PRICE = 55776.56+0.0154SQFT². The above is the estimated relationship between house price (PRICE) and its size (SQFT). What is the price elasticity with respect to SQFT, when SQFT = 5000, evaluated at the expected value of PRICE? Select one: Oa. 1.05 O b. 1.92 O c. 1.75
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- Suppose that the price of a good changes from 10 dollars to 20 dollars while the quantity demanded changes from 200 units to 125 units. Therefore, the arc price elasticity of demand is: OA -0375. OB -0.692 OC 0012 OD -1200,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?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.
- QUESTION 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.In the market for cars, the price elasticity of supply is +1.5, and the price elasticity ofdemand is -0.8. The equilibrium price is $ 30 thousand, and quantity is 120 million.(a) Assuming supply and demand are linear, reconstruct and draw the supply and demandcurves. Label the intercepts.(b) To reduce traffic, the government imposes a $400 tax on cars. What are PB and PS after thetax? What is the new equilibrium quantity? Illustrate them on the same graph.(c) How big is the change in consumer surplus, producer surplus, government revenue, anddeadweight loss?The management of Titan Tire Company has determined that the quantity demanded r of their Super Titan tires per week is related to the unit price by the equation V144 – (0Equilibrium Price: Cell Phones Worldwide quarterly sales of a brand of cell phones were approximately g-p+ 156 millon phones when the wholesale price was sp. (a) If the cellphone company was prepared to supply qdp-34 million phones per quarter at a wholesale price of sp, what would have been the equibrium price? (6) The actual wholesale price was 105 in the fourth quarter of 2004. Estimate the projected shortage or surplus at that price. There is an estimated Select of million phonesYou 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 1.26, and since then the absolute PED of Masks declined by 30% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - Insert one word answer (increase/decrease/unchanged) (b) The market price of the mask in July was Tk15 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 Tk26 per unit and the quantity of masks sold in August is 9 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August. Do not convert into percentage. Give your answer in 2 decimal places. Eg. If you get PED = -0.253 then submit 0.25COURSE: MICROECONOMICS - TAX REGULATIONS The local diesel market is represented by Q = (912 - P)/12.5 and Q = (P - 315)/11where P is in dollars (USD) per liter of fuel and Q shows liters of fuel (in millions). Currently a tax of USD 130 per liter of diesel is charged.It is requested:(a) Calculate the amount (Q) that is transacted after the tax has been applied. Already solve few hours agob) Show in detail the calculations of a). Is there any difference between the price observed by suppliers and demanders? If so, what is the price observed by the producer and what is the price observed by the consumer? how much is the government's revenue? If there is an efficiency loss, how much is it? Already solve few hours agoc) At present, there are arguments in favor of increasing the tax on diesel and others in favor of decreasing it (at least temporarily). Mention at least ONE argument in favor of increasing this tax and ANOTHER argument in favor of decreasing it. And finally, conclude in…COURSE: MICROECONOMICS - TAX REGULATIONS The local diesel market is represented by Q = (912 - P)/12.5 and Q = (P - 315)/11where P is in dollars (USD) per liter of fuel and Q shows liters of fuel (in millions). Currently a tax of USD 130 per liter of diesel is charged.It is requested:(a) Calculate the amount (Q) that is transacted after the tax has been applied.b) Show in detail the calculations of a). Is there any difference between the price observed by suppliers and demanders? If so, what is the price observed by the producer and what is the price observed by the consumer? how much is the government's revenue? If there is an efficiency loss, how much is it? GRAPHc) At present, there are arguments in favor of increasing the tax on diesel and others in favor of decreasing it (at least temporarily). Mention at least ONE argument in favor of increasing this tax and ANOTHER argument in favor of decreasing it. And finally, conclude in favor of which argument you are in favor of.The table shows the average income of households and the quantity demanded of products M and N at different prices and levels of income. Year Average Income Price of M Quantity of M Price of N Quantity of N1 $42,000 $2.50 105 $16 7302 42,000 2.90 100 16 7003 42,000 2.90 95 28 6704 48,000 2.90 105 28 710 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places. d) What is the income elasticity of demand for product N between years 3 and 4? Round your answers to 2 decimal places. e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round your answers to 2 decimal places and remember to enter a minus (-) sign to…3- If the slope is equal to 0.5 slop, then the amount of to. Note that 7 = xi elasticity at the point is equal yi=9 Ey =0.83 O Ey =0.45 O Ey =0.38 OSEE MORE QUESTIONS