Homework Answers
36) can't be determined from this information
Increase in price will lead to increase in total revenue when demand is inelastic, but the increase in total revenue is unknown. Without that effect on marginal revenue cannot be determined.
37) an inferior good
Negative income elasticity means increase in income leads to decrease in quantity demanded. This happens with inferior goods.
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QUESTION 36 If the demand for a good is price inelastic and the good price is...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________...
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1. Suppose the price elasticity of demand for farm products is inelastic and the federal government...
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QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends...
QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends to be Elastic Inelastic Unit Elastic Unknown QUESTION 24 A decrease in the price of a product that a firm sells will cause the demand for it to increase. True False QUESTION 25 Economic profits are equal to total revenues minus Only implicit costs Only explicit costs Implicit and explicit costs Marginal cost QUESTION 26
Q3. The general linear demand for good X is estimated to be Q = 25,000 -...
Q3. The general linear demand for good X is estimated to be Q = 25,000 - 80P-0.25M + 72P (6 Pts) where P is the price of good X, M is average income of consumers who buy good X, and P, is the price of related good R. The values of P, M, and P, are expected to be $100, $35,000, and $60, respectively. Use these values at this point on demand to make the following computations. a. Compute the...
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of...
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of Calgary and the surrounding areas decrease, this will result in? a. an increase in the equilibrium price only. b. a decrease in the equilibrium price only. c. an increase in the equilibrium quantity and a decrease in price. d. an increase in the equilibrium quantity with no increase in price. e. a decrease in equilibrium quantity and a decrease in price. 35. If a...
Price Elasticity of Demand: Naturally Good Organics Price Elasticity of Demand measurers how changed in a...
Price Elasticity of Demand: Naturally Good Organics Price Elasticity of Demand measurers how changed in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price. In order to understand how to plan a successful pricing program, marketers must understand how elastic or inelastic the consumers are to changes in price. In other words, to what extent will a price increase or decrease result...
8. The income elasticity of demand is a measure of the responsiveness of the 0 A....
8. The income elasticity of demand is a measure of the responsiveness of the 0 A. quantity of a good demanded to changes in income. O B. quantity of a good demanded to changes in another good's price. C. 0 D. quantity of a good demanded to changes in its price. consumer's income to a change in the price of the goods he or she consumes. 9, Bus rides and canned soup are inferior goods, so the elasticity of demand...
The following scenarios describe the price elasticity of supply and demand for a particular good.
The following scenarios describe the price elasticity of supply and demand for a particular good. Elastic demand, inelastic supply Elastic demand, elastic supply Inelastic demand, elastic supply Inelastic demand, inelastic supply In which scenario will a subsidy increase consumption the most? (Click to select) Elastic demand, inelastic supply Elastic demand, elastic supply Inelastic demand, elastic supply Inelastic demand, inelastic supply
se the following data to answer the questions: Price elasticity of demand for beer = 0.23...
se the following data to answer the questions: Price elasticity of demand for beer = 0.23 Cross-price elasticity of demand between beer & wine = 0.31 Cross-price elasticity of demand between beer & spirits = 0.15 Income elasticity of demand for beer = - 0.09 (NOTE: negative) Income elasticity of demand for wine =5.03 Income elasticity of demand for spirits = 1.21 (NOTE: spirits = liquor) What can we say about price elasticity of demand (ED) for beer? The demand...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends to be Elastic Inelastic Unit Elastic Unknown QUESTION 24 A decrease in the price of a product that a firm sells will cause the demand for it to increase. True False QUESTION 25 Economic profits are equal to total revenues minus Only implicit costs Only explicit costs Implicit and explicit costs Marginal cost QUESTION 26
Q3. The general linear demand for good X is estimated to be Q = 25,000 - 80P-0.25M + 72P (6 Pts) where P is the price of good X, M is average income of consumers who buy good X, and P, is the price of related good R. The values of P, M, and P, are expected to be $100, $35,000, and $60, respectively. Use these values at this point on demand to make the following computations. a. Compute the...
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of Calgary and the surrounding areas decrease, this will result in? a. an increase in the equilibrium price only. b. a decrease in the equilibrium price only. c. an increase in the equilibrium quantity and a decrease in price. d. an increase in the equilibrium quantity with no increase in price. e. a decrease in equilibrium quantity and a decrease in price. 35. If a...
8. The income elasticity of demand is a measure of the responsiveness of the 0 A. quantity of a good demanded to changes in income. O B. quantity of a good demanded to changes in another good's price. C. 0 D. quantity of a good demanded to changes in its price. consumer's income to a change in the price of the goods he or she consumes. 9, Bus rides and canned soup are inferior goods, so the elasticity of demand...
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