When sales are being maximized, it is true that O demand is elastic. O profits must also being maximized. O profits could be increased by reducing the level of production. O demand is relatively inelastic. owners and commission-based employees will be equally satisfied.
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- The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the unemployment related to the Covid-19pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income elasticity of demand for rice isapproximately -0.5. Given that rice is agood, the manager should stockrice.O A. normal: 109 moreO B. inferior: 12.595 moreO C. inferior: 12.59 lessO D. normal: 12.596 lessMr. Shrikant always spends 20% of his income on commodity 'X'. The income elasticity of demand for commodity 'X' is O a. 0,15 O b. 6.67 OC -0.15 Od . 1d. Holding Donald's income and Pd constant at $120 and $1 respectively, what is Donald's demand curve for carrots? e. Suppose that a tax of $1 per unit is levied on donuts. How will this alter Donald's utility maximizing market basket of goods? f. Suppose that, instead of the per unit tax in (e), a lump sum tax of the same dollar amount is levied on Donald. What is Donald's utility maximizing market basket? g. The taxes in (e) and (f) both collect exactly the same amount of revenue for the government, which of the two taxes would Donald prefer? Show your answer numerically and explain why Donald prefers the per unit tax over the lump sum tax, or vice versa, or why he is indifferent between the two taxes.
- If demand is price elastic and price decreases, then Select one: O a. the extra revenue from the extra units sold is less than the loss in revenue from the lower price O b. the extra revenue from the extra units sold is exactly offset by the loss in revenue due to the lower price O c. the extra revenue from the extra units sold exceeds the loss in revenue from the lower price O d. more information is necessary to determine what happens to total revenueIf Andrew would like to buy slippers, he has to check the prices and the number of quantities that will fit to his financial capabilities. If at a price of $220 he can buy 3 slippers, however if he will be given a discount of $50, he would like to buy 5 slippers. Show the value of E using the Price elasticity formula and identify the kinds of E. Let’s see of his capabilities be translated based on his income of $8,000 and an increase of 20% with the same number of slippers. What do you think of his EY and what kind of goods he is capable of buying? On the other hand if changes in price would be interpreted by looking at its cross relationship with same price original and a 35% increase in price due to inflation, but still Andrew, considered the same number of quantities since its Christmas season.Kk177. Suppose the market demand function is given as;Qd = 5I + 10P_1 − 0.4P^2where I is income in $1000 and P1 is price of a related good.(a) What is the relation between these two goods?(b) Calculate the income, cross price, and own price elasticities of demand if I = $50,000, P1 = $10 and P = $20.(c) At what price is demand unit elastic if I = $50,000 and P1 = $10?
- Jason Stilton is the chief executive officer of RightLiving a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors for 85% of the value of the future benefit. The patients recieve the cash to use for medical and other expenses and the investors are guaranteed a positive return on thier investment. The diffreance between the purchace and sale prices is the RightLivinf Profit. Stilton is aware that some sick patients may obtain insurance policies through fraud (Not revealing thier illness on the insurance application). An insurance company that discovers such will cancel the policy and refuse to pay. Stilton beleives that most of the policies he has purchased are legitimate, but he knows some are probably not. Question Using IDDR approch, discuss the decision process Stilton should use in deciding whether to disclose the risk of fraudulent policies to potential investors.A consumer’s preferences over two goods x and y are given bythe utility function U(x, y) = xαyβ with α, β > 0. The prices of the goods are px = 2 and py = 4.The consumer has an income of I > 0.(a) For what values of α and β are these utility functions strictly monotone?(b) For what values of α and β will the consumer demand (i.e., Walrasian demand) be more x than y?(c) For what values of α and β are these goods gross substitutes? For what values of α and β are these goods gross complements? Provide a justification for your answer.Assume that the price of commodity Y rises by 13.5% and the cross price elasticity of demand with commodity X is 1.35. According to this situation, commodity X is O a. not related to commodity Y as the exact price of commodity Y has not been specified b. a complementary product as cross price elasticity of demand is positive O c. a substitute as cross price elasticity of demand is negative d.a substitute as cross price elasticity of demand is positive
- Give only typing answer with explanation and conclusion The elasticity of the house value with respect to the concentration level of PM10 is -9.3. Then a 11% decrease in the concentrations level of PM10 will change the house value by how much? (note: if the house value increases input a positive number if the house value decreases input a negative number)(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 decreasePlease ASAP. Thank you. QUESTION Slope is sometimes defined as rise over run. If we raise the price of an appointment by $50 and the associated new quantity of visits increases by 10, we can say that for every $50 increase in the prices we can expect an increase of 10 visits. What is the slope with regard to price? A. 50/10 B. Zero C. Undefined D. 10/50 QUESTION In causal terms, slope can be expressed as the magnitude or sensitivity of response.TrueFalse