Q: 27. If the demand for a pack of cigarettes is -50-$5P For a typical smoker and the price per pack is…
A: Consumer surplus refers to the area above the price and below the demand curve. It is the difference…
Q: 6. A producer can produce 2500 units of wood parts per day at a plant located in USA. The steady…
A: Answer; Yearly DEMAND = 500 * 200 = 100000 Arrangement COST = 50 HOLDING COST = 1…
Q: 2. The opportunity cost of holding assets as money Suppose you've just Inherited $10,000 from a…
A: Answer; Ans 1) Interest rate =8, opportunity cost= 800 Interest rate= 10, opportunity cost=…
Q: Making dresses is a labor-intensive process. Indeed, the production function of a dressmaking firm…
A: production function of a dressmaking firm=Q = L − L2800 where Q denotes the number of dresses per…
Q: If a binding minimum wage is implemented in an economy, we can expect to decrease, resulting in…
A: Macroeconomics is an economics branch concerned with the economy's overall structure, performance,…
Q: . Moral Hasard and Insurance The utility is U = W¹1/2-350S +95S¹/2; where W is wealth and S is care…
A: Answer;
Q: 1. Draw five aggregate supply and demand graphs at long run equilibrium. Illustrate what would…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Write about the stages of building an economic model (econometrics methodology
A: The quantitative application of statistical conclusions, economic theory, and mathematical models to…
Q: According to Keynesians, when should the federal government run a deficit and when should it run a…
A: The Keynesians recommend the active intervention of government in economic activities to deal with…
Q: Indicate if the following statement is True or False “The basis for building a Pareto is the…
A: A scenario in which resources cannot be transferred to benefit one individual without injuring at…
Q: Counter-cyclical fiscal policy” intends to ... Group of answer choices a. Stop the business cycle b.…
A: The answer is - d. smooth out the business cycle
Q: Which of the following statements about the Prospect Theory is correct: O a. Prospect Theory relates…
A: The theory that depicts the way in choosing among various alternatives and estimation of the…
Q: 1. the object of sale and 2. on the purchase price. Briefly explain what each of these two…
A: Introduction Sales objective helps to empower the sales. And purchase price is that price which has…
Q: Suppose the Fed decided to purchase $100 billion worth of government securities in the open market.…
A: Government securities worth= $100 billion
Q: 1) Analyze the core competitive industries of Bangladesh? In this field, does Bangladesh adopt a…
A: Bangladesh is a growing economy, GDP the economy is increasing at a higher rate. Their manufacturing…
Q: 1. Let preferences of both individuals be given by log(c) +log(c₂). Suppose that the endowment…
A: There two individuals in an economy with symmetric utility function. Total supply of a good is the…
Q: 5. If both income and price increase, the direction of the change in quantity demanded cannot be…
A: When there is a change in the price of the good, while other factors affecting demand remain the…
Q: If the Fed wants to decrease the money supply using open-market operations, it should…
A: Open Market Operations is a monetary policy of buying and selling government bonds in the open…
Q: Suppose the federal funds rate is not close to zero, risk spreads are roughly constant so that…
A: The Federal Reserve uses monetary policy to change the amount of money in the economy through open…
Q: Economics A monopolist competition firm has MR=MC=50, ATC=40, P= 35 at the current outpur level of…
A: We have given MR=MC=50 , ATC=40 and p=35
Q: SLO-1.1. In centrally planned (command) economies the decides what goods and services will be…
A: There are different types of economies according to which people make their economic activities,…
Q: on what course action to take if the information is meant to help them decide on some food stipend…
A: *Answer:
Q: The most important developments that have reduced banks' cost advantages in the past twenty years…
A: BANKS Banks are the Financial institution which is legally licensed to receive deposits and provide…
Q: (d) Calculate the profit or loss of each firm at the short-run market equilibrium. If they are…
A: Competitive market with QS = 50P – 1000 and the market demand is QD = 2800 – 50P
Q: For some years, Mel has contracted with several major pizza retailers for home delivery services. He…
A: Given, New Van :Cost : 137,500 with economic life of 6 yearsTrade in value : 45,000AOC of…
Q: Explain the likely impact on the price of taxi journeys resulting from the trends shown in Extracts…
A: Predatory Pricing : Predatory pricing is a pricing strategy that entails undercutting the…
Q: If a Japanese car costs P*=1,000,000 yen, a similar American car costs P= 20,000, and a dollar can…
A: As it is given japanese car cost p*=1,000,000 yen american car cost p=20,00 e=100 yen/$
Q: QUESTION 8 Covered interest rate parity differs from uncovered interest rate parity in the following…
A: A theoretical situation in which the relationship between interest rates and the spot and future…
Q: 5) (KEY QUESTION) Consider the following data assuming that these are the only products produced and…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: suppose a small economy produces only smart TVs. in year one, 10,000 TVs are produced and sold at a…
A: Year 1 TV produced = 10,000 Sales Price = 1000 Year 2 TV Produced = 10,000 Sales Price = 1500
Q: Discuss resource market.
A: A resource market is a market where a business can proceed to buy resources to deliver labor and…
Q: You are the manager of Billy's Burritos, one of only two suppliers of tasty fish tacos in town.…
A: In Cournot duopoly, two firms compete in quantity and maximise profit by producing at MR=MC
Q: A. $107 billion surplus.
A: The Balance of payments include current account, capital account and financial accounts.…
Q: Prospect Y = ($10, 0.25 ; $13, 0.75) If Will's utility of wealth function is given by u(x)=x0.25,…
A: Prospect Y = ($10, 0.25 ; $13, 0.75) And Will's utility of wealth function is given by u(x)=x0.25
Q: a) Given the supply and demand functions: P = 300 +5Q and P = 500-5Q: Find i. The TC and TR…
A: The incremental costs spent when producing additional units of a good or service are referred to as…
Q: 5. The role of brand names and advertising Which of the following statements about expenditures on…
A: Answer: (1). Advertising is done to provide a signal to consumers about the superior quality of the…
Q: An example of fiscal policy is: A) decrease in the exchange rate OB) decrease in the price level C)…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: What are the failures of the world bank business indicators?
A: A business can be defined as a commercial activity that seeks to profit by providing goods and…
Q: According to the invisible hand concept, the best way for a society to encourage the creation of…
A: Adam Smith was an eighteenth-century Scottish economist who lived from 1723 to 1790. While Smith's…
Q: What does national security have to do with trade barriers?
A: A tariff is a tax levied on goods imported, and a quota is a quantitative limitation on goods…
Q: Market solutions would take too long
A: John Maynard Keynes more focus on demand side to come out from recession. He believe demand creates…
Q: Study sheet: Chapter 2: The Power of Trade and Comparative Advantage Absolute Advantage…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: e that shows the payoffs each firm earns from every combination of firm strategies eement among…
A: *Answer:
Q: The following six mutually exclusive projects have a life of 10 years. Use the rate of return method…
A: Given cash flow MARR=12% N=10 years
Q: 20. SG store sells its products at a price of $60,000 per unit. it is assumed that labor is the only…
A: Answer; Option (d) is correct $960,000
Q: The deflation. is a statistic used to measure the pace of inflation or Multiple Choice O index of…
A: Inflation rate refers to rate which the average price level in an economy rise. If the inflation…
Q: d. What was the growth rate of nominal GDP between 2019 and 2020? What was the growth rate of real…
A: (a) Nominal GDP in 2019=14×18+15×11=$417 and Nominal GDP in 2020=16×13+17×12=$412 (b) real GDP…
Q: Explain Veblen's theory of conspicuous consumption
A: Veblen claimed at the turn of the twentieth century that ostentatious consumption is a necessary…
Q: what are Methods for increasing marginal utility more accurate or efficient?
A: Marginal utility refers to the additional benefit derived from consuming an additional unit. This…
Q: What is the difference between digital banking and branch banking?
A: The term "digital banking" refers to banking conducted entirely online, without the use of paper…
What is the usual relationship between
elasticity and revenue?
Step by step
Solved in 2 steps
- Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a. Calculate the price elasticity of demand between 90 and 110. b. Is the price elasticity of demand between 90 and 110 elastic, unit elastic, or inelastic? c. Will Erins total revenue rise if she increases the price from 90 to 110? d. Calculate the price elasticity of demand between 110 and 130. e. Is the price elasticity of demand between 110 and 130 elastic, unit elastic, or inelastic? f. Will Erins total revenue rise if she increases the price from 110 to 130?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 Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?
- Explain why using the midpoint formula for calculating the elasticity of demand gives the same result whether price increases or decreases, but using the initial price and quantity instead of the average does not.What is the price elasticity of demand for a vertical demand curve? a. Perfectly inelastic b. Inelastic but not perfectly inelastic c. Unitary elastic d. Elastic but not perfectly elastic e. Perfectly elastic