P1= $8/per footlong, Qd1= 20 P2= $5 / per footlong Qd2= 40 Interpret the results. Is...
P1= $8/per footlong,
Qd1= 20
P2= $5 / per footlong
Qd2= 40
Interpret the results. Is this product has elastic or inelastic price elasticity of demand? If you are the seller of this product, which unit price will sell it for to maximize your sells revenue?
Answer in words please
Homework Answers
Answer : Here the product has elastic price elasticity of demand. Because here when price falls from $8 to $5 then the quantity demanded increase by more than the price changed level. This means that the demand for the product is elastic.
In case of $8 price level, revenue = price * quantity = 8 * 20 = $160.
In case of $5 price level, revenue = 5 * 40 = $200
As at $5 price level the revenue is highest hence $5 will maximize the revenue.
Add Answer to:
P1= $8/per footlong,
Qd1= 20
P2= $5 / per footlong
Qd2= 40
Interpret the results. Is...
14. Refer to the diagram above. In the P1– P2 price range, demand is A....
14. Refer to the diagram above. In the P1–
P2 price range, demand is
A. perfectly elastic.
B. relatively elastic.
C. relatively inelastic.
D. of unit elasticity.
1. What is meant by price elasticity? 2. Define the terms elastic and inelastic (in words). 3. What range or price...
1. What is meant by price elasticity? 2. Define the terms elastic and inelastic (in words). 3. What range or price elasticity coefficients correspond to the following: a. elastic demand b. inelastic demand c. unit elasticity 4. What does it mean to say that a product is perfectly inelastic? Provide examples. 5. Explain the relationship between total revenue and elasticity. What will happen to total revenue when price is increased for a product with elastic demand? Inelastic demand? Unit elastic...
Price per bag Total Revenue $70 $2,100 30 $60 $2,400 40 $50 $2,500 50 $40 60...
Price per bag Total Revenue $70 $2,100 30 $60 $2,400 40 $50 $2,500 50 $40 60 $2,400 $30 $2,100 70 $20 $1,600 80 a) Calculate the total revenue at each price point. At which price would you advise the bookstore to sell bags? b) To assist with your presentation to the bookstore staff, you plan to have a discussion on elasticity. Calculate the price elasticity of demand between the following price points and indicate whether demand is elastic or inelastic:...
4. -12 points LarCAApCalc2 13.5.040 Find p1 and p2, the prices per unit (in dollars), so as to ma...
4. -12 points LarCAApCalc2 13.5.040 Find p1 and p2, the prices per unit (in dollars), so as to maximize the total revenue R=x1P1 + x2P2 where xi and x2 are the numbers of units sold, for a retail outlet that sells two competitive products with the given demand functions. X1-3100-4p1 + 2p2, X2 2400 + 4p1-3p2 p2 = $ Need Help?Read It Talk to a Tutor Watch It 5. -12 points LarCAApCalc2 13.5.042 A corporation manufactures candles at two locations....
Please answer all 3 will thumbs up. An apple grower finds that if she plants 40...
Please answer all 3 will thumbs up.
An apple grower finds that if she plants 40 trees per acre, each tree will yield 150 bushels of apples. She also estimates that for each additional tree that she plants per acre, the yield of each tree will decrease by 3 bushels. How many trees should she plant per acre to maximize her harvest? 5 Xtrees per acre Need Help? Submit Answer The demand function for beer is given below, where p...
%24 Question 9 Refer to the information provided in Figure 5.4 below to answer the question(s)...
%24 Question 9 Refer to the information provided in Figure 5.4 below to answer the question(s) that follow. $4 P1 P2 PA Démand Number of milkshakes The demand for milkshakes is unit elastic at Point C. If a store reduces the price of a milkshake from P3 to P4. its total revenue will increase. decrease. remain constant. either incréase or decrease. Question 8 Price and total revenue move in the same direction when demand is price elastic. price inelastic. unit...
please answer questions 2, 3,4, 5 demanded by no more/leserseny e the price elasticity of demand...
please answer questions 2, 3,4, 5
demanded by no more/leserseny e the price elasticity of demand 2. If a firm can sell 3.000 units of product A at SIO per unit and 5.000 at 58, then the price elasticny of demand is (value) and it is (elastic/inelastic): (show your work) The price of product X is reduced from $100 to $90 and, as a result, the quantity demanded increases from 50 1000 units. Therefore, demand for X in this price...
Problem 1 In a local market, the monthly price of Internet access service increases from $40...
Problem 1 In a local market, the monthly price of Internet access service increases from $40 per account to $52 per account, and the total quantity of monthly accounts across all Internet access providers decreases from 1,000,000 to 600,000. See pages 418 – 419. a. Assuming other things were equal, what is the price elasticity of demand? See EXAMPLE on 419. b. Is demand elastic, unit-elastic, or inelastic? Please explain. c. How would you interpret the price elasticity calculated in...
Table 2: Shoe Sales per Week Price Quantity Demanded 50 200 40 300 30400A 2a) Refer...
Table 2: Shoe Sales per Week Price Quantity Demanded 50 200 40 300 30400A 2a) Refer to Table 2. Use the midpoint formula to calculate the elasticity of demand between a price of $50 and a price of S60. Between a price of $50 and a price of $60, is demand elastic, inelastic, or unitarily elastic? 2b) Refer to Table 2. Use the midpoint formula to calculate the elasticity of demand between a price of $10 and a price of...
d. Calculate the following different elasticities: i. A price increase from P2 to P10 causes quantity...
d. Calculate the following different elasticities: i. A price increase from P2 to P10 causes quantity demanded to change from 80 units to 30 units. Calculate and interpret price elasticity of demand. (3 marks) ii. Income increase by 10% results in quantity demanded increases by 5%. Calculate and interpret income elasticity of demand. (2 marks) iii. Quantity of good B increases by 50% because of an increase in price of good A by 40%. Calculate and interpret cross elasticity of...
14. Refer to the diagram above. In the P1–
P2 price range, demand is
A. perfectly elastic.
B. relatively elastic.
C. relatively inelastic.
D. of unit elasticity.
1. What is meant by price elasticity? 2. Define the terms elastic and inelastic (in words). 3. What range or price elasticity coefficients correspond to the following: a. elastic demand b. inelastic demand c. unit elasticity 4. What does it mean to say that a product is perfectly inelastic? Provide examples. 5. Explain the relationship between total revenue and elasticity. What will happen to total revenue when price is increased for a product with elastic demand? Inelastic demand? Unit elastic...
Price per bag Total Revenue $70 $2,100 30 $60 $2,400 40 $50 $2,500 50 $40 60 $2,400 $30 $2,100 70 $20 $1,600 80 a) Calculate the total revenue at each price point. At which price would you advise the bookstore to sell bags? b) To assist with your presentation to the bookstore staff, you plan to have a discussion on elasticity. Calculate the price elasticity of demand between the following price points and indicate whether demand is elastic or inelastic:...
4. -12 points LarCAApCalc2 13.5.040 Find p1 and p2, the prices per unit (in dollars), so as to maximize the total revenue R=x1P1 + x2P2 where xi and x2 are the numbers of units sold, for a retail outlet that sells two competitive products with the given demand functions. X1-3100-4p1 + 2p2, X2 2400 + 4p1-3p2 p2 = $ Need Help?Read It Talk to a Tutor Watch It 5. -12 points LarCAApCalc2 13.5.042 A corporation manufactures candles at two locations....
Please answer all 3 will thumbs up.
An apple grower finds that if she plants 40 trees per acre, each tree will yield 150 bushels of apples. She also estimates that for each additional tree that she plants per acre, the yield of each tree will decrease by 3 bushels. How many trees should she plant per acre to maximize her harvest? 5 Xtrees per acre Need Help? Submit Answer The demand function for beer is given below, where p...
%24 Question 9 Refer to the information provided in Figure 5.4 below to answer the question(s) that follow. $4 P1 P2 PA Démand Number of milkshakes The demand for milkshakes is unit elastic at Point C. If a store reduces the price of a milkshake from P3 to P4. its total revenue will increase. decrease. remain constant. either incréase or decrease. Question 8 Price and total revenue move in the same direction when demand is price elastic. price inelastic. unit...
please answer questions 2, 3,4, 5
demanded by no more/leserseny e the price elasticity of demand 2. If a firm can sell 3.000 units of product A at SIO per unit and 5.000 at 58, then the price elasticny of demand is (value) and it is (elastic/inelastic): (show your work) The price of product X is reduced from $100 to $90 and, as a result, the quantity demanded increases from 50 1000 units. Therefore, demand for X in this price...
Table 2: Shoe Sales per Week Price Quantity Demanded 50 200 40 300 30400A 2a) Refer to Table 2. Use the midpoint formula to calculate the elasticity of demand between a price of $50 and a price of S60. Between a price of $50 and a price of $60, is demand elastic, inelastic, or unitarily elastic? 2b) Refer to Table 2. Use the midpoint formula to calculate the elasticity of demand between a price of $10 and a price of...
Most questions answered within 3 hours.
-
A flow rate of 0.4 m / s of air enters a compressor at 100 kPa....
asked 32 seconds ago -
Write a balanced chemical equation for the reaction between HCl
and NaOH. Be sure to include...
asked 4 minutes ago -
A 200 g mass is gently hung on a vertical spring which stretches
it 20cm before...
asked 7 minutes ago -
Elaborate on some of the difficulties in determine the value of
information, as well as the...
asked 3 minutes ago -
A person wants to use a lever to lift a dumpster weighing 4700
N. The lever...
asked 8 minutes ago -
Hello,
Can you assist with the 2 part multiple choice question?
1A) Which of the following...
asked 24 minutes ago -
A municipal bond you are considering as an investment currently
pays a yield of 6.82 percent....
asked 29 minutes ago -
My Ebook is already expired. How could I keep using it since it
is very helpfull...
asked 36 minutes ago -
describe in detail your "perfect" place to study in your home
giving great detail to how...
asked 52 minutes ago -
Decide with a brief explanation of the following statements
about reaction rates and catalysis are true:...
asked 55 minutes ago -
Write a grading program in Java for a class with the following
grading policies: There are...
asked 57 minutes ago -
Can someone explain the process of this Display a text
file program and show the supposed...
asked 1 hour ago