(True or false) Demand is negativley sloped. Supplu is perfectly inelastic. Putting a sales tax on buyers will cause the market price paid by buyers to sellers to decrease
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- Only typed answer Suppose the price of a good increased from $3 to $4. In response, the consumer has decreased his consumption from 15 units to 10 units. The price elasticity of demand isThe original income was R5000 and the quantity demanded wasR3000 there was an increase in income from R5000 to R7000 and an increase in the quantity demanded from R300 to R500.Draw the demand graph.You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.86, and since then the absolute PED of Masks declined by 55% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - (b) The market price of the mask in July was Tk20 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk28 per unit and the quantity of masks sold in August is 12 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August.
- Suppose the income elasticity for Royal Castle Brie Cheese is nI = 2 . Economists predict a strong rebound in economic performance this year, and predict that GNP will grow by 5%. What effect will this have on Royal Castle Brie Cheese sales. Question: What is the estimate percentage change in sales ________If a $20 decrease in price of long distance calls from ($50-$30) leads to a $45 increase in quantity of calls demanded from ($80-$125). Conclude that demand for phone calls is Unitary elastic Elastic Inelastic Note: draw graph also3. Your marketing research department provides the following estimated demand function for your product: QD = 150 – 6.5P + 0.3Income, where P is the price of your product and Income is the average income of the consumers for your product. a. The T statistic for the price coefficient is -2.2. What can you conclude about the coefficients statistical significance? Explain.
- A 3.02 percent increase in the price of tea causes a 7.11 percent increase in the demand for coffee. The cross-price elasticity of demand for coffee with respect to the price of tea is: Select one: a. 0.30 b. 10.13 c. 21.47 d. 2.35A persent increase in the price of a good results in a percent increase in total revenue . from this information , it can be concluded that the demand over this range of prices a has increased by 14 % b is inelastic c is upward sloping d has price elasticity of demand equals to 2.5q3- What is the correct interpretation of elasticty value of 0.5 for Y with respect to X? Select one: a. If X increases by 1 unit, Y increases by 0.5 unit. b. If X increases by 1%, Y increases by 0.5%. c. If Y increases by 1 %, X increases by 0.5 %. d. If Y increases by 1 unit, X increases by 0.5 unit.
- Analyse the cross price elasticity of demand for wheat and rice when a change in the price of wheat from Rs.70 to Rs. 90 results in a change in the quantity demand for wheat from kg 3000 to kg 5000 in the market. Interpret the value of the coefficient.A single producer company surveyed the elasticity data of its product X. The results indicated that: - X has an income elasticity of +0.8 - The cross-elasticity of X with Y is equal to -0.7 - The price elasticity of X is |0.8| Given these results, the company estimated that the forecast increase in consumer income is 5% next year, the expected increase in the price of Y is 10%. If the company intends to increase its sales by 3% in the following year, what is your recommendation for an adjustment in the price of X? (Hint: Consider the increase in income, then the effect of Y on X and then calculate the price adjustment to be made)20. Cross-price elasticity is used to determine whether goods are: Group of answer choices A. inferior or normal goods B. necessities or luxuries C. none of the answers are correct. D. complements or substitutes