Homework Answers
It can be mentioned that if the demand is relatively inelastic where the price elasticity of demand is less than one, then the decrease in price would increase the quantity demanded less proportionately and the discount coupons can help to decrease the price so that the quantity demanded increase and do increases less proportionately the marginal revenue would be more than that of marginal cost incurred for that particular grocery items as a result of which the total profit can increase but this works well when the elasticity of demand is greater than one because if it is relatively elastic then discount coupons can decrease the price which would increase the quantity demanded more proportionately as a result of which the total revenue can increase
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6. Explain briefly why the owners of grocery stores and other supply stores distribute discount coupons...
SX boo toiaesls orgoori odz,1or..d 6. Explain briefly why the owners of grocery stores and other...
SX boo toiaesls orgoori odz,1or..d 6. Explain briefly why the owners of grocery stores and other supply stores distribute discount coupons to some selected group of shoppers who have the price elasticity of demand less than one for those goods and services to use the coupons.
5. If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity...
5. If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity or 6. If supply is inelastic, will shifts in demand have a larger effect on equilibrium price or on Under which circumstances does the tax burden fall entirely on consumers? İpts on price? Ipts quantity? 1pts 8. What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve to higher prices and lower...
1) In your own words, explain what elasticity of supply is signifying. (Put in your own...
1) In your own words, explain what elasticity of supply is signifying. (Put in your own words – just don’t copy and paste the notes.) 2) Explain why a tax levied on a good with elastic supply will bring in less revenue for the government than one placed on a good with inelastic supply. 3) Briefly explain why both the Elasticity of Demand and the Elasticity of Supply are greater (that is, more elastic) at longer time horizons compared...
(8 marks total) QUESTION 11 a) Why are both the price elasticity of demand and the price elasticity of supply likely to...
(8 marks total) QUESTION 11 a) Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run? (3 marks) b) Choose a good and draw both a demand and supply curve for that good. Explain and show how an increase in household income would affect the equilibrium price and quantity. (5 marks) QUESTION 12 A firm will continue producing in the short run even if it is making a...
1. A care manager decides to lower the price of the featured collee drink from $3...
1. A care manager decides to lower the price of the featured collee drink from $3 to $2 and finds that sales during the week increase from 240 cups to 480 cups. a. Calculate the price elasticity of demand of the featured coffee drink. b. Is demand for the featured coffee drink elastic? c. What is the effect on total revenue for the cafe? 2. Characterize the demand for each of the following goods or services as relatively price elastic...
(10 marks) Suppose the market for apples is represented by: Supply: Demand: QP Q=36-3P Find the...
(10 marks) Suppose the market for apples is represented by: Supply: Demand: QP Q=36-3P Find the market cquilibrium price and quantity. (2 marks) b. Find the price elasticity of demand at the equilibrium. (3 marks) Suppose bad weather results in a poor harvest of apples. Using the price elasticity calculated in (b), explain its effect on the total revenue of the apple farmers (5 marks) S2 Assignment 1 v2.docx (9 marks) In December 2019, The Travel Industry Council of Hong...
Many grocery store chains ofer customers a card they can scan when they check out and...
Many grocery store chains ofer customers a card they can scan when they check out and offer discounts to people whoo so. To get the card, customers must give information, including a mailing address and e-mail address. The actual purpose is not to reward loyal customers but to gather data. What data do these cards allow stores to gather, and why would they want that data? What data do these cards allow stores to gather? Select all that apply A....
6. Why the aggregate supply curve slopes upward in the short run In the short run,...
6. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen. For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a...
Revision Q1 Malaysia Budget 2014: 6% New Tax Effective April 2015, Sugar Subsidy Abolished Prime Minister...
Revision Q1 Malaysia Budget 2014: 6% New Tax Effective April 2015, Sugar Subsidy Abolished Prime Minister Najib Razak unveiled a Malaysian Budget for 2014 on Friday that includes decisive changes like the new Goods and Services Tax (GST) and the elimination of the sugar subsidy. The budget aims broadly to address Malaysia's large fiscal deficit, shrinking current- account surplus and growing debt pile. The Southeast Asian nation's debt load at 54 percent of gross domestic product at the end of...
Zara: Apparel Manufacturing and Retail Zara is a chain of fashion stores owned by Inditex, Spain’s...
Zara: Apparel Manufacturing and Retail Zara is a chain of fashion stores owned by Inditex, Spain’s largest apparel manufacturer and retailer. In 2012, Inditex reported sales of about 16 billion euros from more than 6,000 retail outlets in about 86 countries. In an industry in which customer demand is fickle, Zara has grown rapidly with a strategy to be highly responsive to changing trends with affordable prices. Whereas design-to-sales cycle times in the apparel industry have traditionally averaged more than...
SX boo toiaesls orgoori odz,1or..d 6. Explain briefly why the owners of grocery stores and other supply stores distribute discount coupons to some selected group of shoppers who have the price elasticity of demand less than one for those goods and services to use the coupons.
5. If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity or 6. If supply is inelastic, will shifts in demand have a larger effect on equilibrium price or on Under which circumstances does the tax burden fall entirely on consumers? İpts on price? Ipts quantity? 1pts 8. What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve to higher prices and lower...
(8 marks total) QUESTION 11 a) Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run? (3 marks) b) Choose a good and draw both a demand and supply curve for that good. Explain and show how an increase in household income would affect the equilibrium price and quantity. (5 marks) QUESTION 12 A firm will continue producing in the short run even if it is making a...
1. A care manager decides to lower the price of the featured collee drink from $3 to $2 and finds that sales during the week increase from 240 cups to 480 cups. a. Calculate the price elasticity of demand of the featured coffee drink. b. Is demand for the featured coffee drink elastic? c. What is the effect on total revenue for the cafe? 2. Characterize the demand for each of the following goods or services as relatively price elastic...
(10 marks) Suppose the market for apples is represented by: Supply: Demand: QP Q=36-3P Find the market cquilibrium price and quantity. (2 marks) b. Find the price elasticity of demand at the equilibrium. (3 marks) Suppose bad weather results in a poor harvest of apples. Using the price elasticity calculated in (b), explain its effect on the total revenue of the apple farmers (5 marks) S2 Assignment 1 v2.docx (9 marks) In December 2019, The Travel Industry Council of Hong...
Many grocery store chains ofer customers a card they can scan when they check out and offer discounts to people whoo so. To get the card, customers must give information, including a mailing address and e-mail address. The actual purpose is not to reward loyal customers but to gather data. What data do these cards allow stores to gather, and why would they want that data? What data do these cards allow stores to gather? Select all that apply A....
Revision Q1 Malaysia Budget 2014: 6% New Tax Effective April 2015, Sugar Subsidy Abolished Prime Minister Najib Razak unveiled a Malaysian Budget for 2014 on Friday that includes decisive changes like the new Goods and Services Tax (GST) and the elimination of the sugar subsidy. The budget aims broadly to address Malaysia's large fiscal deficit, shrinking current- account surplus and growing debt pile. The Southeast Asian nation's debt load at 54 percent of gross domestic product at the end of...
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