Suppose the demand for L.L. Bean coats is illustrated in the figure to the right. Suppose the price of L.L. Bean coats is $30. What is total revenue? $ response using a real number rounded to two decimal places.) Now suppose the price of L.L. Bean coats increases to $80. What is total revenue now? $. Given the change in total revenue caused by the price increase, demand for L.L. Bean coats is inelastic (Enter a numeric elastic 8 Price of L.L. Bean coats 140- 130- 120- 110- 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0+ 0 20 40 60 80 100 120 140 160 180 200 Quantity of L.L. Bean coats.

Suppose the demand for L.L. Bean coats is illustrated in the figure to the right. Suppose the price of L.L. Bean coats is $30. What is total revenue? $ response using a real number rounded to two decimal places.) Now suppose the price of L.L. Bean coats increases to $80. What is total revenue now? $. Given the change in total revenue caused by the price increase, demand for L.L. Bean coats is inelastic (Enter a numeric elastic 8 Price of L.L. Bean coats 140- 130- 120- 110- 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0+ 0 20 40 60 80 100 120 140 160 180 200 Quantity of L.L. Bean coats.

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 3PA: Suppose the price elasticity of demand for heating oil is 02. in the short run and 0.7 in the long...

See similar textbooks

Similar questions

Hand Sanitizer Due to the H1N1 flu outbreak, the demand for hand sanitizer has tripled. Should Johnson & Johnson increase production of their Purell hand sanitizer? Should it invest in doubling production capacity?
(a) Due to the increase in the demand for video games, the equilibrium price of video games increases by 10 percent, and the equilibrium quantity increases by 5 percent. Is the price elasticity of demand for video games elastic, inelastic, or indeterminate? Explain your answer (with calculation if possible). Is the price elasticity of supply of video games elastic, inelastic, or indeterminate? Explain your answer (with calculation if possible). (b) Suppose Marcus produces chocolate with two inputs: factory and labor. If the workers become more productive with better training, state whether the average fixed cost, average variable cost, average total cost, and marginal cost will rise or fall? (c) After one month of operation, OU Café determined to shorten its business hours and close on weekends. What costs, fixed or variable, should OU Café have considered when it…
(a) Due to the increase in the demand for video games, the equilibrium price of video games increases by 10 percent, and the equilibrium quantity increases by 5 percent. Is the price elasticity of supply of video games elastic, inelastic, or indeterminate? Explain your answer (with calculation if possible). (b) Suppose Marcus produces chocolate with two inputs: factory and labor. If the workers become more productive with better training, state whether the average fixed cost, average variable cost, average total cost, and marginal cost will rise or fall?
Q8- Suppose the quantity demanded weekly of the Super Titan radical tires is related to its unit price by equation p+x^2=241, where p is measured in dollars and x is measured in units of a thousand. How fast is the quantity demanded changing when x= 13, p= 72, and the price/tire is increasing at the rate of $7/ week? Round the answer to the nearest integer. Dropping at the rate of _______ tires/wk
(a) Due to the increase in the demand for video games, the equilibrium price of video games increases by 10 percent, and the equilibrium quantity increases by 5 ercent. Is the price elasticity of demand for video games elastic, inelastic, or indeterminate? Explain your answer (with calculation if possible). Is the price elasticity of supply of video games elastic, inelastic, or indeterminate? Explain your answer (with calculation if possible). (b) Suppose Marcus produces chocolate with two inputs: factory and labor. If the workers become more productive with better training, state whether the average fixed cost, average variable cost, average total cost, and marginal cost will rise or fall? (c) After one month of operation, OU Café determined to shorten its business hours and close on weekends. What costs, fixed or variable, should OU Café have considered when it made the de
It has been suggested that homeowners be allowed to deduct part of their mortgage (loan to buy a home) interest payments on their income tax forms. If such a policy were to be adopted, what effect would it have on the demand for houses? Explain your answer with the use of a graph. Show the effect on the price of houses, assuming that the supply of houses is very inelastic in the short run.
In “A Former Crack Dealer on the Economics of Drugs,” they mention demand for crack is inelastic. Draw a supply and demand curve and show how total revenue changes when there is a decrease in supply. How is this related to the fact that drugs are illegal? That is, what would happen to total revenue if drugs were made legal?
Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Which curve will shift: supply or demand? In which direction will the curve shift: right or left? (It may help to use a demand and supply diagram to conduct your analysis.) a. The number of people at the most common ages for home-buying decreases. b. Rents rise extremely rapidly. c. Banks that have made home loans find that a larger number of people than they expected are not repaying those loans. d. Because of a threat of a war, people become uncertain about their economic future.The overall level of saving in the economy diminishes. e. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.
Only one thing can cause movement along a product’s demand curve --- that is, cause a change in quantity demanded for that product --- and that’s a change in that product’s price. On the other hand, there are five key variables that can cause a product’s demand curve to shift to the left or right --- that is, lead to a change in demand. Coca-Cola is experiencing shifts in the U.S. demand curve for its famous cola soft drink, as the huge post-World War II “Baby Boom” generation has aged beyond their prime soft drink consumption years, and as the smaller generations behind the Baby Boomers have been buying relatively more energy drinks, water, juice, and tea, and relatively less soda than previous generations. What two key variables are affecting demand for Coca-Cola in the U.S., and in which direction are these variables shifting the demand curve for Coke?
Explain what would happen in the following markets given the following demand or supply shocks. In your answer clearly state what happened to supply or demand (whether it increased or decreased) and what would likely happen to the equilibrium price and quantity as a result, other factors constant. Market: Electric vehicles. Shock: Due to the recently enacted CHIPS Act, there is a significant decrease in the price of U.S. semiconductors, which are used as an input in the production of electric vehicles. Market: In home exercise equipment. Shock: Due to the waning concerns around the COVID-19 pandemic and loosening restrictions, U.S. consumers go back to gyms and public recreational centers. Market: U.S. Cotton. Shock: There is a significant drought in the Southwestern U.S., where the majority of U.S. cotton is grown. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for…
If the income elasticity for lobster is 0.4, a 40% increase in income will lead to a:* 10% drop in demand for lobster. 16% increase in demand for lobster. 20% increase in demand for lobster. 4% increase in demand for lobster. You are the manager of a supermarket, and you know that the income elasticity of peanut butter is exactly –0.7. Due to the economic recession, you expect incomes to drop by 15% next year. How should you adjust your purchase of peanut butter?* Buy 10.5% more peanut butter. Buy 2.14% more peanut butter. Buy 6.2% less peanut butter. Buy 9.8% less peanut butter. When total revenue of the seller decreased caused by an increase in price, the demand for the product is said to be _______________.* Inelastic unit elastic elastic perfectly elastic
Question 3: Briefly list and elaborate on the factors that will be affecting the supply of the following products in the next several years. Do you think these factors will cause the supply to increase or decrease? Crude oil: Hotel Rooms Beef Fast Food outlets Laptop Computers