ % change in price of…
Q: If the cross elasticity of demand for two goods, A and B, is -5,0, then this implies that these…
A: Cross price elasticity of two goods shows the measurement of percentage change in quantity demanded…
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- (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more elastic over a shorter or a longer period of time?If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.The formula to calculate elasticity using the arc method is given below: E=Q2-Q1Q1+Q22P2-P1P1+P22Where,Q1= initial quantityQ2=new quantityP1=initial priceP2=new price E=340-306306+340221-2424+212E=34323-322.5E=34×22.5323×-3E=765-969E=-0.79 The value of elasticity in absolute terms is 0.79. Since the value of elasticity in absolute terms is less than one (0.79<1) the demand is inelastic. Can you put the above in correct format as per the formolation i get the answer different so not sure if i am doing something wrong see pic.
- The demand function for a product is modeled by p = 400 − 2x, 0 ≤ x ≤ 200, where p is the price per unit (in dollars) and x is the number of units. Determine when the demand is elastic and inelastic. (Enter your answer using interval notation. If an answer does not exist, enter DNE.) Determine when the demand is of unit elasticity.Worldwide annual sales of smartphones over a two year period were approximately q=-4p+3020 million phones at a selling price of $p per phone. (a) obtain a formula for the price elasticity of demand E E=_____ (b) in one of the years the actual selling price was $305 per phone. What was the corresponding price elasticity of demand? E=_____ (c) The demand was going down by about _____% per 1% increase in the price at that price level. (d) use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $____ What would’ve been the resulting annual revenue? $____ billionthe demand function for a commodity is Q-500-5P. find out point arc elasticity for fall in price from rs 25 to rs 20.
- These questions require application of economic theory relating to elasticity of demand andsupply. All calculations must be shown in full. Answer ALL the questions.Q.3.1 A store that sells maize meal discovers that when the price of 1kg maize meal IsR24 per kilogram, the quantity demanded is 306 kgs per week. When the pricedecreases to R21 per kg, then the sales increase to 340 kgs per week. Use thisinformation to answer questions Q.3.1.1 and Q.3.1.2 below.Q.3.1.1 Determine the price elasticity of maize meal using the Arc method. (5)Q.3.1.2 Discuss the relationship between the price elasticity of maize mealand the total revenue the store received from the sales. Advise thestore on an appropriate pricing strategy.(7)Q.3.2 The store selling maize meal makes a further discovery, when the price of ricechanges from R30 per kg to R26 per kg, then the quantity of rice demandeddecreases from 1360 kg per month to 1238 kg per month. Use this informationto answer Q.3.2.1 and Q.3.2.2 below.Q.3.2.1…Worldwide annual sales of smartphones over two year period were approximately q=-5p+3040 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E=_______ (b) in one of the years the actual selling price was $375 per phone. What was the corresponding price elasticity of demand? E=_______ The demand was going down by about _____% per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. $_______ What would’ve been the resulting annual revenue? (Round your answer to two decimal places) $_____billionDEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 9. Calculate the price elasticity, cross-price elasticity, and income elasticity of demand for cement. Explain these figures. Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
- Worldwide annual sales of smartphones over a two year period were approximately q=-5p+3030 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. (b) in one of the years the actual selling price was $365 per phone. What was the corresponding price elasticity of demand? The demand was going down by about _____% per 1% increase in price at the price level. (c)Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. $______ What would’ve been the resulting annual revenue? (Round your answer to two decimal places.) $______billionWorldwide annual sales of smart phones in over a five-year period were projected to be approximately q=-10p+4440 million phones at a selling price of $P per phone. Obtain a formula for the price of elasticity of demand E. In one particular year the actual selling price was $271 per phone. What was the corresponding price elasticity of demand? Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. What, nearest to the nearest 10 million, would have been the resulting annual revenue?demand for a product is related to its selling price P (in dollars) by the equation n=2800-100p where n is the number of fans that can be sold per month at a price P. Find the selling price that will maximize the revenue.
