Suppose the price elasticity of demand of alcohol is -2, the cross-price elasticity of demand between...
Homework Answers
percent change in alcohol demand/percent change in price of marijuana = - 0.5
percent change in alcohol demand = - 0.5 x 10% = - 5%
percent change in alcohol demand/percent change in price = - 2
to offset decrease in alcohol demand:
percent change in price = - 5%/2 = - 2.5% (decrease)
Add Answer to:
Suppose the price elasticity of demand of alcohol is -2, the
cross-price elasticity of demand between...
1.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread...
1.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread falls by 10%, the quantity demanded will increase by: a. 2 percent and total expenditures on bread will rise. b. 2 percent and total expenditures on bread will fall. c. 20 percent and total expenditures on bread will rise. d. 20 percent and total expenditures on bread will fall. e. 20 percent and total expenditures on bread will be unchanged. 2.) Suppose that a...
A.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread...
A.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread falls by 10%, the quantity demanded will increase by: B.) Suppose that a 10% increase income causes a 20% increase in demand for good X. The coefficient of the income elasticity of demand is: C.) The price of a weekly magazine decreases from $1.90 to $1.50. The quantity demanded increases from 100,000 to 200,000 copies. The price elasticity of demand in this range is:...
show your calculations to prove your answer 3. In Germany, the elasticity of oil demand has...
show your calculations to prove your answer
3. In Germany, the elasticity of oil demand has been estimated at -0.5. How much would the price of oil have rise in order to cut oil consumption by 50%? 4. The elasticity of oil demand has been estimated at -0.5. If the price of oil rises by 10%, how much will the quantity of oil demanded fall? 5. Suppose we know that the price elasticity of demand of good X is equal...
Question 14 0.25 pts 14. Price elasticity of demand is known to be -10.0, and the...
Question 14 0.25 pts 14. Price elasticity of demand is known to be -10.0, and the firm lowers price by 10%. Which of the following expectations is most accurate? Revenue will fall, because the quantity demanded will drop by 100%. O Revenue will not change, because the increase in the quantity demanded will just offset the lower price. Revenue will rise, because the increase in the quantity demanded will more than offset the lower price. Revenue will fall, because the...
Question 13 0.25 pts 13. Price elasticity of demand is known to be - 0.7, and...
Question 13 0.25 pts 13. Price elasticity of demand is known to be - 0.7, and the firm lowers price by 10%. Then which of the following expectations is most accurate? Revenue will fall, because the quantity demanded will drop by 7% Revenue will fall, because the quantity demanded will not change O Revenue will rise, because the increase in the quantity demanded will more than offset the lower price. Revenue will fall, because the increase in the quantity demanded...
The cross-price elasticity of demand for books and magazines is −2.0. If the price of magazines...
The cross-price elasticity of demand for books and magazines is −2.0. If the price of magazines decreases by 10 percent, the quantity demanded of books will: Multiple Choice fall by 20 percent. rise by 20 percent. rise by 2.0 percent. fall by 2.0 percent.
Suppose Joe's price elasticity of demand for tennis balls is _____. If the price of tennis...
Suppose Joe's price elasticity of demand for tennis balls is _____. If the price of tennis balls has decreased by 14%, then it can be concluded that the quantity of tennis balls demanded by Joe has ______ by 7%, everything else held constant. A.) 0.5, increased B.) 0.5, decreased C.) 2.0, increased D.) 2.0, decreased
2. A Calculate the cross-price elasticity of demand between bread and butter where a 20 percent...
2. A Calculate the cross-price elasticity of demand between bread and butter where a 20 percent decrease in the price of bread results in a 50 percent increase in the quantity of butter demanded. Explain your answer. B. Calculate the income elasticity of demand for sweaters where a 10 percent increase in income leads to a 25 percent decrease in the quantity of sweaters demanded at a given price. What type of a good is a sweater? Why?
2. A Calculate the cross-price elasticity of demand between bread and butter where a 20 percent...
2. A Calculate the cross-price elasticity of demand between bread and butter where a 20 percent decrease in the price of bread results in a 50 percent increase in the quantity of butter demanded. Explain your answer. B. Calculate the income elasticity of demand for sweaters where a 10 percent increase in income leads to a 25 percent decrease in the quantity of sweaters demanded at a given price. What type of a good is a sweater? Why?
The cross-price elasticity of demand for steak with respect to a change in the price of...
The cross-price elasticity of demand for steak with respect to a change in the price of pork chops is estimated to be 0.42. What would be the effect on the quantity of steak demanded if the price of pork chops increased by 5%? Are steak and pork chops substitutes or complements?
show your calculations to prove your answer
3. In Germany, the elasticity of oil demand has been estimated at -0.5. How much would the price of oil have rise in order to cut oil consumption by 50%? 4. The elasticity of oil demand has been estimated at -0.5. If the price of oil rises by 10%, how much will the quantity of oil demanded fall? 5. Suppose we know that the price elasticity of demand of good X is equal...
Question 14 0.25 pts 14. Price elasticity of demand is known to be -10.0, and the firm lowers price by 10%. Which of the following expectations is most accurate? Revenue will fall, because the quantity demanded will drop by 100%. O Revenue will not change, because the increase in the quantity demanded will just offset the lower price. Revenue will rise, because the increase in the quantity demanded will more than offset the lower price. Revenue will fall, because the...
Question 13 0.25 pts 13. Price elasticity of demand is known to be - 0.7, and the firm lowers price by 10%. Then which of the following expectations is most accurate? Revenue will fall, because the quantity demanded will drop by 7% Revenue will fall, because the quantity demanded will not change O Revenue will rise, because the increase in the quantity demanded will more than offset the lower price. Revenue will fall, because the increase in the quantity demanded...
2. A Calculate the cross-price elasticity of demand between bread and butter where a 20 percent decrease in the price of bread results in a 50 percent increase in the quantity of butter demanded. Explain your answer. B. Calculate the income elasticity of demand for sweaters where a 10 percent increase in income leads to a 25 percent decrease in the quantity of sweaters demanded at a given price. What type of a good is a sweater? Why?
2. A Calculate the cross-price elasticity of demand between bread and butter where a 20 percent decrease in the price of bread results in a 50 percent increase in the quantity of butter demanded. Explain your answer. B. Calculate the income elasticity of demand for sweaters where a 10 percent increase in income leads to a 25 percent decrease in the quantity of sweaters demanded at a given price. What type of a good is a sweater? Why?
Most questions answered within 3 hours.
-
Explain why it is important to know common Windows processes
when conducting a forensic investigation
asked 1 minute ago -
How do child protective services help to reduce the
vulnerability of minors to human trafficking?
asked 8 minutes ago -
Which of the following is correct?
a. ATC = AVC/Q
b. ATC = AFC/Q
c. ATC...
asked 8 minutes ago -
The height of a Harrier airplane above the ground is given by h
= 4.00t 3...
asked 17 minutes ago -
Subject Conflict resolution :
1-Describe the basic model for engaging someone in a
collaborative discussion in...
asked 18 minutes ago -
Using the four models of CSR, and given your own personal
values, what type of firm...
asked 21 minutes ago -
A 10 kg mass slides along a frictionless plane inclined at 38
degrees to the horizontal....
asked 25 minutes ago -
How many moles of solid sodium fluoride should be added to 1.0 L
of a saturated...
asked 32 minutes ago -
Use R to do the following. please provide the
code
Import the data set `UScereal`, create...
asked 39 minutes ago -
At 100°C, 1.00 mol of liquid water is allowed to expand
isothermally into an evacuated vessel...
asked 59 minutes ago -
A vapor-compression heat pump system uses Refrigerant R-134a as
the working fluid. The refrigerant enters the...
asked 1 hour ago -
A rock band plays at a 67 dB sound level. How many times greater
is the...
asked 1 hour ago