ZuoTi.Pro
Question

QUESTION 7 The demand for video recorders has been estimated to be Qy = 134 - 1.07P f+46P m-2.1P y-51, where Qy is the quanti

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Video recorders are inferior goods.

We have

Q_{v} =134-1.07Pf+46Pm-2.1Pv-5I

Price of the video recorder film is increasing by 1.07 which means that the price is increasing by a small margin. Furthermore, adding the price of video recorder is increasing by a factor 2.1 and the income is increasing by 5 ( relatively higher ).

Therefore, revenue and price are increasing leaving the quality of the voice recorder decreasing by a large margin for maintaining the balance.   

Thus, we can conclude the quality decreases and that is why the video recorders are inferior goods.

0 0
Add a comment
Know the answer?
Add Answer to:
QUESTION 7 The demand for video recorders has been estimated to be Qy = 134 -...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Elasticity of Demand for DVD Rentals The proprietor of the Showplace, a video store, has estimated...

    Elasticity of Demand for DVD Rentals The proprietor of the Showplace, a video store, has estimated that the rental price p (in dollars) of prerecorded DVDs is related to the quantity x (in thousands) rented/day by the demand equation 2 x = / 36 - p2 (Osp 56) Currently, the rental price is $5/disc. (a) Is the demand elastic or inelastic at this rental price? O elastic O inelastic (b) If the rental price is increased, will the revenue increase...

  • The demand for haddock (fish) has been estimated to be Log Q = .769 – 2.174Log...

    The demand for haddock (fish) has been estimated to be Log Q = .769 – 2.174Log P + 0.461Log I +1.909LogPm Where Q = quantity fish demanded P = price of fish I = income of consumes Pm an index of prices of meat and poultry Log is another way of writing natural log 1)What is the numerical value of the price elasticity of demand? Is fish demand elastic or inelastic? 2)What is the numerical value of the income elasticity...

  • 7. If the price of orange juice rises 10%, and as a result the quantity demanded...

    7. If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for orange juice is O A. inelastic. OB. -1.25 O c. Both A and B above. OD. Neither A nor B above. 18. If the price of orange juice rises 10% and as a result the quantity demanded falls by B%, the price elasticity of demand for orange juice is O A. - 10.0. OB. -0.80....

  • The price elasticity of demand is equal to the percentage change in price divided by the percentage change...

    The price elasticity of demand is equal to the percentage change in price divided by the percentage change in quantity demanded the change in quantity demanded divided by the change in price. the value of the slope of the demand curve. the percentage change in quantity demanded divided by the percentage change in price If 20 units are sold at a price of US$50 and 30 units are sold at a price of US$40, what is the absolute value of...

  • Refer to Figure 5-1. A perfectly elastic demand curve is shown in Panel D. Panel A. Panel C...

    Refer to Figure 5-1. A perfectly elastic demand curve is shown in Panel D. Panel A. Panel C. Panel B. Refer to Figure 5-5. The data in the diagram indicates that DVDs are luxury goods. are both luxury goods and price inelastic goods. are price inelastic goods. are both necessities and price inelastic goods. are necessities. 3- Consider the following pairs of items:   a. shampoo and conditioner b. iPhones and earbuds c. a laptop computer and a desktop computer d....

  • The demand for your product X has been estimated to be Qx = 7, 880 −...

    The demand for your product X has been estimated to be Qx = 7, 880 − 4Px − 2Py + Pz − 0.1M where Y and Z are other (related) products. The relevant price and income data are as follows: Px = 10, Py = 15, Pz = 50, M = 40, 000 (Please show work and answers to questions a-e) a. Which goods are substitutes for X? Which are complements? b. Is X an inferior or a normal good?...

  • The demand function for bicycles in Super City has been estimated to be: Q = 2,000...

    The demand function for bicycles in Super City has been estimated to be: Q = 2,000 - 5.5P + 15I Below is additional information concerning this Regression: Standard Error (SE) of the Intercept coefficient = 350 Standard Error (SE) of the price coefficient = 0.32 Standard Error (SE) of the Income coefficient = 0.70, R-Square = 0.64, Adjusted R-Square = 0.61, F-Statistic = 31.402, Q is quantity demanded per year, P is the price in dollars, and I is annual...

  • 21.    A positive income elasticity of demand coefficient indicates that     a.    a product is an...

    21.    A positive income elasticity of demand coefficient indicates that     a.    a product is an inferior good     b.    two products are substitute goods     c.    two products are complementary goods     d.    a product is a normal good 22.    All the combinations of two products that will yield the same total utility to a consumer are reflected in     a.    the budget line     b.    the marginal rate of substitution     c.    an indifference curve     d.    the...

  • Question 70 2.5 pts In the unemployment rate, part-time workers are: not included in the labor...

    Question 70 2.5 pts In the unemployment rate, part-time workers are: not included in the labor force. included in the labor force, but counted as unemployed. treated the same way as discouraged workers. included in the labor force and counted as employed. Question 69 2.5 pts Which of the following would be officially classified as unemployed? O a school administrator who has been working as a substitute teacher one day per week while looking for a full-time job in administration...

  • Please use own words. Thank you. CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions...

    Please use own words. Thank you. CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions listed below in specific detail. A minimum of 4 pages is required; ensure that you answer all questions completely Case Questions Who are the main players (name and position)? What business (es) and industry or industries is the company in? What are the issues and problems facing the company? (Sort them by importance and urgency.) What are the characteristics of the environment in which...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT