9. Suppose Q " = 10,000 – 2 P, + 3 P, - 4.5M, where P, = $100, P, = $50, and M What is the own price elasticity of demand? А.-2.34 В. -0.78 С. -0.21 = $2,000. D. -1.21
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- The demand function for bicycles in Holland has been estimated to be Q = 2,000+ 15Y - 7.5P = where Y is income in thousands of euro, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euro and Y what is: The price elasticity of demand? -1.02 O -7.5 -0.24 -0.50 The income elasticity of demand? 0.20 1.02 1.00 O 0.14 15,000 euro,0037 The quantityy demrded each month of a certain brand of coffee machine is 280 when the unit price is $50. For each decrease in unit price of $6 below $50. the quantity demanded increases by 40 its What is the demand function? Op-5/28 8 Op--3/20 x + 92 Op-3/20 + 8 Op- 5/28 + 14. The market demand for cashmere socks is given by: Qª = 1,000 +.51 -400P, + 200P, where P. is the price of a pair of cashmere socks Pw is the price of a pair of wool socks Let I = $20,000, P. = $10, and P, = $5. %3D |At current prices, what is the own-price elasticity of demand for cashmere socks? а. Is demand elastic or inelastic? b. At current prices, what is the cross-price elasticity of demand for cashmere and wool socks? Are they substitutes or compliments? |At current prices, what is the income elasticity for cashmere socks? Are cashmere с. socks normal or inferior goods?
- The management believes that every 9% decrease in the selling price of one of the company's products would lead to a 15% increase in the product's total unit sales. The product's variable cost is ₱11.80 per unit. The product's price elasticity of demand is closest to: a. -1.12 b. -1.34 c. -1.61 d. -1.48 The product's profit-maximizing price is closest to: a. ₱31.19 b. ₱46.07 c. ₱106.31 d. ₱36.28QUESTION 5 Hanna Corporation markets a compact microwave oven. In 2010 they sold 23,000 units at $375 each. Per capita disposable income in 2010 was $6,750. Hanna economists have determined that the arc price elasticity for this microwave oven is -1.2. Which the following statement is wrong? O A price decrease in 2011 will help company revenue growth. Asuming that all other thing remain equal, sales volume for 2011 are 27,312 if price is reduced to 325. Assume that arc income elasticity for microwave ovens is 2.5 and price and income effects are independent and additive. Given that the price is reduced to $325 and that per capita disposable income increases to $7,000, sales volume for 2011 will be 29,032. O A price increase in 2011 will help company revenue growth.2. A car importer was preparing in September 2021 to accept the 2022 models. In order to clear the stock of cars of older models, it offered in August 2021 a discount of €1,750 from the normal price of €52,500. As a result, sales increased from the average level of 50 units to 75 units in the month of August. (a) On the basis of the normal price, calculate the price elasticity. b) What discount had to be made in September in order to sell the remaining stock of 90 cars of model 2021?
- A pizza restaurant raises the price of their pizza by 20%. As a result, they witness a 10% decrease in the quantity demand of their pizza. What is the price elasticity of demand for this pizza restaurant? O-10 -.25 O -2 O -0.5P = 450 – 4Qp %3D 1 P =Qs + 25 4 Calculate demand elasticity at equilibrium: 1/8 O -1/8 8. -8%3D Suppose Marshellian demand is x = What is the own-price elasticity of demand (e,p, ) when p, = 18. p, = 24, I = 36? P.P a. ex.p. = -3 O b. ex.p. = -2 O c. ex.p. = -1 d. ex. = () O e. ex.p. Of. ex.p. = 2 g. ex.p. = 3
- Solve for %AP or %AQ using the respective Elasticity measure. (a) In non-absolute value form, if nop,P = -0.5 and %AQ = 16%, what is %AP? (b) In non-absolute value form, if nop,P -2.5 and %AQ = -10%, what is %AP? (c) In non-absolute value form, if nqp,P = -1.0 and %AP = -10%, what is %AQ?Consider the following demand and supply functions. Demand: D(p) 2750-20p Supply: S(p)= 10p-430 a) First, assume that no taxes are imposed. Find the equilibrium price and quantity. Price $ 1. Quantity = b) Now assume a specific tax of $6 per unit is imposed on suppliers. Find the new equilibrium price and quantity. New Equilibrium Price = $ New Equilibrium Quantity O 1. c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer? Consumer pays $ 1. Producer pays $ d) How much tax revenue is generated for the government? Total Tax Revenue to the government = $(? W 140--+ 70 50 20 Demand 8 20 28 56 QUANTITY (Units) For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. Region Elastic Inelastic Unit Elastic Between X and Y Between W and X Between Y and Z True or False: The value of the price elasticity of demand is equal to the slope of the demand curve. True False PRICE (Dollars per unit) L--