The demand for good X is estimated to be Ox = 15,000 ? 2Px + SPy + 4M + Ax, where Px is the price of X, Py is the price of good Y, M is income, and Ax is the amount of advertising on X. Suppose the present price of good X is $50, Py = $100, M= $25,000, and Ax = 1,000 units. Based on this Information, goods X and Y are 49 Multiple Choice complementary goods normal goods Gfen goods substitute goods
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- The demand for good X is estimated to be Qxd = 10, 000 − 4Px + 5Py+ 2M + Ax, where Px is the price of X, Pyis the price of good Y, M is income, and Ax is the amount of advertising on X. Suppose the present price of good X is $50, Py = $100, M = $25,000, and Ax = 1,000 units. Based on this information, we know that the demand for good X is: Select one: A. inelastic. B. elastic. C. unitary elastic. D. neither elastic, inelastic, nor unitary elastic.The following represents demand for widgets (a fictional product): QD = -47,214 – 90P + 0.8M - 2PR where P is the price of widgets, M is income, and PR is the price of a related (fictional) good, the widget. Supply of widgets is determined by QS = 400P – 15,550 a. Determine whether widgets are a normal or inferior good, and whether widgets and widgets are substitutes or complements.The market for lemon has 10 potential consumers, each having an individual demand curve P=101-10Q1, where P is price in dollars per cup and Q1 is the number of cups demanded per week by the ith consumer. Find the market demand curve using algebra. Draw an individual demand curve and the market demand curve. What is the quantity demanded by each consumer and in the market as a whole when lemon is priced at P= $1/cup?
- Based on sales data over the past year, the owner of a DVD store devises the demand function D1p2 = 40 - 2p, where D1p2 is the number of DVDs that can be sold in one day at a price of p dollars. a. According to the model, how many DVDs can be sold in a day at price of $10? b. According to the model, what is the maximum price that can charged (above which no DVDs can be sold)? c. Find the elasticity function for this demand function. d. For what prices is the demand elastic? Inelastic? e. If the price of DVDs is raised from $10.00 to $10.25, what is the exact percentage decrease in demand (using the demand function)? f. If the price of DVDs is raised from $10.00 to $10.25, what is the approximate percentage decrease in demand (using the elasticity function)?The demand for Wanderlust Travel Services (X) is estimated to be Qx = 22,000 - 2.5Px + 4Py + 1M + 1.5Ax, where Ax represents the amount of advertising spent on X and the other variables have their usual interpretations. Suppose the price of good X is $450, good Y sells for $40, the company utilizes 3,000 units of advertising, and consumer income is $20,000. a. Is good X a normal good or inferior good? Why/Why not? b. Are goods X and Y substitutes? Why/Why not? c. Assuming the prices of good X & Y and consumer incomes remain unchanged, if the advertising spent A is increasing, how will the price elasticity of demand for good X change? Why?consider the demand function for good1, Q1 = 2452 - 7P1 + 0.4P2 - 1.25P3 + 0.09Y Where, price of good1 (P1) is 29, price of good2 (P2) is 181, price of good3 (P3) is 199, and income (Y) is 30466; (a) Find the price elasticity of demand (PED). (Give your answer to two decimal places) (b) Find the income elasticity of demand (YED). (Give your answer to two decimal places) (c) Find the cross-price elasticity of demand (XED) between good1 and good3. (Give your answer to east two decimal places) (d) Estimate the percentage change in the demand for good1 resulting from an 8% decrease in the price of good2. (Give your answer to two decimal places, if required) (e) Based on the value of YED, comment on the nature/type of the goods Answer in one word. (f) Based on the value of the XED between good 1 and good3, comment on the relationship between these two goods Answer in one word.
- Harding Enterprises has developed a new product called the “Quest Simulator (QS)”. The market demand for this product is given as follows: Q = 240 - 4P. If QS is priced at $40, what is the point price elasticity of demand? Is demand elastic or inelastic? What is the maximum amount that consumers are willing to pay for the quantity demanded at the price of $40? (hint: it includes both the total expenditures and the consumer surplus) If the price of QS is increased slightly from $40, what will happen to the total expenditure on the product? What will happen to the consumer surplus? 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 sure.IS THIS ANSWER CORRECT The price elasticity of demand for bread is computed as the percentage change in quantity being demanded with respect to the percentage change in price. Hence, option A is correct. When there is a new product that is a close substitute for bread, the price elasticity of demand for bread would be higher. Hence, option B is correct. When the bread is considered to be a necessity good, the price elasticity of demand for bread would be higher. Hence, option C is correct. Hence, the correct option is D.Corrupt officials may have an incentive to reduce the provision of government services to help line their own pockets. Suppose that the provincial construction supervisor decides to cut the total number of housing inspectors from 20 to 10 in order to decrease the supply of new housing permits. This decrease in the supply of permits raises the equilibrium bribe from $1,000 to $2,500. How much per year will the construction supervisor now receive if he is still getting half of all the bribes collected by the 10 inspectors? How much more is the construction supervisor getting now than when he had 20 inspectors working in part b? Will he personally be happy with the reduction in government services?
- 1.5 Your firm, Content Friend, is similar to Happy Labourer, a Ghanaian firm that designs and manufactures artifacts and souvenirs. Your research analyst has estimated the demand function for your kente souvenirs is Qd = 33 - 4P If you set the price of a plush kente souvenir at $5, how many will consumers buy? If you increase the price of a plush kente souvenir by $1, how will this change the quantity that your customers buy?Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.5. If a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 30%, it should increase the price by . If the government permanently increases the price of cigarettes, the effect on smoking 1 year from now will be than the effect 5 years from now. Studies also find that teenagers have a higher price elasticity of demand than do adults. Which of the following statements are consistent with this result? Check all that apply. It is legal for adults to consume alcohol, so many choose to spend their money on that good rather than cigarettes. Adults are more likely to be addicted to cigarettes. Teenagers do not have as much income as adults, so they are more price sensitive.A website offers a place for people to buy and sell emeralds, but information about emeralds can be quite imperfect. The website then enacts a rule that all sellers in the market must pay for two independent examinations of their emerald, which are available to the customer for inspection. How would you expect this improved information to affect demand for emeralds on this website? How would you expect this improved information to affect the quantity of high-quality emeralds sold on the website?