2. Calculation and analysis: (1) (30 points) . Suppose that your demand schedule for compact dises...
2 (20 points). Suppose that your demand schedule for compact discs is as follows: Price Quantity Demanded Income-$10,000) 40 Quantity Demanded (Income-$12,000) a. Use the midpoint method to calculate your price elasticity of demand as the price of compact discs increases from $8 to $10 if your income is $12,000 b. Calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if the price is $16 3 (30 points). 9. Consider the following policies, each of...
Suppose that your demand schedule for compact discs is as follows: PRICE Quantity Demanded $ 8 10 12 14 16 Use the midpoint method to calculate your price elasticity of demand as the price of compact discs 40 32 24 16 increases from $8 to $10.
1. You find the following data on the demand for Compact discs in the city. Price (s) Quantity demanded (I Quantity demanded (I - $10,000) |- $12,000) 45 2. Use the midpoint method to calculate the elasticity-price of the demand when the price of CDs increases from $8 to $10, if 1) I is $10,000 and 2) I is $12,000. Briefly explains the result obtained in 1) and 2). 3. Calculate the elasticity-revenue of demand when income increases from $10,000...
1. You find the following data on the demand for Compact discs in the city. Price (s) Quantity demanded (I|Quantity demanded (I - $10,000) - S12,000) 45 al 2. Use the midpoint method to calculate the elasticity-price of the demand when the price of CDs increases from $8 to $10, if 1) I is $10,000 and 2) I is $12,000. Briefly explains the result obtained in 1) and 2). 3. Calculate the elasticity-revenue of demand when income increases from $10,000...
PRICE (5) མ ་ འདས་པ་དང་ལས་ QUANTITY DEMANDED (INcoME 30,000) 40 ། 32 QUANTITY DEMANDED [ UNcoME 52,000) 50 46 1. If your income is $10,000, use the midpoint method to calculate your price elasticity of demand as the price of compact discs increases from $8 to $10. How can you classify the demand for discs when the income is 10,000?(1mark) 2. If your income is $12,000, use the midpoint method to calculate your price elasticity of demand as the price...
7. Problems and Applications Q7 Suppose that your demand schedule for pizza is as follows: Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded (Dollars) (Income = $20,000) (Income = $24,000) 8 40 50 10 32 45 12 24 30 14 16 20 16 8 12 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $10 to $12 is if your income is $20,000 and if your income is $24,000. If the price...
Quantity Demanded (Income=$10,000) Quantity Demanded (Income-$12,000) a. Use the midpoint method to calculate your price elasticity of demand as the price of compact discs increases from $8 to $10 if your income is $12,000 b. Calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if the price is $16 3 (30 points). 9. Consider the following policies, each of which is aimed at reducing violent crime by reducing the use of guns. Illustrate each of...
THIS IS A SKILLS TEST. YOU MUST SHOW YOUR WORK TO EARN POINTS. 1. Suppose the price of apples rises from $35 to $45 per box and quantities increased from 30 to 40 boxes. Calculate the price elasticity of supply using the mid-point formula. 2. Suppose that as the price of Y falls from $2.00 to $1.90 the quantity of Y demanded increases from 110 to 118. Using the midpoint method, what is the price elasticity of demand? 3. If...
3. . Suppose that business travelers and vacationers have the following demand for airline tickets from Seattle to Washington, D.C.: Price Qty Demanded (# tickets) for business travelers Qty Demanded (# tickets) for vacationers $100 2,100 1,000 $150 2,000 800 $200 1,900 550 $250 1.800 400 As the price of tickets rises from $150 to $200, the price elasticity of demand for business travelers is __________. 2. Using the same data contained in #1, as the tickets rise from $150...
The following table shows the demand schedule for a particular good. Price Quantity $20 0 $16 3 $12 6 $8 9 $4 12 $0 15 a) Refer to the table above. Using the midpoint method, calculate the price elasticity of demand when price rises from $12 to $16. b) Which kind of elasticity did you find? Explain. c) If price increases from $12 to $16, calculate the total revenue for both price levels. d) What happens to total revenue when...